1. Enhanced Bank Reconciliation – Stay in Sync with Your Bank

Keeping your financial records aligned with your bank statements is crucial, but manual reconciliation can be tedious and prone to errors. TallyPrime simplifies this with automated matching and smart reconciliation logic to accurately match the book transactions against the bank transactions, making the process faster and more reliable. 

How It Works:

• Exact match: TallyPrime uses unique instrument numbers and transaction amounts to accurately match bank and book transactions. You can choose to automatically reconcile or review the matches before confirming them. 

• Potential match/Smart match: When exact matches aren’t possible, TallyPrime applies configurable smart rules to find potential matches. These include: 

• • Identifying matches based on amounts if instrument numbers are missing. 

• • Accounting for rounding differences or bank charges. 

• • Recognizing instrument numbers despite variations like prefixed zeros or added spaces. 

• • Adjusting the match criteria for flexible date ranges. 

Why It Matters:

• For bookkeepers & accountants: Automate reconciliation, reduce manual errors, and speed up your workflow. 

• For business owners: Gain real-time visibility into cash flow, prevent financial discrepancies, and avoid surprises like missed payments or unexpected bank charges. 

No more missing transactions, unauthorized withdrawals, or reconciliation headaches. Whether handling high-volume transactions or maintaining books independently, TallyPrime ensures you stay in control.

2. Automated Accounting Using Bank Statements – Making Accounting Effortless

Entering transactions manually is time-consuming and prone to mistakes. With TallyPrime, you can import bank statements directly and let the system do the heavy lifting—automating ledger assignment and voucher creation for a smoother, error-free accounting experience. 

Key Benefits: 

• Seamless import & auto-formatting: 

• • No need to manually format statements—TallyPrime supports over 145 banks and structures data for direct use. 

• • Keeps financial data secure within TallyPrime without relying on external tools. 

• Bulk voucher creation in one click: 

• • Assign ledgers based on transaction details, and TallyPrime will generate vouchers with all necessary details, including UTR No., Cheque No., and transaction references. 

• • Allows additional entries like adjustments or bill details directly within vouchers. 

Who Benefits?

• Accountants & CAs: Ideal for businesses practicing post-facto accounting, significantly reducing manual workload. 

• Business owners: Eliminate tedious data entry and maintain precise financial records effortlessly. 

With automated accounting, transactions are recorded accurately, saving time and ensuring compliance without the hassle of manual bookkeeping. 

Final Thoughts

TallyPrime is a game-changer for businesses looking to simplify banking and accounting. Whether it’s reconciling transactions effortlessly or automating voucher creation, this update empowers businesses with smarter, more efficient financial management. Say goodbye to reconciliation struggles and manual data entry—TallyPrime ensures accuracy, efficiency, and financial peace of mind. 

The post TallyPrime : Transforming Banking and Accounting for SMEs appeared first on Tally.

To make your eTIMS journey easy, we have compiled a list most frequently asked questions that will help you smoothen your eTIMS integration.  

eTIMS – What is this new structure?

eTIMS (Electronic Tax Invoice Management System) was introduced in Kenya recently to make the invoicing structure in the country easy, effective, and flexible for taxpayers. This is a new software solution (made available by Kenya government and by private entities) that will capture all invoices raised by a business and directly upload the invoice data to the eTIMS portal. The solution is compatible with various devices, such as laptops, smartphones, tablets, and more.

Who should register for eTIMS?

All the taxpayers in Kenya (both VAT-registered and non-VAT-registered) should integrate their existing invoicing format into the new eTIMS structure and should start generating and processing electronic tax invoices. However, businesses using ETR devices can continue to raise invoices through the device. The migration to eTIMS for these businesses is not mandatory.

Related Read: A Step-by-Step Guide to Registering for eTIMS

Is eTIMS applicable for non-VAT registered taxpayers as well?

According to the new eTIMS, taxpayers can claim their business expenses only when those expenditures are backed with valid electronic tax invoices. Hence, this system also includes non-VAT registered taxpayers into its fold.

What benefits does eTIMS plan to bring to Kenya’s tax system?

The KRA (Kenya Revenue Authority) introduced eTIMS to bring about positive changes to the existing tax structure – reduced compliance costs, increased flexibility, compatibility with multiple devices, proper maintenance of invoice records, and simplified filing of tax returns.

Who should be onboard to eTIMS?

Any person carrying out business in Kenya should be onboard to eTIMS. Individual companies, partnership firms, trusts, corporates and other business establishments can onboard on eTIMS. All people satisfying the income tax obligations and individuals in informal and formal business sectors must be onboarded to the new eTIMS if they are not already using ETR devices.

What are the options to onboard on eTIMS?

