KRA eTIMS · Tax Compliance · VAT Returns · Built for Kenya
KRA eTIMS Compliant POS System in Kenya 2026
Since January 2026, the Kenya Revenue Authority enforces the "No eTIMS, No Expense" rule: any business that cannot produce a KRA-verified eTIMS invoice risks penalties of up to KSh 1,000,000, and buyers who receive non-compliant invoices cannot claim input VAT. If your POS system does not automatically submit every sale to the KRA eTIMS portal in real time, you are already exposed. Nexlev Retail is fully eTIMS compliant and submits every invoice to KRA the moment the sale is completed — with zero manual action from you.
Plain English Explanation
What is KRA eTIMS? (And Why It Replaced ETR Machines)
The Old System: ETR Machines
ETR (Electronic Tax Register) machines were physical devices that printed receipts with a KRA serial number. They were expensive (KSh 40,000–80,000+), required periodic calibration, and could only be used in-store. Many businesses still have ETR machines sitting unused on counters.
KRA phased out the requirement for physical ETR machines because they were slow to deploy, difficult to monitor, and easy to work around. Starting in 2022, KRA began rolling out eTIMS — the Electronic Tax Invoice Management System — as the modern replacement.
The New System: eTIMS (OSCU & VSCU)
eTIMS has two types. OSCU (Online Sales Control Unit) is a physical device for businesses that need hardware integration with weighing scales or petrol dispensers. VSCU (Virtual Sales Control Unit) is pure software — it connects your POS system directly to the KRA eTIMS API. No device. No monthly fees to KRA. Just an API connection.
Nexlev Retail operates as a VSCU. Every sale you record goes via the KRA eTIMS API in real time. The receipt automatically carries the KRA QR code that proves compliance. You get a full audit trail in the KRA portal — all without any manual action.
January 2026: "No eTIMS, No Expense" is now enforced.
KRA now rejects input VAT claims for any purchase where the seller's invoice does not carry a valid KRA eTIMS QR code. If you issue non-compliant invoices, your business customers cannot deduct the purchase from their tax. This means they will stop buying from you and go to a competitor who IS eTIMS compliant.
Zero Manual Steps
How Nexlev Retail Handles KRA eTIMS Automatically
Every step from sale to KRA portal submission happens automatically. The cashier does not touch the eTIMS process at all.
Cashier Completes Sale
Items scanned, total shown, payment accepted. Cashier does their normal job — no extra step for eTIMS.
Invoice Auto-Generated
Nexlev automatically creates a KRA eTIMS-compliant invoice with all required fields: seller PIN, buyer PIN (if B2B), item classification codes, VAT amount, and total.
Submitted to KRA API
The invoice is transmitted to the KRA eTIMS server via secure API. KRA validates and confirms it within milliseconds.
KRA QR Code on Receipt
The receipt is printed with the KRA QR code already on it. Customers can scan it instantly on the KRA Taxpayers portal to verify the invoice.
Offline Queuing
If the internet is down, invoices queue locally on your device. When connectivity returns, all queued invoices are auto-submitted to KRA — nothing is ever missed.
Full Audit Trail
Every invoice is logged in Nexlev Retail's back office AND visible in the KRA eTIMS portal. VAT returns become straightforward — all data is already submitted.
See the Difference
KRA eTIMS Compliance — Nexlev Retail vs Other Options
| Compliance Factor | Old ETR Machine | Manual / No System | Basic POS (No eTIMS) | Nexlev Retail ✅ |
|---|---|---|---|---|
| KRA eTIMS API submission | No | No | No | Yes — real time |
| KRA QR code on receipt | No (ETR serial only) | No | No | Yes — automatic |
| Offline invoice queuing | N/A | N/A | No | Yes |
| No manual CSV upload | No | No | No | Yes |
| B2B buyer PIN on invoice | No | No | No | Yes |
| HS/KRA item codes auto-mapped | No | No | No | Yes |
| VAT auto-calculated per item | Partial | Manual | Partial | Yes — all tax types |
| Hardware / extra device needed | Yes (ETR machine) | N/A | No | No |
| Works across multiple branches | One per device | No | Varies | Yes — all branches |
| Risk of KSh 1M penalty | High | Very high | High | None |
Two Compliance Problems. One System.
eTIMS + M-Pesa: Both Solved in One POS
Kenyan retailers face two major technology compliance challenges simultaneously: accepting M-Pesa payments correctly (with STK Push auto-confirmation rather than manual SMS checking) and issuing KRA eTIMS-compliant invoices for every sale. Both requirements have penalties for non-compliance. Both slow down operations if handled manually.
