Signed Sales Invoice

An eTIMS-signed sales invoice is an official document issued through the eTIMS system, serving as proof of a transaction between a seller and a buyer. This invoice is digitally signed to ensure authenticity, integrity, and compliance with the Kenya Revenue Authority (KRA) regulations for electronic invoicing.

Key Features of an eTIMS-Signed Sales Invoice

1. Digital Signature
   The eTIMS system digitally signs each sales invoice, certifying its authenticity and preventing unauthorized modifications.
   The signature is a seal of compliance with KRA requirements for electronic tax documentation.
2. Unique Invoice Number
   Every eTIMS invoice is assigned a unique identifier for accurate tracking and reconciliation.
   This ensures no duplicate invoices can exist within the system.
3. Tax Compliance
   The invoice automatically includes the applicable tax details, such as VAT or other relevant taxes, calculated in compliance with KRA standards.
   Tax amounts are clearly indicated to simplify reporting for both parties.
4. Itemized Breakdown
   The invoice provides a detailed breakdown of the products or services sold, including descriptions, quantities, unit prices, and total amounts.
   Discounts, if any, are clearly stated to ensure transparency.
5. Time-Stamped Validation
   The invoice includes a timestamp showing the exact date and time of issuance, critical for audit trails and regulatory compliance.
6. Buyer and Seller Details
   It contains essential information about the buyer and seller, including business names, PINs, addresses, and contact details, as required by KRA.

When to Issue an eTIMS-Signed Sales Invoice

An eTIMS sales invoice is mandatory in the following situations:

1. Sale of taxable goods or services.
2. Export of goods or services.
3. Transactions requiring documentation for input tax claims or regulatory compliance.

Steps to Generate an eTIMS-Signed Sales Invoice

1. Enter Transaction Details
   Provide details such as:
   • Buyer information (name, PIN, contact).
   • Product or service descriptions, quantities, unit prices, and applicable discounts.
   • Tax details (e.g., VAT).
2. Submit for Processing
   Confirm the details and submit the invoice for system processing.
3. Generate and Digitally Sign the Invoice
   The eTIMS system will validate the data, calculate the taxes, and digitally sign the invoice.
4. Share with the Buyer
   Issue the signed sales invoice to the customer via print or electronic delivery.

Advantages of an eTIMS-Signed Sales Invoice

1. Regulatory Compliance
   Ensures adherence to KRA’s regulations for invoicing and tax reporting.
2. Enhanced Accuracy
   Automated tax calculations minimize errors in tax reporting.
3. Transparency
   Detailed itemization builds trust between buyers and sellers.
4. Audit Readiness
   Digitally signed invoices are easy to track and validate during audits, ensuring smooth regulatory checks.
5. Fraud Prevention
   Unique identifiers and digital signatures protect against invoice forgery or tampering.

Components of an eTIMS-Signed Sales Invoice

1. Header
   Invoice number, date, and your company logo.
2. Seller Details
   Business name, KRA PIN, address, and contact information.
3. Buyer Details
   Name, address, and contact details (optional for retail transactions).
4. Itemized List
   Product or service descriptions, quantities, unit prices, and totals.
5. Tax Breakdown
   Clear segregation of VAT and any other taxes.
6. Total Amount
   Total payable amount, inclusive of taxes.
7. Digital Signature
   eTIMS signature seal for authenticity.

For more in-depth information, please visit: Sales.

Sample of a signed sales invoice

By using an eTIMS-signed sales invoice, businesses streamline their operations, maintain transparency with customers, and comply with Kenya’s tax regulations. It is a crucial tool for ensuring trust and efficiency in financial transactions.