The KRA has given four flexible options for businesses to onboard to eTIMS based on the nature of their business operations. These options are Online Portal, eTIMS Client, Virtual Sales Control Unit (VSCU), and Online Sales Control Unit (OSCU). You can refer to KRA’s official website for more details about these options.

Read more:

A Guide to the Different Types of eTIMS Solutions

VSCU and OSCU – A Beginner’s Guide to Setup

How should businesses register and onboard to eTIMS?

You have to visit the etims.kra.gov.ke portal and sign up there with your credentials. Then, you need to click on the “Service Request” option to select the type of eTIMS solution mentioned under “eTIMS Type”. Upload all the documents as mentioned on the portal. Submit your application. An official from KRA will review your application and approve the same. Once approved, you can install the eTIMS software on your device and start your work.

Can businesses reinstall eTIMS software on another device if they have already installed it on a different device?

You can reinstall eTIMS software on another device if your original device was stolen, damaged, needs a software upgrade, or cannot be used for other reasons. However, you should submit proper paperwork regarding the exact reason to the KRA officials to get their approval for re-installation.

Can businesses take the help of a third party to onboard to eTIMS?

Yes, you can take the help of a KRA-approved representative to onboard your system to eTIMS. However, you should provide your representative with all the required documents like an introductory letter, eTIMS Commitment Form, and valid IDs of business owners. This will ensure hassle-free onboarding.

How can I find KRA-approved third parties that provide eTIMS solution?

You can visit the eTIMS portal to get a full list of KRA approved third parties providing eTIMS solutions.

TallyPrime offers a KRA-approved eTIMS solution featuring an easy onboarding process and effortless invoicing. With TallyPrime you can:

• Instant generation of error–free invoices
• Real-time invoice upload
• eTIMS status report
• Integrated with VAT returns

The post FAQs on eTIMS in Kenya appeared first on Tally.

This is where eTIMS solution on TallyPrime excels. With TallyPrime, onboarding your business on eTIMS is a breeze and uploading invoices and other transactions happens with the click of a button. 

Introducing eTIMS on TallyPrime

TallyPrime’s eTIMS solution is designed to simplify eTIMS journey for businesses. TallyPrime offers a KRA-certified eTIMS solution featuring a simple onboarding process that can efficiently manage the full range of eTIMS tasks while ensuring compliance with all requirements.

With TallyPrime you don’t need to worry about the migration from ETR machine to eTIMS system or the onboarding process for eTIMS. Our Tally partners can easily help you migrate from the current TIMS system and get you onboarded on the eTIMS system.

How TallyPrime Powers Your eTIMS Journey

Welcome to eTIMS on TallyPrime. We bring you an advanced eTIMS solution that ease your eTIMS compliance burden. Imagine getting all the eTIMS compliance done from a single software without ever having to visit the eTIMS portal

Generating e-Invoices? Easy as a click!

Without leaving TallyPrime you will be able to upload KRA-certified invoices to the eTIMS portal. Thats right! TallyPrime has tailor-made a solution for businesses that will enable you to easily upload error-free invoices to the eTIMS portal.

On TallyPrime the entire process of uploading invoices to eTIMS portal is automated. As soon as you generate an invoice, TallyPrime uploads it to the eTIMS portal in real time and generates e-Invoices instantly with QR code and all other necessary details. This makes the whole eTIMS invoice process quick and easy.

• Real-time upload of ledger, stock and user details

Using TallyPrime, you can seamlessly upload ledgers, stock items, stock positions and user details in real-time. You can choose to exchange the ledger or stock items details individually while you are creating /modifying or in bulk or share them during transaction upload to the portal.

• Error-free transaction submission

With built-in validation checks, TallyPrime ensures that your invoices are correct before they are uploaded to eTIMS. This helps in preventing the chances of invoice rejection. You can be confident about the invoices and other data you upload, ensuring compliance at every step of the way.

• eTIMS Status Reports

Isn’t it a hassle to visit the eTIMS portal and then see the status of the transactions you have uploaded? TallyPrime lifts this burden for you. TallyPrime’s eTIMS status report will help businesses to keep track of the status of their invoices. You can get a comprehensive summary of invoices that are ready for exchange, uploaded to eTIMS, rejected by eTIMS, etc.

• Integrated with VAT returns and accounts

TallyPrime not only generates e-invoices instantly but also manages your books of accounts in an integrated manner, ensuring your books and compliance are always in sync.

TallyPrime is a complete business management software that helps you manage accounting and bookkeeping, inventory, tax and eTIMS and more in an integrated manner. This means that a single action to generate e-invoice automatically updates your accounts, adjusts inventory, and prepares VAT returns and reports. This seamless integration ensures that your financial reports provide a comprehensive view of your business.

