Create Purchases

In the eTIMS system, purchases refer to the acquisition of goods or services by a registered taxpayer, either for resale, production, or operational use. Recording purchases in eTIMS ensures accurate tracking of procurement activities and compliance with Kenya Revenue Authority (KRA) regulations, particularly for VAT reporting and input tax claims.

The process of creating purchases in eTIMS involves documenting the details of the goods or services acquired, their associated costs, and any applicable taxes. This information is critical for maintaining accurate financial records and ensuring tax compliance.

Why Record Purchases in eTIMS Via Slade360 eTIMS APIs?

1. Input VAT Claims
   Enables businesses to recover VAT paid on eligible purchases during tax filing.
2. Regulatory Compliance
   Meets KRA requirements for documenting all transactions electronically.
3. Accurate Financial Reporting
   Provides a clear view of business expenses and procurement activities.
   Audit Trail
4. Audit Trail
   Ensures proper documentation for internal and external audits.

Steps for Creating Purchases

1. Add Supplier Details
   Enter information about the supplier, including:
   • Supplier Name
   • KRA PIN (for VAT-registered suppliers)
   • Country of item/product origin
   • Address and Contact Details
2. Enter Invoice Information
   Input details of the purchase invoice issued by the supplier. They include:
   • Invoice Number (from the supplier’s invoice)
   • Invoice Date
   • Description of Goods or Services
3. Provide Tax Details
   Enter tax-related information. This includes the following:
   • VAT Amount
     The tax paid on the purchase, eligible for deduction.
   • Tax Category
     Indicate if the purchase is standard-rated, zero-rated, or tax-exempt.
4. Itemize Purchases
   Break down the purchase details, specifying the following:
   • Item Names or Service Descriptions
   • Quantities
   • Unit Prices
   • Total Amounts (with and without VAT)
5. Save and Validate
   Once you save the record and submit it to Slade360 eTIMS APIs, the system will validate the purchase details and associate them with your tax profile.
6. Generate a Purchase Record
   Once validated, eTIMS via Slade360 eTIMS APIs generates a unique purchase record for future reference and reporting.

Best Practices for Recording eTIMS Compliant Purchases

1. Verify Supplier Details
   Ensure the supplier is registered with the KRA and that their details match the invoice provided.
2. Record Purchases Promptly
   Enter purchase details as transactions occur to avoid delays or inaccuracies.
3. Maintain Accurate Descriptions
   Clearly describe goods or services to facilitate transparency and compliance during audits.
4. Reconcile Regularly
   Periodically reconcile your eTIMS purchase records with your internal accounts for consistency.

Benefits of Recording Purchases in eTIMS via Slade360 eTIMS APIs

1. Efficient Tax Management
   Automates VAT tracking and reduces errors in tax filing.
2. Improved Transparency
   Keeps procurement activities well-documented and traceable.
3. Enhanced Compliance
   Meets KRA’s electronic tax requirements, minimizing the risk of penalties.
4. Simplified Audits
   Provides an organized and accessible record for both internal and external audits.

For detailed insights, please visit: Purchases.

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Why Record Purchases Via Slade360 eTIMS APIs?

By recording purchases in eTIMS via Slade360 APIs, your businesses can streamline their financial operations, ensure tax compliance, and gain better control over their procurement processes.

This practice is essential for any business aiming to operate transparently and efficiently within the KRA framework.