Overview

The Kenya Revenue Authority (KRA) continues to champion the modernization of tax administration by rolling out the eTIMS Fuel Station System, a tailored extension of the existing eTIMS solutions.

The petroleum sector, known for its complex and high-volume operations, was significantly impacted by the electronic invoicing requirement that mandates a compliant e-invoice for every sale. Traditional ETRs often posed operational challenges, resulting in non-compliance and inefficiencies in fuel dispensing environments.

The eTIMS Fuel Station System was introduced to address these gaps. Implementation began in June 2024 and follows a 12-month phased rollout, including a voluntary pilot and extensive stakeholder engagements ahead of the mandatory compliance deadline.

1. Objectives of the eTIMS Fuel Station System

This system enables fuel stations to meet real-time electronic invoicing requirements while ensuring compliance, accuracy, and operational efficiency in a fast-paced retail environment. It also aims to reduce manual errors and simplify tax filing through system automation.

2. Key Benefits for Fuel Stations

• Automation enhances efficiency and eliminates manual processes.
• Faster service delivery improves customer experience at the forecourt.
• Supports PIN capture, mobile payments, and loyalty programs for seamless integration.
• Improves invoice accuracy and simplifies reconciliation.
• Feeds directly into simplified VAT returns for easier compliance.
• Enables real-time validation for quicker supplier payments and VAT refunds.

3. How the System Works

eTIMS integrates with the fuel station’s automation setup—forecourt controller, sales system, POS, printer, or fuel management system—to ensure that all transactions are recorded and transmitted to KRA in real time. The system supports offline invoicing, VAT auto-fill, mobile money, and loyalty programs, enhancing both compliance and customer convenience.

4. Is the System Mandatory?

Yes. All fuel stations must integrate with eTIMS by 30^th June 2025. Failure to comply may result in penalties or enforcement actions. Support is available to assist stations in a seamless migration.

5. Integration Options

• Self-Integration: For stations with internal IT capacity.
• Third-Party Integration: For those requiring external certified integrators.

6. Cost of Integration

Costs vary depending on system complexity, level of automation, and integration method. Certified integrators can provide tailored estimates.

7. How to Get a Certified Integrator

You can access the list of approved eTIMS third-party integrators via the following link:

https://www.kra.go.ke/business/etims-electronic-tax-invoice-management-system/learn-about-etims/etims-system-to-system-integration

8. Where to Get Support

KRA offers training, technical support, and advisory through the integration journey.

• Phone: +254 711 099 999
• Email: timsupport@kra.go.ke
• Offices: eTIMS Ops, 7^th–8^th Floor, JKUAT Towers Nairobi, or any KRA office nationwide.

This solution is tailored for businesses that have an invoicing system and would like to integrate with eTIMS. System-to-system integration between KRA and the taxpayer's invoicing systems has been provisioned via an Application Programming Interface (API). This can be achieved in two ways;

1. Virtual Sales Control Unit (VSCU) – this solution allows for a system to system integration between the taxpayer’s invoicing/ERP system and eTIMS. It is suitable for taxpayers undertaking bulk invoicing and is not always online.
2. Online Sales Control Unit (OSCU) - this solution also allows for a system to system integration between the taxpayer’s invoicing/ERP system and eTIMS. It is suitable for taxpayers whose invoicing is always online.

How to Become a Certified 3^rd Party Integrator

The process will entail the development, testing, vetting, and certification of either the interested taxpayer who has the capacity to self-integrate or for 3rd party software developers (integrators) to facilitate the taxpayer integration process.

Taxpayers can choose to initiate the self-integration process or enlist the services of KRA-verified third-party integrators.

The links below provide information on the integration process and specification documentation to commence the testing process:

1. OSCU Specification document
2. VSCU Specification document
3. Step by step guide on how to register in sandbox
4. Technical Specification for the Trader Invoicing System
5. Sandbox test environment

2. System overview

BII allows a registered buyer to generate a tax invoice on behalf of a seller for goods or services supplied. This model is appropriate where sellers are not well- positioned to issue tax invoices, such as in agricultural or informal sectors. BII ensures transactional transparency and real-time reporting to KRA.

3. Workflow and process logic

Access to the BII solution is provided through eCitizen. Buyers log into the KRA Profile by selecting the Buyer Initiated Module on eCitizen or by dialing *222# and navigating to the Buyer Initiated Module under KRA Services.