Steps to enable eTIMS in TallyPrime

All you need to do on TallyPrime for uploading transaction is a one – time setup. Have a look at the steps to enable and generate invoices on TallyPrime’s eTIMS solution:

• Enable eTIMS from F11 configuration
• Upload ledger and stock details during creation or modification
• Record sales, upload and generate e-invoice

TallyPrime is designed to bring ease and simplicity to eTIMS journey of businesses. If you are finding it hard to adopt the eTIMS system, opt for TallyPrime’s eTIMS solution. Our budget friendly software can significantly enhance your invoice upload and management process while simplifying accounting, inventory and VAT compliance.

If you are an existing customer, reach out to our Tally partner, who will help you implement the eTIMS solution and guide you through the onboarding journey. If you are looking to buy TallyPrime click here to share your details.

The post Instant e-Invoicing with TallyPrime’s eTIMS Solution appeared first on Tally.

While integrating with the new eTIMS software, taxpayers can choose from different types of eTIMS solutions. Two of the most common eTIMS solutions are Virtual Sales Control Unit and Online Sales Control Unit, VSCU and OSCU for short.

Who should opt for VSCU and OSCU?

VSCU and OSCU are solutions that allow for system to system integration between the taxpayer’s invoicing/ERP system and eTIMS. KRA recommends taxpayers with numerous transactions/bulk invoicing to use these solutions for generation of invoices. However, OSCU is great for businesses that are completely online, whereas VSCU is great for businesses whose operations are not entirely online.

Signup process for VSCU and OSCU

There is a specific setup to follow that is different for VSCU and OSCU. But there is a common process to follow for onboarding before you sign up for OSCU or VSCU.

Steps common for both solutions

The steps to get access to eTIMS are the same, irrespective of whether you choose the VSCU or OSCU solution. So, let’s see these common steps first:

• Visit the official KRA portal for eTIMS: etims-kra.go.ke
• Click on the signup option to enter the personal identification number (PIN) of your business there. Choose the “verify” button.
• Check your registered mobile number for the OTP sent by the KRA site for verification. Enter the OTP on the portal’s page.
• Set up a new password, and log in again with your PIN and new password.
• Now is the time to choose the type of eTIMS solution you want (VSCU or OSCU, in this case). Choose the “Service Request” tab. A dialogue box will open up. Click on the option, “eTIMS” on this page.
• The Service Request form will be displayed now. Choose a suitable type of eTIMS solution (VSCU, OSCU, eTIMS Client, eTIMS online, etc.).
• After this, you will be asked to fill in the details on the eTIMS Commitment form. If you can’t find the form on this page, go to the “Learn More” section of KRA’s official portal. Click on the publications tab to see this form there.
• Once your service request and commitment forms have been filled out properly and submitted, you will get a confirmation on your mobile. The message will confirm approval of your request, and will give you the go-ahead for eTIMS installation for your KRA account, on the device of your choice.

VSCU-specific setup

• After getting the confirmation message, choose the VSCU package installation file from the official portal.
• To employ this type of eTIMS, you have to do the following:
  • Ensure you have at least Version 16 Java installed.
  • Install the Java Development Kit (JDK). In some devices, it will be named Java Runtime Environment (JRE).
  • Choose the Java environment variables where the JDK and JRE should be installed.
  • Use any file-sharing device to transfer the contents of the VSCU package file to your device.
  • Set the configurations properly and run the file. This will initiate the VSCU system on the Trader Invoicing System (TIS) on your device.

OSCU-specific setup

• After getting the confirmation message on your mobile, get the OSCU package from KRA’s official portal.
• Check the detailed activation guides mentioned on the portal for integrating this solution on your device.
• Initiation of OSCU will happen only when the Trader Invoicing System (TIS) verifies the taxpayer’s PIN, device information and branch ID.
• After the verification, OSCU gets initiated on your device, and you will start to receive communication from the KRA.

Integrating with eTIMS helps businesses to manage their invoices better and claim for business expenses. This transition can be successful only when you choose the right type of eTIMS solution. While the VSCU and OSCU work effectively in the automation of invoices, it is important to look at their features carefully and choose the one that suits the nature of your business the best.

The post VSCU and OSCU – A Beginner’s Guide to Setup appeared first on Tally.

KRA has designed different eTIMS solutions, to cater to the diverse needs of taxpayers. Some taxpayers are registered for VAT, while some are not. Some deal with goods and services, while others deal with only one. Hence, eTIMS currently offers different solutions to suit the different types of businesses in the country.

Why should you choose the right eTIMS solution?

eTIMS aims to automate your invoices and maintain an electronic record of the same. In Kenya, KRA has stated that effective 1^st January 2024, businesses cannot claim their business expenses, if the supporting invoices are not generated electronically. Hence, choosing the eTIMS solution that is appropriate for the nature of your business is very important for quick, accurate and effective generation and recording of your invoices.

