The Kenya Revenue Authority (KRA) has finalized the enhancements to the i-TAX system aimed at strengthening compliance with the Electronic Tax Invoice Management System (e-TIMS).
With effect from 1st January 2026, the Annual Income Tax Returns are now automatically validated against sales and purchases data transmitted through eTIMS. Any inconsistencies identified during filing will result in system-generated errors, preventing submission return until the discrepancies are resolved.
1. Validation of Declared Turnover
Where the gross income declared in the Annual Income Tax Return is lower than the total turnover transmitted through eTIMS, the i-TAX system will generate the following error message:
“The Total Turnover from eTims/TIMS invoices of KShs. XXXXXX is higher than the Gross Income declared in the annual tax return. Please declare the correct Turnover and proceed with filing. For further clarification and support kindly liaise with your respective Tax Service Office or the KRA Contact Centre.”
2. Validation of Purchases and Expenditure
Where the total purchases or expenses claimed exceed, the value supported by e-TIMS purchase invoices (excluding exempt expenditure), the system will generate the following error message:
“The Total Purchases/Expenses as per the eTims/TIMS invoices of KShs. XXXXX excluding exemptions is less than what has been claimed in the return. Please claim the correct amount and proceed with filing. For further clarification and support kindly liaise with your respective Tax Service Office or the KRA Contact Centre.”
Advisory to Taxpayers
- Reconcile e-TIMS sales and purchase data prior to filing Annual Income Tax Returns.
- Ensure consistency between accounting records and e-TIMS transmissions.
- Seek clarification from Tax Experts or KRA.
- Going forward, employ a Data/Document officer to ensure proper record keeping and transmission to minimize on the tax exposure.