The Buyer initiates the request, followed by validation of the Seller’s details against KRA records. Where required, the Seller is automatically onboarded onto eTIMS, ensuring compliance with statutory requirements.

The Buyer initiates the invoice via eTIMS by logging into their eTIMS solution and selecting the "Initiate Buyer Invoice" option. The buyer enters key invoice details such as the Seller’s ID or PIN, the Invoice Number and date, the description of goods or services and the unit price, quantity and total amount. Alternatively, the buyer may upload these details via a .csv file as outlined in the eTIMS Buyer Initiated Invoicing User Manual [2025].

The eTIMS system validates the seller’s KRA PIN validity and eTIMS on-boarding status, and blocks the issuance of invoices for VAT-registered sellers. Invoice data is validated against pre-filled charts. The BII request is then generated by the system and a message is sent to the seller via SMS through their eTIMS-registered details containing the name of the buyer and which informs them that they have a pending invoice for approval. A report is also generated for the seller to view the status of the buyer-initiated invoice, that is, whether it is approved, rejected or pending. Pending invoices include those that have not been submitted successfully due to a system communication error or that are awaiting approval form the seller’s side

The seller is notified of the pending invoice and must consent to the request by the buyer by accepting or rejecting the generated invoice. They are notified through a prompt sent via Unstructured Supplementary Service Data (USSD). Sellers have thirty (30) days during which they may accept or reject the generated invoice after which the invoice is automatically rejected as stated in the Buyer Initiated Invoicing USSD Consent Step by Step Guide [2025]. Approved invoices are transmitted to eTIMS in real time. The system logs all actions, that is, the initiation, approval and modifications of invoices. Any misuse or fraudulent activity related to buyer-initiated invoices will result in immediate deactivation of eTIMS by the Tax Service Office (TSO) if the buyer is found to be non-compliant or to have contravened their terms of approval.

The process flow captured in the chart below outlines the complete sequence of interactions between the Buyer, the Seller and the eTIMS solution. The Buyer is required to initiate invoice generation with accurate details such as seller ID, quantity and price and to comply with applicable data protection laws. Sellers are required to on-board onto eTIMS, approve or reject invoices within 30 days and generate credit notes to correct original invoice in the case of correcting errors, including taxpayers using USSD option.

4. Compliance & legal safeguards

Buyer Initiated Invoicing (BII) under eTIMS is supported by Kenyan tax law, which sets out requirements for electronic invoicing and conditions under which a buyer may generate a tax invoice on behalf of a seller.

Section 16(1)(c) of the Income Tax Act (Cap 470) mandates the use of electronic invoicing through eTIMS for the allowance of deductions on loss or expenditure and the Tax Procedures Act Cap 469B Section 23A (3A) allows a purchaser to issue an electronic invoice on behalf of a small-scale seller.

Buyers must consent to KRA’s data usage policies with penalties applying for the deliberate misuse of data as per Section 23A of the Tax Procedures Act. Both the Buyer and Seller are required to agree to a declaration confirming their understanding and compliance with invoicing policies, legal requirements, and ethical standards. The buyer and the seller have to agree to the Terms and Conditions.

5. Record keeping & reporting

eTIMS securely stores all Buyer Initiated Invoices and related transaction details, ensuring a complete and accurate record for compliance and audit purposes. Interactive dashboards allow users to monitor the status of invoices at any time, including pending, approved and rejected transactions.

Appendix 1: Links

Appendix 2: BII process flow diagram

A detailed flowchart illustrating each step in the Buyer Invoice Initiation (BII) process—from buyer login and invoice entry, through system validations, seller notifications, to final approval or rejection. This diagram provides a visual reference for stakeholders and technical teams.

Appendix 3: Sample validation rules

The PIN Checker verifies that the Buyer and Seller PINs conform to the valid format as per the tax authority’s standards. PIN must follow the structure defined by the KRA format, for example, `A123456789Z` and `P123456789Z`. The PIN starts with a letter `A` for individuals/sole proprietors and `P` for companies, followed by 9 digits and ends with a letter and must be exactly 11 characters. The system cross-checks the PIN against the tax authority database (KRA) to link to iTAX Database if API access is available

Taxpayers have been facilitated to self-on-board on eTIMS by eliminating the requirement for intervention from KRA in the approval of applications (service requests). Prior to installing any eTIMS Solution you are required to register for eTIMS by providing details regarding the nature of your business. A step by step guide for eTIMS registration has been provided for your use.