Types of eTIMS Solutions

Have a look at the types of eTIMS solutions, who can apply for them and how to onboard your business on each type of solution:

eTIMS Lite

eTIMS Lite (Web Version)

Who is eligible?

• For non-VAT registered taxpayers
• Shouldn’t be using any other eTIMS software already
• Suitable for taxpayers selling only goods, only services, or goods & services
• Works well for small/micro businesses

eTIMS Lite (Unstructured Supplementary Service Data (USSD) Version)

Who is eligible?

• Taxpayers can access via the portal of eCitizen
• Can be accessed without the internet, using the short code *222#
• Works well for individual business owners handling minimal transactions

Onboarding Process for eTIMS Lite

• Go to the eCitizen portal on KRA – ectizen.kra.go.ke
• You need to log in with your eCitizen credentials here. If you don’t have an account, register for the same by entering your PIN.
• Verify your PIN by entering the OTP you got on your registered mobile number on the portal. Log in again with your PIN and password before clicking on the “Next” button.
• On the page that is now displayed, click on the “invoicing (e-TIMS)” option.
• Read the terms and conditions that are displayed. Tick the two boxes that you see on the page to agree with the terms.
• Click on the “activate invoicing” button, and the software is ready for your use.

eTIMS Client

eTIMS Client (Windows, Android Tablet and Personal Digital Assistant)

Who is eligible?

• Suitable for taxpayers selling only goods, only services, or both
• Shouldn’t be using any invoicing system already
• Compatible for laptops/desktops with the following settings:
  • Windows Operating System (Version 10.0.17 or higher)
  • At least 2GB of memory
  • At least 20GB of storage

eTIMS Client (Android Application only)

Who is eligible?

• Great for small/micro businesses
• Business should belong to the service sector
• Compatible with Android-based devices with the following settings:
  • At least 8.0 version of Android
  • At least 8GB of internal storage

Online Portal of eTIMS

Who is eligible?

• Should be dealing with services only
• Businesses should deal with a maximum of 10 invoices only every month
• eTIMS software initiated through an online portal

Virtual Sales Control Unit (VSCU)/ Online Sales Control Unit (OSCU)

Who is eligible?

• Works well for taxpayers looking to integrate their existing invoicing system with eTIMS
• Businesses with 100% online operations can opt for initiating eTIMS through OSCU, whereas businesses with online and offline operations can do the same through VSCU for their bulk invoicing
• Integration can be done by taxpayers themselves or from KRA-approved third-party agencies to overcome challenges

Onboarding process for eTIMS Client, Online Portal and VSCU/OSCU Types

Other than eTIMS lite, the onboarding process for all the other types of eTIMS is the same. Here are the onboarding steps you need to follow:

• Visit the portal, etims.kra.go.ke
• Sign up and type the PIN of your business.
• KRA will send an OTP to your registered mobile number to verify the identity of your business.
• Enter this OTP and the portal will now redirect you to the page where you can set a new password.
• Go to the portal again, and sign in with your new credentials.
• Go to the tab, “Service Request” and click on the “eTIMS Type” button. A list of eTIMS solutions will be displayed here. From here, you can choose the type you want (Client, Online, VSCU or OSCU).
• Add the relevant documents (ID proofs of directors, partners, or owners, as the case may be, and duly filled eTIMS Commitment Form)
• Submit the application.
• KRA will review your application and will approve the same if the details are right.
• After completion of the review, the eTIMS software is now ready to be installed on your device.

Choosing the right eTIMS Solution

Know the nature of your business and the volume of your transactions to choose the eTIMS solution that works well for you. Do you currently use an invoicing system? If yes, what’s the best way you can seamlessly integrate into the new eTIMS model? The answers to these questions will help you choose the ideal eTIMS solution.

The post A Guide to the Different Types of eTIMS Solutions appeared first on Tally.

The Kenya Revenue Authority (KRA) also stated that effective from January 1, 2024, taxpayers cannot claim their business expenses, if those expenses weren’t supported with electronic invoices. Hence, all taxpayers in Kenya have been gradually transitioning from their existing invoicing systems/ERPs to the new eTIMS model.

Is the onboarding process different for VAT and non-VAT-registered businesses?

The new electronic invoicing software of eTIMS comes in different types, with each type suiting a certain type of business. The basic eTIMS onboarding process of signing up with your credentials and verifying your business with the OTP is the same for VAT-registered and non-VAT-registered businesses.

However, the main difference arises in choosing the type of eTIMS solution that best fits businesses requirements. KRA released eTIMS Lite, a new platform, exclusively for non-VAT registered to seamlessly integrate to eTIMS. For VAT-registered businesses, KRA has other platforms such as eTIMS Client, Online Portal, Virtual Sales Control Unit (VSCU) and Online Sales Control Unit (OSCU).

eTIMS onboarding steps for non-VAT taxpayers 

Non-VAT registered businesses can access the new eTIMS Lite Software through the eCitizen portal.

