KRA Clarifies Tax Invoice Rules for Government Suppliers Using IFMIS

The Kenya Revenue Authority (KRA) has confirmed that government suppliers can use valid tax invoices generated through eTIMS or TIMS. The clarification addresses concerns among businesses seeking payment for goods and services supplied to public institutions.

In a public notice issued on Thursday, October 15, KRA said it developed the arrangement alongside the National Treasury. The agency explained that the integration with the Integrated Financial Management Information System (IFMIS) supports invoices from both platforms.

The announcement provides fresh guidance for businesses navigating government payment procedures. Suppliers must still ensure their invoices satisfy the required validation standards before IFMIS processes their payments.

KRA Explains How the Integrated System Works

KRA introduced the clarification following questions about which electronic invoicing systems government suppliers can use. The authority confirmed that the integration supports both the Electronic Tax Invoice Management System (eTIMS) and the Tax Invoice Management System (TIMS).

The clarification expands on earlier guidance that focused on eTIMS integration with IFMIS. That announcement left some suppliers uncertain about whether the system also accepted valid TIMS invoices.

KRA has now confirmed that suppliers do not need to rely exclusively on eTIMS. However, businesses must ensure their invoices meet the applicable requirements before submitting them for payment.

The distinction matters for companies that already use TIMS to generate tax invoices. The updated guidance helps clarify their position when seeking payment through government financial systems.

Why KRA Integrated eTIMS With IFMIS

In August, KRA announced the integration of eTIMS with IFMIS to improve invoice verification. The arrangement supports checks on tax invoices submitted by businesses supplying goods and services to government institutions.

The system also aims to strengthen accountability in transactions involving public funds. Automated verification helps authorities examine invoices and identify discrepancies before payments proceed.

KRA previously instructed suppliers to ensure their invoice details matched records generated and stored in eTIMS. Differences between submitted invoices and recorded information could create complications during payment processing.

The latest notice reinforces the importance of accurate documentation under the integrated system. Suppliers should therefore review their invoices carefully before submitting claims through IFMIS.

What Government Suppliers Need to Know

Businesses supplying public institutions can use either platform, provided their invoices meet the required validation standards. KRA emphasised that invoices must pass these checks before entering the payment stage.

The clarification gives suppliers using TIMS greater certainty when preparing documentation for government transactions. It also helps businesses understand the requirements they must satisfy when seeking payment for completed supplies.

KRA said it would continue working with the National Treasury to support implementation. The two institutions will also assist government agencies and businesses using the integrated system.

Suppliers experiencing difficulties with invoice validation can contact KRA through its official customer support channels. Businesses should seek clarification directly from the authority when encountering problems with their invoices or payment processing.

The announcement offers important guidance to companies working with government institutions. Nevertheless, suppliers must continue meeting tax compliance requirements and ensuring their invoices contain accurate information.