🧾 Business & Money Documents

How to Make a KRA-Compliant Tax Invoice with eTIMS in Kenya (2026)

The pain: Buyers reject your Word or Excel invoices because they carry no eTIMS CU number or QR code, so they cannot deduct the expense.

The outcome: A valid eTIMS tax invoice with the CU serial, CU invoice number and scannable QR code that your customers can claim against tax.

Since 1 January 2024 an expense is only tax-deductible if backed by a valid eTIMS invoice, and ALL businesses, including non-VAT ones, must invoice through eTIMS.

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What a valid tax invoice must contain

The words 'TAX INVOICE', a unique sequential invoice number, and the date.
Seller's name, address and KRA PIN; buyer's name, address and PIN (the buyer PIN is required for B2B and input-VAT claims).
Description, quantity and unit price of each item, and any discount.
Taxable value, VAT rate (standard 16%) and VAT amount, and the VAT-inclusive total.
The eTIMS stamp: Control Unit (CU) serial number, CU invoice number and a scannable QR code, which make it valid for deduction.

⚠️ Only VAT-registered businesses charge the 16% VAT. Non-VAT businesses still must issue eTIMS invoices, but without adding VAT.

How to register for eTIMS (small business or freelancer options)

1Have an active KRA PIN and iTax access.
2Choose an eTIMS Lite channel: dial *222# (USSD), use eTIMS Lite Web via eCitizen, or download the 'eTIMS Non VAT' app. VAT-registered or high-volume businesses use full eTIMS software integration.
3Register your items or products in eTIMS (code, description, unit, price, tax type), which is required before you can invoice.
4Create the invoice, capturing the buyer's PIN for B2B sales; eTIMS returns the CU number and QR code.
5Issue the stamped invoice; the data auto-transmits to KRA and pre-fills your VAT return.

Fill-in template: tax invoice

Heading: TAX INVOICE
Seller name / business name
Seller address & contacts
Seller KRA PIN
Invoice number (sequential) | Invoice date
Buyer name & address
Buyer KRA PIN (for B2B)
Line items: No. | Description | Qty | Unit price | Discount | Taxable amount | VAT 16% | Line total
Subtotal (excl. VAT) | Total VAT (16%) | TOTAL DUE (incl. VAT)
Payment terms / due date / M-Pesa Till or bank details
eTIMS Control Unit serial number | CU invoice number | QR code
Authorised signature / stamp

Common mistakes to avoid

Issuing manual Word or Excel invoices with no CU number or QR, so buyers cannot deduct the expense and will refuse them.
Missing the buyer's PIN on B2B sales, which breaks their input-VAT claim.
Charging 16% VAT when you are not VAT-registered.
Non-sequential or duplicated invoice numbers.
Trying to invoice before registering your items in eTIMS.

Ready to act? Use these free tools

Invoice Generator →

Build an eTIMS-ready tax invoice with your PIN, line items and 16% VAT as a clean PDF. Free.

Receipt Generator →

Issue an official receipt the moment payment lands, referencing the invoice it settles. Free.

Duka →

Run your shop's sales and stock so your invoices and receipts stay consistent. Free.

Questions people ask

Do non-VAT businesses need an eTIMS invoice in Kenya?

Yes. Under the electronic tax invoice rules, all businesses, including those not registered for VAT, must generate invoices through eTIMS. Non-VAT businesses issue eTIMS invoices but do not add the 16% VAT.

Why do my customers reject my Word or Excel invoices?

Because they have no Control Unit number or QR code. Since 1 January 2024 an expense is only tax-deductible if backed by a valid eTIMS invoice, so buyers cannot claim the cost and will refuse a manual invoice.

How do I register for eTIMS as a small business?

With an active KRA PIN and iTax access, choose an eTIMS Lite channel: dial *222#, use eTIMS Lite Web via eCitizen, or download the 'eTIMS Non VAT' app. Then register your items before you invoice.

Keep it current: VAT is 16% and eTIMS is mandatory as described, but tax rules change with each Finance Act. Confirm current rules and your obligations on kra.go.ke before invoicing.

Official sources

KRA eTIMS ↗
KRA public notice on electronic tax invoicing for non-VAT persons