• Visit the portal, ecitizen.kra.go.ke.
• If your business has an existing eCitizen account, you can log in with your credentials. If not, you can click on the signup option.
• Enter the PIN (Personal Identification Number) of your business to register your account.
• Enter the OTP you received on your registered mobile on the eCitizen portal and log in again with your new credentials. Register your PIN and click on the “next” option.
• The next step is to initiate the eTIMS solution you need. Click on the “invoicing (eTIMS) option on the page.
• A terms and conditions page will now be displayed. Read through and click on both boxes to agree to the terms. Now choose the “activate e-invoicing” option.
• Your eTIMS lite version is now ready to use on the device of your choice.

Onboarding steps for VAT registered taxpayers 

If you own a VAT-registered business in Kenya, here are the steps you can follow to onboard to eTIMS smoothly:

• Visit the official eTIMS onboarding portal, etims.kra.go.ke.
• Enter the PIN of your business after choosing the signup option.
• You will get an OTP on your registered mobile number for PIN
• Enter the OTP on the portal to verify your details.
• On the page that now gets displayed, you can set up your credentials by choosing a new password.
• Visit the portal again, and now sign in with your PIN and password.
• Go to the “service request” option. You will see the button, “eTIMS Type” here. Under this, different types of eTIMS software solutions are displayed. Click on the right option.
• Upload the supporting documents (Valid identity proofs of directors, partners, or owners of the business) to complete your application.
• eTIMS Commitment Form with all details filled up properly (you can search under the “publications” section in the KRA portal for this form).
• Choose the submit option to confirm the end of your application process.
• Your application will be sent for review to the KRA. Once an official from KRA approves of the details submitted here, you can install the eTIMS software on your device.

Tips for smooth integration to eTIMS

Here are a few tips for smooth onboarding on eTIMS:

• Understand the registration process thoroughly and submit all the valid documents required for a successful transition. The documents required will change based on the nature of your business.
• If you are unsure of doing the self-onboarding process, visit the nearest KRA branch immediately. An official will help you in the process, thereby saving a lot of time in the bargain.
• Refer to the official portal of KRA for detailed user guides for various types of eTIMS solutions.
• If you face any issue while onboarding to eTIMS, call the KRA helpdesk at one of their support numbers mentioned in the portal. Alternatively, you can also reach out to them through an email. Details of their support can be found here – https://www.kra.go.ke/business/etims-electronic-tax-invoice-management-system/learn-about-etims/etims-contact-and-support-details

The Kenya Revenue Authority has introduced eTIMS for proper recording and submission of electronic invoices. Since it brings discipline to the entire invoicing system in Kenya, all taxpayers (whether VAT-registered or not) must shift to eTIMS. The steps for onboarding are quite simple, and even small businesses can seamlessly integrate into eTIMS if these steps are followed properly.

The post eTIMS Onboarding for VAT and non-VAT Businesses appeared first on Tally.

Taxpayers can use eTIMS on any of their devices like computers, mobiles, tablets and more easily. A business has to first onboard on the eTIMS portal and then start generating e-Invoices.

Onboarding on eTIMS

Usually, when a new system is introduced, people find it difficult to shift from their existing system to the new one. The same is the case with eTIMS as well. Many taxpayers are asking the question ‘How do I onboard on eTIMS?’ A few taxpayers faced challenges while onboarding to eTIMS, mostly due to technical issues and lack of proper support.

However, listed below are the detailed steps that taxpayers can follow for smooth onboarding to eTIMS. These steps will help them overcome almost all challenges they face in this process.

