VAT Invoice (eTIMS) vs Ordinary Receipt: feature by feature
| VAT Invoice (eTIMS) | Ordinary Receipt | |
|---|---|---|
| Legal status | KRA-recognised tax document | Proof of payment only |
| KRA control number | Yes, required | No |
| Buyer can claim input VAT | Yes | No |
| Required for business expense | Yes, from 2024 for deductibility | No longer sufficient alone |
| Issued by | Any eTIMS-enrolled business | Any seller |
| Format | eTIMS-generated, digital or printed | Any format |
How to choose
Choose VAT Invoice (eTIMS) if
- Always, for any sale where the buyer is a registered business or needs a tax record
- Any sale where eTIMS enrolment is required for your business type
Choose Ordinary Receipt if
- An ordinary receipt on top of the eTIMS invoice as a user-friendly summary is fine, but it does not replace the eTIMS invoice
More detail
Since 2024, KRA requires that business expenses be backed by an eTIMS-generated invoice to be deductible. A handwritten receipt or a printed-but-not-filed receipt no longer qualifies.
The practical impact is that your business customers will increasingly refuse to pay unless you can issue a compliant eTIMS invoice. It is a commercial as much as a legal requirement.
Free tools for this
Frequently asked questions
Can I issue an eTIMS invoice and a paper receipt?
Yes. Many businesses print the eTIMS invoice (which has the KRA control number) and that serves as both.
What happens if I only issue a plain receipt?
Your buyer cannot claim input VAT and, from 2024, the expense may not be deductible. It can also lead to KRA penalties for you.
Veira combines POS, M-Pesa, KRA eTIMS and inventory in one app with a free terminal. Book a demo and see how it fits your trade.