Free Online Invoice Generator Kenya

Yes, under Section 23A of the Tax Procedures Act, all persons conducting business in Kenya must onboard onto eTIMS and issue electronic tax invoices, regardless of whether they are registered for VAT.

Under Section 16 of the Income Tax Act, buyers cannot claim business expenses for corporate tax deductions unless the invoice has been transmitted through KRA eTIMS.

Without a valid KRA PIN, the invoice cannot be validated on eTIMS, and the purchasing business will have the entire expense disallowed during KRA tax audits.

Corporate accounts payable departments in Kenya will routinely reject invoices that omit either the supplier PIN or the buyer PIN to protect their own allowable tax deductions.

Designated withholding VAT agents deduct 2% of the taxable value from your invoice total and remit it directly to KRA on your behalf.

The client generates an automated Withholding VAT Certificate on iTax, which you use to offset your 16% output VAT liability when submitting your monthly VAT return by the 20th of the following month.

An M-Pesa Buy Goods Till is typically merchant-funded with no customer reference prompt, while an M-Pesa Paybill requires the buyer to enter an Account Number (such as your invoice number).

For B2B commercial invoices, Paybill accounts are preferred because the client enters the exact invoice serial number as the account reference, simplifying accounts receivable reconciliation.

Record the full invoice subtotal as revenue, treat the 5% deducted WHT as an advance tax asset (prepaid tax), and match the cash received to the remaining 95%.

The corporate client must furnish you with a KRA WHT Certificate on iTax, which directly reduces your year-end corporate income tax or installment tax payments.

Yes, credit notes and debit notes must reference the original eTIMS invoice number and Control Unit Code and be transmitted to KRA within 6 months of the original supply.

This ensures both the supplier's output VAT and the buyer's input VAT are correctly adjusted in KRA's central electronic ledger.