What exemption means and why it is narrow
An exemption from eTIMS would mean a business is not required to issue electronic tax invoices through the system. In practice KRA has steadily widened the requirement so that it covers businesses in general, not only VAT-registered ones, which makes genuine exemptions narrow. Most traders who once assumed they were too small are now within scope.
There is also a difference between an exempt business and exempt supplies. Some goods and services are VAT-exempt or zero-rated, which affects the tax type on the invoice, but the business may still have to issue an eTIMS invoice for the sale. Confusing "my goods are exempt" with "I am exempt from eTIMS" is a common and costly error.
Because the rules are specific and have been tightening, the safe assumption is that you must comply unless KRA has explicitly told you otherwise. Treat exemption as something to confirm, not assume.
Who may be treated differently, and who must comply
These are the broad categories. Confirm your own position with KRA.
- 1
Most businesses must comply
If you make sales, the default is that you must issue eTIMS-compliant invoices. KRA has extended the requirement beyond VAT-registered businesses, so size alone no longer makes you exempt.
- 2
Exempt and zero-rated supplies still need invoices
Selling VAT-exempt or zero-rated goods affects the tax type on the invoice, but you generally still issue an eTIMS invoice for the sale. Exempt supplies are not the same as exemption from eTIMS.
- 3
Specific categories KRA may treat differently
KRA has, at times, provided simplified processes or transitional arrangements for certain very small or specific taxpayers. These are limited and defined by KRA, not by self-assessment.
- 4
Employment income is not a sale
Earning a salary is not making a sale, so eTIMS invoicing does not apply to your wages. It applies to business sales of goods and services.
- 5
Confirm, do not assume
Because the rules are specific and change, confirm your status with KRA or a tax professional. Assuming you are exempt and being wrong leads to penalties.
Common exemption mistakes
Assuming "too small to comply"
Many small traders assumed they were below the threshold, but KRA has extended eTIMS broadly. Being small is rarely a basis for exemption now.
Confusing exempt supplies with business exemption
Selling exempt or zero-rated goods changes the tax type, not your duty to issue an eTIMS invoice. You usually still invoice through eTIMS.
Relying on hearsay
Exemption claims spread informally between traders and are often wrong. Rely on KRA guidance or a tax professional, not the shop next door.
Ignoring a KRA notice
If KRA writes to you about eTIMS, you are within scope. Ignoring it on the assumption of exemption is the most expensive mistake.
Not documenting your position
If you genuinely have a special arrangement, keep the KRA documentation. An undocumented claim of exemption will not protect you in an audit.
A trader checks instead of assuming
A small trader in Nairobi assumed she was too small for eTIMS and ignored the topic. A colleague told her the same. Then she received a KRA reminder and realised her assumption was wrong.
Rather than guess further, she confirmed with KRA that she was within scope, and learned that even the few exempt goods she sold still needed eTIMS invoices, just with the correct tax type.
She set up certified software and became compliant before any penalty arose. Checking, rather than assuming, saved her from a costly mistake that her colleague was still making.
Trading without eTIMS-compliant tax invoices risks KRA penalties, blocked VAT input claims for your customers, and receipts a business buyer cannot expense.
Veira signs every sale to KRA eTIMS automatically, so each receipt is compliant the moment it prints, with no separate device to reconcile.
How Veira makes this automatic
Veira is a KRA-certified eTIMS integrator, listed on the official kra.go.ke certified software page. When you ring up a sale, Veira generates the compliant invoice, applies the right item code and tax type, transmits it to KRA, receives the control number, and prints the receipt with a QR code, automatically and offline-capable. Your VAT return reconciles with your eTIMS data with no manual matching.
It runs on a phone you already own or an affordable terminal from KES 2,999 a month, and it sits in the same app as your M-Pesa payments, stock and reporting. The hardest parts of eTIMS, getting the invoice, the codes and the timing right, become a guided setup step rather than a recurring worry.
Frequently asked questions
Who is exempt from eTIMS in Kenya?
Are small businesses exempt from eTIMS?
If my goods are VAT-exempt, am I exempt from eTIMS?
Does eTIMS apply to my salary?
How do I confirm whether I am exempt?
What happens if I wrongly assume I am exempt?
eTIMS exemptions are narrow, and assuming you qualify is a risky bet. The safe path is to confirm with KRA and, in almost all cases, to comply. Veira makes compliance effortless and affordable, certified, automatic and from KES 2,999 a month, so you do not need an exemption to stay out of trouble. Run the free readiness check and book a free demo.