How importing and eTIMS connect
When you import, you pay import duty and import VAT at customs based on the customs value of your goods. That import VAT is generally claimable as input VAT if you are VAT registered, which reduces what you ultimately remit. To claim it cleanly, your records have to connect the import documents to the eTIMS invoices you issue on resale.
On the sales side, every time you sell imported stock you issue a compliant eTIMS invoice, charging output VAT where applicable. The difference between the output VAT you collect and the input VAT you paid (including at import) is what you settle with KRA. Clean eTIMS invoicing is what makes that calculation defensible.
It helps to remember that the import VAT you pay at customs is only claimable if you can evidence it and tie it to your business. That means holding the customs entry and the import VAT documents, and connecting them to the eTIMS invoices you issue when the goods sell. Without that chain, an input VAT claim is hard to defend if KRA asks you to prove it.
Keeping importer records clean with eTIMS
The goal is one unbroken chain from the customs entry to the sale, so every shilling of VAT is accounted for.
- 1
Capture your import costs
Record the customs value, import duty and import VAT for each consignment, so you know your true landed cost.
- 2
Price for a healthy margin
Build your selling price on the landed cost, not just the supplier price, so duty and VAT do not quietly eat your margin.
- 3
Issue compliant invoices on every sale
Each resale produces a compliant eTIMS invoice with output VAT where applicable, feeding your VAT return.
- 4
Match input and output VAT
Reconcile the import VAT you paid against the output VAT you collect, so your VAT return reflects the real position.
- 5
Keep documents linked
Hold your import documents alongside your eTIMS records so the chain from port to sale is easy to evidence.
Importer eTIMS mistakes
Ignoring landed cost when pricing
Pricing on the supplier invoice alone, before duty and VAT, can wipe out your margin. Always price on landed cost.
Not linking import VAT to sales
If you cannot connect import VAT to your sales records, claiming it cleanly becomes difficult and risky.
Treating exchange rates loosely
Imports are priced in foreign currency. Sloppy conversion distorts your costs. Use a consistent, defensible rate.
Discarding customs paperwork
The customs entry and import VAT receipt are what prove your input VAT claim. Lose them and you may pay VAT you were entitled to reclaim, simply because you cannot evidence it.
An importer’s margin and VAT
An importer brings in electronics with a customs value of KES 1,000,000. Duty and import VAT are calculated on that value, so the landed cost is meaningfully higher than the supplier price. If the importer is VAT registered, the import VAT is claimable as input VAT.
When the goods sell, each compliant eTIMS invoice charges output VAT. At the VAT return, the importer offsets the input VAT paid at the port against the output VAT collected on sales. Pricing on the full landed cost protects the margin, and the import duty calculator and currency converter help pin down both the duty and the converted cost before the goods even arrive.
Suppose the consignment carried KES 160,000 of import VAT. If the importer keeps the customs documents and links them to the eTIMS invoices issued on resale, that KES 160,000 offsets the output VAT collected, and only the difference is remitted. Lose the paperwork and that same KES 160,000 can become an unrecoverable cost, which is the difference between a healthy margin and a thin one.
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.
Veira for importers and wholesalers
Veira issues compliant eTIMS invoices on every sale and keeps your sales and VAT records in one place, so reconciling output VAT against the input VAT you paid at import is far easier at filing time.
It also tracks stock and margins, so you can see whether your pricing covers the full landed cost of imported goods, not just the supplier price. That keeps imported lines genuinely profitable.
When your sales invoices and stock records live in one system, matching them back to a consignment is straightforward, so the input VAT you paid at the port is easy to evidence at filing time. The chain from customs entry to final sale stays intact without a manual spreadsheet.
Frequently asked questions
How does eTIMS affect importers?
Can I claim import VAT as input VAT?
What is landed cost and why does it matter?
How do I handle foreign currency on imports?
Do I issue eTIMS invoices for every resale?
How do I estimate duty before importing?
What documents prove my import VAT claim?
What happens if I lose my customs paperwork?
For importers, eTIMS is the link that turns port costs into clean, claimable VAT and protected margins. Capture landed cost, price on it, issue compliant invoices on every sale, and reconcile your VAT. Estimate duty and currency up front with the free tools, then book a free demo to keep your imports, sales and VAT in one tidy system.