How eTIMS applies to exports
Exporters record their sales through compliant eTIMS invoices like any business, but with a specific VAT angle: exports are typically zero-rated, meaning a taxable supply at 0%, rather than standard-rated. That treatment is valuable because it lets exporters reclaim input VAT, but it has to be applied correctly and supported.
The key for an exporter is that zero-rating is not automatic on the say-so of the invoice; it must be backed by proper export documentation that shows the goods actually left the country. So an export sale carries the correct zero-rated treatment on the eTIMS invoice, and the exporter keeps the supporting export evidence to substantiate it. Because export VAT rules and documentation requirements are specific and change, confirm them with KRA.
Getting the basics right once means compliance runs quietly in the background of your business.
How exporters keep compliant
A practical path for a Kenyan business.
- 1
Apply the correct zero-rated treatment
Set export sales to the correct zero-rated treatment on the eTIMS invoice, distinct from standard-rated local sales.
- 2
Keep export documentation
Retain the export documentation that supports zero-rating, showing the goods left the country, to substantiate the treatment.
- 3
Separate export and local sales
Keep export and local sales clearly distinguished in your records, since their VAT treatment differs.
- 4
Reconcile for input VAT recovery
Reconcile so the input VAT you reclaim against zero-rated exports is supported by compliant purchase invoices.
Common mistakes to avoid
Zero-rating without documentation
Zero-rating must be supported by proper export evidence. Applying it without the documentation puts the treatment at risk.
Mixing export and local sales
Their VAT treatment differs. Keep export and local sales clearly separated in your records.
Assuming all foreign sales are zero-rated
The rules are specific. Confirm which sales qualify for zero-rating, and the documentation needed, with KRA.
An exporter substantiates zero-rating
An exporter in Mombasa sold goods abroad and applied zero-rating on the eTIMS invoices, but had been casual about keeping the export documentation.
They tightened up: each export sale carried the correct zero-rated treatment, and the supporting export evidence was retained against each invoice.
With the documentation in place, the zero-rating was substantiated, input VAT recovery held up, and export and local sales were cleanly separated in the records.
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 simple
Veira is built for Kenyan businesses. It issues compliant KRA eTIMS invoices automatically on every sale, applies the right tax treatment per item, captures the buyer KRA PIN, keeps your records reconciled and ready for filing, and reconciles M-Pesa and Pochi payments to each sale.
It runs on a free handheld terminal or the phone you already own, keeps working offline, and runs from KES 2,999 a month with a free terminal and a 30-day money-back guarantee. See how Veira works, or book a free demo.
Frequently asked questions
Do exporters need eTIMS?
Are exports zero-rated for VAT in Kenya?
What documentation supports zero-rating?
How do I handle export and local sales together?
Does Veira handle this for me?
Where do I confirm the current rules?
eTIMS for exporters is straightforward once you know the essentials, and with a compliant system like Veira the day-to-day part is handled for you. See how Veira works, or book a free demo. Always confirm current KRA rules and rates at kra.go.ke, as they can change.