Nexlev Retail solves both in a single moment. When a customer pays via M-Pesa STK Push, the payment is confirmed AND the eTIMS invoice is auto-submitted to KRA — simultaneously, in the same 3-5 second window. There is no second step, no separate system for eTIMS, and no manual invoice creation. It all happens at the point of sale, automatically.
This integrated approach applies across all business types: supermarkets, minimarts, pharmacies, and more. Every payment method — M-Pesa, cash, card — generates a compliant eTIMS invoice. Learn more about the M-Pesa integration on our M-Pesa POS page.
Simple Setup
How to Get Started with KRA eTIMS on Nexlev Retail
Getting eTIMS compliant with Nexlev Retail takes three straightforward steps. Our team guides you through every one.
Register on the KRA eTIMS Portal
Log in to the KRA iTax portal, navigate to the eTIMS section, and register your business for a VSCU. This is done by you or your accountant — it typically takes 1-2 business days for KRA to approve. Our team can guide you through the exact steps.
Connect Nexlev Retail to KRA
Our onboarding team connects your Nexlev Retail account to the KRA eTIMS API using your PIN and credentials. We map all your products to the correct KRA HS classification codes and configure VAT rates. This is done by us — you do not need a developer.
Start Selling — eTIMS Runs Itself
From day one, every sale your cashier rings generates and submits a KRA eTIMS invoice automatically. The KRA QR code appears on every receipt. You are fully compliant — and your cashiers do not need to know or do anything differently.
Transparent Pricing
KRA eTIMS Compliant POS Pricing in Kenya
eTIMS compliance is built into every Nexlev Retail plan. There is no separate eTIMS fee. All prices in Kenyan Shillings.
Common Questions
Frequently Asked Questions About KRA eTIMS
Is Nexlev Retail certified and approved by KRA for eTIMS?
Yes. Nexlev Retail is integrated with the KRA eTIMS API and submits invoices through KRA's official VSCU (Virtual Sales Control Unit) interface. All invoices are submitted in real time and carry the KRA QR code that buyers can verify on the KRA portal.
What happens if the internet goes down — are eTIMS invoices lost?
No. When internet connectivity is lost, Nexlev Retail queues all invoices locally on the device. The moment the internet connection is restored, the system automatically submits all queued invoices to KRA. No invoices are lost and no manual action is needed from the cashier.
How does Nexlev Retail submit invoices to KRA — API or manual upload?
Nexlev Retail submits invoices to KRA via the official eTIMS API in real time at the point of sale. There is no manual CSV upload or end-of-day batch process — every sale is submitted to KRA instantly as it happens.
Do I need a separate eTIMS device or ETR machine?
No. Nexlev Retail operates as a Virtual Sales Control Unit (VSCU) which is KRA's software-based eTIMS solution. You do not need a physical ETR machine or any separate eTIMS hardware — just the Nexlev Retail software on your existing computer or tablet.
What are the penalties for not having a KRA eTIMS compliant system in 2026?
Under the Finance Act 2023 and subsequent KRA enforcement notices, businesses that do not use a KRA-approved eTIMS system risk penalties of up to KSh 1,000,000 or 10% of unpaid tax, whichever is higher. Since January 2026, KRA enforces the "No eTIMS, No Expense" rule — buyers cannot claim input VAT on invoices that have no KRA QR code.
Get compliant before the deadline
Book a free demo.
A 20-minute live demo showing KRA eTIMS working automatically — a sale completed, invoice submitted to KRA, and QR code on the receipt — all in real time. We'll also tell you exactly what your registration process looks like.
See a real eTIMS invoice submitted to KRA in the demo
Get clear guidance on your KRA eTIMS registration steps
No card needed. Straight pricing in Kenyan Shillings.