Once registered, here's how you onboard on the various solutions:

Step by Step on How to Onboard via the Online Portal

eTIMS Lite

KRA has provided simplified solutions referred to as eTIMS Lite tailor made for the small and micro taxpayers not registered for VAT (non-VAT taxpayers). The eTIMS Lite solutions facilitate the non VAT registered taxpayers to be able to onboard eTIMS and generate electronic invoices. The eTIMS Lite solutions include:

1. eTIMS Lite Web accessible via eCitizen
2. eTIMS Lite USSD accessible by dialing *222# (KRA Services)
3. eTIMS Lite Mobile App accessible on Play Store and Apple Store as eTIMS Non VAT

How to Onboard via eCitizen

How to Generate Invoices via eCitizen (web) and USSD (*222#)

What are the Solutions available on eTIMS?

In order to improve the user experience, eTIMS has been updated to enable taxpayers to register on more than one eTIMS solution in order to simultaneously generate invoices at their convenience. This has eliminated the need for KRA approval to facilitate change of solution or devices. However, for change of device under the same solution (eTIMS Client) one will require to be facilitated by KRA.

Taxpayers can access all invoices generated from the different eTIMS solutions, such as eTIMS Client, VSCU, OSCU, and eCitizen portal, through the online taxpayer portal (etims.kra.go.ke). Each solution will have its own unique invoice number sequence. However, credit notes can only be generated from the solution where the original invoice was raised.

The solutions available include:

• Online Portal – a web-based platform for invoicing accessible via etims.kra.go.ke
• eTIMS Client – a downloadable software that supports multiple branches and cashier tills/pay points. The software can be configured for both Windows and android devices, i.e. Windows based computers & laptops, android smart phones, tablets & Personal Digital Assistant (PDA) devices
• eTIMS Lite (Web) – a web-based solution accessible through eCitizen.
• eTIMS Lite (USSD) – accessed through the short code *222#. This solution is for individuals and sole proprietors.
• eTIMS Lite (Mobile app) – accessible on Play Store and Apple Store.
• eTIMS System to System Integration – This solution is tailored for businesses that have an invoicing system and would like to integrate with eTIMS i.e. Virtual Sales Control Unit (VSCU) and Online Sales Control Unit (OSCU).
• Reverse Invoicing and Buyer Initiated Solution – both solutions enable the buyer to generate a tax invoice on behalf of a seller.

eTIMS (electronic Tax Invoice Management System) is a software solution that provides taxpayers with options for a simple, convenient and flexible approach to electronic invoicing.

Taxpayers can access eTIMS on various computing devices, including computers, laptops, tablets, smartphones, and Personal Digital Assistants (PDAs).

Who Should Use eTIMS?

All persons engaged in business are required to on-board eTIMS and issue electronic tax invoices. However, where the supply is received from a small business enterprise (whose annual turnover does not exceed five million shillings), the purchaser shall issue a tax invoice on their behalf.

Persons in business include:

1. Companies, partnerships, sole proprietorships, associations, trusts etc.
2. Persons with income tax obligations including:
   – Monthly Rental Income (MRI) Tax

   – Turnover Over Tax (TOT)

   – Annual Income Tax – for Corporations, Partnerships and Individuals, both resident and non-residents with a permanent establishment.
3. Persons conducting business in various sectors, including the informal sector.
4. Persons in business whether or not registered for VAT. Persons in business but not required to register for VAT e.g. persons supplying VAT exempt goods and services such as hospitals supplying medical services, schools supplying education services, tours and travel agents, NGO’s in business etc are also required to on-board on eTIMS.

Why eTIMS?

1. It aids in reducing compliance costs as the solutions are provided free of charge;
2. eTIMS offers flexibility in the solutions available and is accessible on various computing devices;
3. The stock management module assists taxpayers maintain their own inventory;
4. eTIMS allows taxpayers to a maintain record of invoices issued on the taxpayer portal;
5. eTIMS facilitates simplified return filing for taxpayers.

What Business Expenses are excluded from eTIMS?

The following valid business costs have been excluded from the requirement of being supported by an eTIMS invoice:

1. emoluments (salaries & wages)
2. imports
3. air passenger ticketing
4. investment allowances
5. interest
6. fees charged by financial institutions
7. expenses subject to withholding tax that is a final tax
8. services provided by a non-resident person without a permanent establishment in Kenya