Steps for smooth onboarding to eTIMS

• If you are a taxpayer in Kenya, here is how you can make a smooth transition to the eTIMS system:
• Visit the official portal of KRA for eTIMS – etims.kra.go.ke
• Enter your PIN (Personal Identification Number) when you click the signup option on this page.
• This will trigger an OTP to be sent to your registered mobile number.
• Enter the same OTP on the eTIMS portal of KRA. This will prompt you to the page where you can set a new password as your credentials.
• Now, visit the KRA eTIMS page once again, and log in with your PIN and the new password.
• Go to the “service request” tab. Click on this, and choose the software solution of your choice, when you click on the “eTIMS type”.
• On this page, you will now be asked to submit a few details and the eTIMS commitment form:
  • Details of directors, partners, or owners depending on the nature of your business (information about any of them will suffice for this purpose)
  • Go to the Publications section of the portal and navigate to the eTIMS Commitment form. Fill all the details in this form with the correct information and submit them on the portal.
• Check all the information that you have entered before you click on the submit button.
• Your submitted application will now be passed over to the KRA, where an official will check the authenticity of the details you have filled.
• Once he/she confirms the correctness of the information, he will approve your eTIMS onboarding application.
• Once your application is approved, you will get access to the eTIMS software. Get this software installed on your device (mobile, laptop, tablet and more. The different solutions of eTIMS you can onboard are:
  • eTIMS (Lite) – You can onboard to this web version via the https://ecitizen.kra.go.ke/ If your business doesn’t deal with too many transactions, this version is good for you.
  • eTIMS – From the KRA portal, you can onboard to this version using the code *222#. This system is great for handling the invoices of businesses handled by individuals/sole proprietors.
  • eTIMS Client – This software version is designed in such a way that it can be used by businesses dealing only with goods or with goods and services. This system can handle a large quantity of invoices from several branches and points of pay at the same time.
  • Virtual Sales Control Unit – This system is capable of handling bulk invoicing, and it plays a huge role in seamlessly shifting from the existing invoicing ERP system (even if not online currently) to the new eTIMS.
  • Online Sales Control Unit – This software version is also effective for seamless integration from the current invoicing system to the new eTIMS. However, this version is most effective if you currently use an online invoicing system.
• For clear installation guides, you can refer to the official YouTube videos posted by KRA, and the official portal as well.
• For personalized guidance, you can visit the KRA branch nearest to your location to get the help of an officer.

Onboarding to the new eTIMS solution is the need of the hour, if you are a taxpayer in Kenya. This solution enables all electronic invoices to be recorded to reduce human errors and processing time to a considerable extent.. Choose the type of system you want to onboard, and follow the instructions carefully, for a seamless and successful integration.

The post Step-by-Step Guide to Onboarding on eTIMS appeared first on Tally.

However, considering that some taxpayers faced integration and technical challenges in this process, the KRA announced a grace period until 31 March 2024. However, it is important to note that this grace period has been provided for non-VAT registered taxpayers only.

Let‘s read more about the compliance requirements and integration challenges that led to the extension of the eTIMS deadlines.

Grace Period Provided until 31^st March 2024

The Kenyan Revenue Authority (KRA), on 27 December 2023, announced that all non-VAT registered taxpayers could integrate their manual invoices on the eTIMS portal until 31 March 2024.

According to the earlier announcement made during the middle of last year, taxpayers had to pay penalties if they had not shifted to electronic invoicing within the deadline of 1 September 2023.

With KRA providing this grace period until 31^st March 2024, non-VAT registered taxpayers can rest assured knowing that they will not be asked for penalties for non-generation of e-invoices until the end of this period.

When taxpayers complete their onboarding formalities and move to eTIMS before the deadline date, they need to integrate all manual invoices (the ones issued after 1^st January 2024) with the new eTIMS model of the KRA.

Compliance Requirements for Onboarding

Now that you know about the extended deadlines for eTIMS integration, you need to fulfil compliance requirements before you start the process.

Who is required to move to the new eTIMS structure of the KRA? According to the law, all persons in business (whether registered or not registered for VAT) should start generating electronic invoicing within the approved deadlines. Who are these persons in business?

Persons in business can be any of the following:

• Any type of business – companies, partnership firms, sole proprietorships, trusts, associations and more
• Individuals who have to pay income tax on any of the following:

• • Tax on income from monthly rentals (MRI – Monthly Rental Tax)

• • Turnover tax (TOT)

• • Income tax paid every year – applicable in the case of corporations, partnership firms, and individuals with permanent business (applicable to residents & non-residents)

• • Persons who earn income from conducting businesses in all sectors (formal & informal)

• • All people involved in all types of businesses (whether registered or non-registered for VAT). Some businesses may be exempt from VAT (hospitals, medical services, education services, non-government organisations, tours & travels, and more). However, even these businesses should integrate their current system to eTIMS within the agreed deadlines.

Transition Challenges for Businesses

While the eTIMS structure has been introduced in Kenya to aid transparency in the tax structure and cut down tax evasion, it hasn’t been a smooth transition for taxpayers. Small businesses, especially, may confront the following challenges when onboarding to the new eTIMS structure of KRA.

Claiming Tax Deductions

In the earlier system, businesses could submit all their expenses that generated income to claim tax deductions, if applicable. However, in the new system, businesses can claim tax deductions only for those expenses that were supported by electronic invoices. 

If a business fails to submit electronic invoices, they have to pay around 30% of their tax liability, according to the law. Hence, all businesses should ensure that they diligently capture all the manual invoices (the ones issued after 1^st January 2024) and get them onboard with eTIMS within the deadline of 31 March 2024 to claim for tax deductions.

