Setup a Supplier

A supplier is an individual or organization that provides goods or services to a registered taxpayer. Suppliers may be local or international, and their details are recorded in eTIMS via Slade360 eTIMS APIs to ensure;

• Accurate tracking of procurement transactions
• VAT compliance, and
• Proper reporting to the Kenya Revenue Authority (KRA).

Setting up a supplier in eTIMS involves creating a detailed profile for the supplier, including their business and tax information. This is critical for streamlining purchases, ensuring VAT input claims, and maintaining compliance with tax regulations.

Why Set Up a Supplier in eTIMS via Slade360 eTIMS APIs?

1. Facilitates Input VAT Claims
   Ensures that VAT paid on purchases from registered suppliers can be accurately claimed during tax filing.
2. Streamlines Procurement Processes
   Keeps supplier details readily available for quick and efficient recording of purchase transactions.
3. Enhances Compliance
   Aligns with KRA requirements for electronic documentation of transactions.
4. Simplifies Audits
   Provides a clear and accessible record of suppliers for tax and financial audits.

Steps for Setting Up a Supplier

1. Enter Supplier Details
   Provide the necessary details about the supplier. The basic information is a follows:
   • Supplier Name
     The official name of the supplier’s business or entity.
   • Supplier Type
     Specify whether the supplier is local or international.
   • Tax Information
     • KRA PIN
       The supplier’s PIN if they are registered for VAT in Kenya.
     • VAT Registration Status
       Indicate if the supplier is VAT-registered.
2. Contact Details
   • Physical Address
     The supplier’s location for correspondence.
   • Email Address
     For electronic communications and invoice sharing.
   • Phone Number
     For direct communication.
   • Add Bank Details (Optional)
     For suppliers who require direct payments, input their bank account details to facilitate efficient transactions.
3. Save and Validate
   Review the entered details for accuracy. Save the supplier record, and the system will eTIMS via Slade360 eTIMS APIs will validate the information.
4. Assign the Supplier to Transactions
   Once set up, the supplier can be linked to purchase invoices, ensuring accurate record-keeping and VAT tracking.

Best Practices for Setting Up a Supplier

1. Verify Supplier Details
   Confirm the accuracy of the supplier’s tax and contact information before entering it into the system.
2. Classify Suppliers Correctly
   Clearly distinguish between VAT-registered and non-VAT-registered suppliers to ensure proper tax handling.
3. Regularly Update Records
   Periodically review and update supplier profiles to maintain accuracy and relevance.
4. Ensure Compliance
   Work only with VAT-compliant suppliers to maximize input VAT claims.

Benefits of Proper Supplier Setup

1. Improved Accuracy
   Ensures that purchase transactions are linked to the correct suppliers, minimizing errors.
2. Simplified Tax Filing
   Facilitates easy reconciliation of purchases and VAT claims during tax returns.
3. Enhanced Efficiency
   Streamlines procurement processes by maintaining an organized database of suppliers.
4. Better Audit Readiness
   Provides detailed and accurate supplier information for smooth audit processes.

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Why is Supplier Setup Important?

By properly setting up suppliers in eTIMS via Slade360 eTIMS APIs, businesses can enhance their procurement workflows, maintain compliance with KRA regulations, and ensure transparency in their financial operations.