What a receipt is — and what KRA now expects
A receipt is proof that a customer paid you: what they bought, how much, and how they paid. Issuing one is basic professionalism, keeps your own records straight, and is often the difference between a customer trusting you and not.
For tax, the picture has changed. KRA’s eTIMS (electronic Tax Invoice Management System) now requires businesses to issue electronic tax invoices, and for a buyer to claim an expense against tax they generally need a compliant eTIMS invoice. A simple sales receipt like this one is ideal for everyday proof of payment and for customers who don’t need to claim the cost — but if you are VAT-registered, or your customer needs to deduct the expense, put the transaction through eTIMS as well.
Whatever the tax position, a receipt should clearly separate what was bought, the total paid and the method (cash, M-Pesa, bank), with a number you can trace back in your books.
What a proper receipt includes
- ◆Your business name and contacts (and KRA PIN if registered)
- ◆A receipt number and the date
- ◆Who paid — the customer
- ◆What was bought: item, quantity, price
- ◆The total, the amount paid, and any balance
- ◆The payment method — Cash, M-Pesa, bank transfer, cheque
Common mistakes to avoid
- ✕Not numbering receipts, so you can’t reconcile them against your sales
- ✕Writing only a total, with no record of what it was for
- ✕Forgetting the payment method — vital when you reconcile M-Pesa against cash
- ✕Assuming a hand-written receipt satisfies KRA — for tax-deductible sales, eTIMS is now the standard
Questions
Is a receipt the same as a tax invoice?
No. A receipt proves payment; a tax invoice is the KRA-compliant document (with your PIN, VAT and specific details) that a buyer uses to claim the expense. Under eTIMS, tax invoices are issued electronically. Use this receipt as proof of payment; issue the eTIMS invoice where the customer needs to claim the cost.
Do I need an ETR machine or eTIMS?
If you are VAT-registered you must issue invoices through KRA’s electronic system — historically ETR machines, now eTIMS, including the eTIMS app for smaller traders. Many non-VAT businesses are also being brought into eTIMS so their customers’ expenses stay deductible. This tool doesn’t replace eTIMS — it gives you a clean receipt for everyday use.
Can I issue a receipt for an M-Pesa payment?
Yes. Record the method as M-Pesa; some businesses also note the M-Pesa code. It ties the payment in your till to a specific customer and sale.
What receipt number should I use?
Any consistent, sequential scheme works — this tool suggests one like RCT-YYYYMMDD-XXX. The point is that every receipt is unique and traceable in your records.
Should I give a receipt even for small cash sales?
For your own books, wherever you can — it is how you know your daily takings are right. At minimum, receipt the sales that matter: credit sales, large amounts, and anything a customer might later query.
The sales receipt generator is free to build and preview. Downloading a clean PDF without the small watermark is KES 50 in Kenya — a one-off, valid for a few hours so you can make several — and free everywhere else. No account needed; your business details are saved on your own device.