Problems with Infrastructure

Small businesses may not have the necessary infrastructure to issue electronic invoices through the KRA’s eTIMS model. They have to upgrade their structure, and this may cost them a lot of money and time.

Problems with Tracking Invoices

Since they are familiar with the traditional structure, non-VAT registered taxpayers may face a lot of challenges while generating and tracking e-invoices in real-time. Initially, there may be a few discrepancies for businesses trying hard to keep up with the efficiency and smoothness of eTIMS.

What’s the Best Solution to Overcome these Challenges?

The only way in which businesses can ensure smooth integration and onboarding on eTIMS is to choose the services of an experienced and professional ERP (Enterprise Resource Planning) service provider like Tally Solutions. Tally, for example, has a robust reconciliation and integration system. Its infrastructure is highly sophisticated, helping businesses to seamlessly integrate their manual invoices into the new structure without any errors or issues.

By choosing a good ERP solution, businesses can truly appreciate the real purpose of eTIMS and embrace transparency in their invoice generation and tax processes.

The post e-Invoicing Grace Period Provided for Non-VAT Registered Taxpayers appeared first on Tally.

In this blog, we will take you through a step-by-step guide on how taxpayers can register for eTIMS and start their integration formalities. If you are a taxpayer in Kenya, you will learn how to onboard to eTIMS seamlessly (whether you do it yourself or through a representative) after reading this blog.

Step-by-Step eTIMS Integration Process

These steps are helpful for taxpayers who want to install eTIMS by themselves.

• Visit the official taxpayer portal.
• Under the “Sign Up” option, you need to enter your Personal Identification Number (PIN).
• A one-time password is generated and sent to your registered mobile number.
• Enter the OTP, and you will be directed to the page where you can change your password.
• Login with the credentials by entering the KRA PIN and the password you just created.
• Choose the “Service Request” option, where you will be asked to choose the software solution by clicking on the “eTIMS Type” option,
• Upload these valid documents on the page that is now visible on your screen.

• • Details of at least one of the directors (in case of companies), partners (in case of partnership firms), and owners (in case of sole proprietorships)

• • eTIMS Commitment Form filled with all the valid details ( you can get this form from the Publications section on the website)

• Click on “Submit Application”
• An official, authorized by the KRA, will then review your application. If all the details furnished are correct, he will approve your application.
• You can then proceed to install your eTIMS software on your preferred device.  The official portal of the KRA contains detailed user guides for for self-installation of the eTIMS system. You can also check for these guides on KRA’s YouTube channel.
• If you need assistance with setting up the eTIMS software, visit the nearest KRA branch. An official will assist you with the necessary steps.
• When installing eTIMS software, you can visit the official KRA website and click on the link that is appropriate for you. Currently, the website has the following eTIMS options for you – eTIMS Multi Paypoint (Windows) Tooltip Text, eTIMSPaypoint (Windows) Tooltip Text, eTIMSPaypoint (Android) Tooltip Text, eTIMS Lite (VAT) and eTIMS Lite (non-VAT) Tooltip Text.

Prerequisites in Case of Choosing Representatives

Sometimes, taxpayers may not be able to install eTIMS on their system due to a number of reasons. If you fall under this category, you have nothing to worry about. You can appoint an authorized representative to install eTIMS on your behalf. All you need to do is submit the following documents:

• A letter of introduction, which needs to be signed by at least one of the directors of your company. The letter should clearly mention the details of the representative and your contact details. A KRA official may get in touch with you if they want more information.
• The directors, partners, or the owner of the business should fill out the eTIMS Acknowledgement & Commitment Form with all valid details duly signed.
• The national IDs of the directors, partners, or owners of the business
• CR12 form (in case of companies) and Partnership Deed (in case of partnership firms) copies

Types of eTIMS Integration

In the eTIMS integration process, system-to-system mirroring takes place between the KRA’s system and the taxpayer’s invoicing systems. An Application Programming Interface (API) acts as the intermediary in this process. This system-to-system integration happens in two ways:

Virtual Sales Control Unit (VSCU)

Taxpayers who have many transactions or a bulk number of invoices can use this system. This system is useful for those taxpayers whose transactions are not always online.

Online Sales Control Unit (OSCU)

This system is useful for taxpayers who only deal with online invoicing.

The steps for a seamless eTIMS integration of the KRA and your accounting system will help you with easy onboarding. While it is easy to do a self-installation, officials of the Kenyan Revenue Authority are always ready to help you with any assistance you may require in this process. For any queries, you can walk into the KRA office nearest you, and an authorized official will provide you with a quick resolution.

The post Step-by-Step Guide to Registering for eTIMS and Compliance Requirements appeared first on Tally.

