Effective 1 January 2024, anyone offering goods or services to corporate clients will need to issue eTIMS compliant invoices as only such expenses will be regarded as tax deductible by the corporate client. The new e-invoicing requirement applies whether or not a person is registered for VAT; but does not apply if one has already onboarded on TIMS (device based).

This means that in 2024 and beyond, anyone in B2B business will need to be on eTIMS if they are to continue to trade with other corporate businesses.

Businesses will then be asked to show proof of eTIMS compliance because other businesses will only want to deal with persons who are similarly compliant.

Appropriate eTIMS technology

The appropriate technology for each business depends on the following factors: 

• Service or goods business;
• Number of tills or paypoints; 
• Hardware preferred – desktop, laptop or mobile phone
• Frequency of invoicing; and 
• Use of in-house billing system.

• Individual consultants
• SMEs selling to corporates
• Large corporate entities.

The following persons and businesses are exempt from eTIMS:

• Non-resident persons without a permanent establishment in Kenya (a place of business in Kenya);
• Emoluments such as salaries and wages;
• Imports;
• Investment allowances;
• Interest; and
• Airline passenger ticketing and similar payments.

Types of eTims solutions: