The Tax Invoice Management System (TIMS) is an upgrade of the current Electronic Tax Register (ETR). It facilitates Electronic Tax Invoice management through standardization, validation, and transmission of structured invoices to KRA in real-time or near real-time. It connects your business to the taxman, preventing fraud and improving cash flow.
The Tax Invoice Management System (TIMS) aims at plugging loopholes resulting from weaknesses in this regime through:
- Integration with trader systems, i.e. ECRs, Point of Sale system (POS), and ERP.
- Standardization and authentication of tax invoices issued by taxpayers and transmission to KRA on a real-time or near real-time basis.
- Tax Invoice Management System (TIMS) is an integrated module within iTax and will facilitate automated VAT returns.
- Secure and encrypted tax invoice data as per regulations.
- Verification of the validity of a Tax Invoice by KRA officers, traders, and the general public through the TAX Invoice QR Code or Tax Invoice Checker on the iTax portal
Tax Invoice Management System (TIMS) is a falsification-proof system and is regulated by the VALUE ADDED TAX (ELECTRONIC TAX INVOICE) REGULATIONS of 2022.
We have three different types of Tax Invoice Management systems, that is Type A, B, and C, and this is how they work.
- Type A-Refers to a Control Unit that operates with inbuilt functionality to generate, validate, and transmit tax invoices/receipts to KRA. It is suited for traders whose sales are via handwritten receipt.
- Type B –Refers to two variants of a Control Unit for Retail Applications (Point of Sale) and Hospitality.
- A centralized Control Unit (server version) connects to multiple Point of Sale terminals with no redundancy or fallback on downtime.
- One-to-one – Control Unit connects to each Point of Sale terminal and is assured of one hundred percent (100) % uptime for mission-critical business operations.
3. Type C – Refers to (Control Unit) that connects to a software invoicing system (ERP). It is suited to businesses that have automated their invoicing and are currently using an electronic signature device.
In conclusion, Tax Invoice Management System (TIMS) is meant to help your business minimize VAT fraud, increase VAT compliance, and increase tax revenue