Businesses not familiar with the new eTIMS are facing challenges while integrating their old systems to the new platform. So, what are these challenges and what steps should be followed to ensure a seamless integration? We answer all of these questions and more in this blog.

Step by Step eTIMS Integration Process in Kenya

To ensure a smooth integration of their accounting system in the new eTIMS structure, businesses in Kenya should follow the below steps:

1. Create an account on the official taxpayer portal of the Kenya Revenue Authority.
2. Sign up on the portal by keying in your personal identification number (PIN).
3. You will not get an OTP on your registered mobile number.
4. Enter this OTP on the portal to complete the signup formalities on the KRA’s portal.
5. Return to the taxpayer’s portal and login by entering your PIN and the new password you created during signup.
6. You will find the menu “eTIMS type” on this portal. Under this menu, you will find a few options. You need to click on the “Service Request” option.
7. The portal will now ask you to choose your preferred eTIMS software solution. Here, click on the option Tally, if you have opted for it.
8. Now comes the process of uploading and screening documents. You should upload one of the following documents to validate your authenticity – a national ID of at least one of the directors of your company, one of the partners in the case of partnership firms, or of the sole owner in case of proprietorships.
9. Fill in the details on the Acknowledge and Commitment form on the official portal of the KRA.
10. Submit your application details to complete the onboarding of the integration process.
11. Once your application is submitted, an officer from the KRA will approve your application if all the details are correct.
12. You can then install the eTIMS software on your preferred device and integrate your accounting systems with the same.

Common Integration Challenges Faced in eTIMS in Kenya

Most of the challenges observed were because individuals and businesses weren’t aware of who should or should not comply with eTIMS regulations in Kenya. Here are a few points that will bridge this knowledge gap:

• Effective 1 January 2024, VAT-registered and unregistered persons will have to comply with eTIMS integration.
• Anyone earning rental income from residential property should comply with eTIMS regulations in Kenya.
• Businesses that have registered for Turnover Tax (TOT), but haven’t integrated their systems with the previous TMS system for not meeting the necessary threshold should comply with eTIMS regulations.
• All businesses whose annual turnover doesn’t exceed KS5 million per year are eligible for eTIMS integration.
• All businesses that trade in goods and services that are either exempt or zero-rated as per the VAT Act 2013 should comply with eTIMS processes.
• All businesses that were VAT registered but could not integrate the old TMS systems due to some challenges or technical issues.

Tips for Seamless Integration of eTIMS with Accounting Systems

Here are some tips to seamlessly integrate your accounting systems with the new eTIMS structure. This way, you can get all your invoices compliant with eTIMS and avoid paying the penalty charges. Currently, taxpayers have to pay twice their usual tax rates for eTIMS non-compliance.

Seamless Integration

Selecting the right ERP software is essential for smooth eTIMS integration. The software should be fully compatible with eTIMS, user-friendly, and customizable to fit your existing accounting processes. Real-time data synchronization is crucial for maintaining updated and compliant invoices. Additionally, strong support and training from the ERP provider are vital for a smooth transition.

TallyPrime offers all these features, ensuring seamless integration with eTIMS. By using TallyPrime, you can enhance transparency and accuracy in your invoice generation and tax processes, making the transition efficient and hassle-free.

Features and Functionalities

Integration with eTIMS will be a seamless and hassle-free process when you choose the right software with the right features and functionality. Some of the basic features your software should contain are:

• Effective VAT reporting – You should be able to report VAT accurately and on time on your new eTIMS system to avoid penalty charges. Hence, the first feature you should look for in your software is effortless VAT reporting. This helps you comply with all the VAT and tax regulations in Kenya.
• Efficiency of systems – Once all the old systems are integrated with the new structure, the software should run efficiently. This way, you can automate workflow management, cut delays & manual errors, and improve your productivity.
• Cost-effective systems – Solutions like Tally, for example, have a direct partnership with the KRA. Therefore, all compliance and legal considerations can be implemented directly into your new eTIMS, without you having to pay for any extra feature.
• After-sales support – When choosing software, you should look into its after-sales support as well. During or after the integration process, you may face some technical issues, issues related to compliance and more. So, choose a solution that is available to you 24/7 for seamless integration.

Scalability and Future-Proofing

When your business grows, your eTIMS integration software should also be able to grow and accommodate the changes easily. It should have the bandwidth for scalability. This way, you can future-proof your business from all possible changes that might occur later. As a result, when you choose scalable software for eTIMS integration, you can expect your software to always work effectively.

Bottom Line

One of the most critical ways to integrate your accounting system with eTIMS is to choose the right software. Software solutions like TallyPrime have automated e-invoicing and cash flow management features. If you are a business that is going through challenges shifting to the new eTIMS structure, look no further.

The post Integration of eTIMS with Accounting Systems – Tips for Seamless Transition appeared first on Tally.