KRA eTIMS Reverse Invoicing in Kenya: Buyer and Supplier Guide
Short answer: Reverse invoicing lets an approved large buyer generate eTIMS invoices on behalf of sellers through the buyer's trusted billing system. It is designed for structured supply chains with many small suppliers and requires KRA KYC approval, seller consent, and OSCU or VSCU system integration.
Who Reverse Invoicing Is Designed For
KRA positions reverse invoicing for structured corporate ecosystems where one large buyer deals with many small-scale suppliers. Examples in KRA's guidance include tea, coffee, dairy collection, and platform-style relationships where the buyer already has reliable transaction data.
This is not a shortcut for any business that wants to create a supplier invoice. The buyer must operate a centralized, trusted Trader Invoicing System and pass KRA's approval process before implementation.
Core Requirements Before Go-Live
KRA buyer approval
The buyer must be approved for reverse invoicing through KRA's Know Your Customer process.
Trusted billing system
The buyer needs a Trader Invoicing System that clearly identifies the parties and transaction records.
OSCU or VSCU integration
The billing system must transmit invoice data to eTIMS through an approved system-to-system route.
Seller consent
The seller must formally consent to buyer-generated invoicing under the applicable agreement and terms.
Defined products and rates
Goods, services, quantities, prices, classifications, and revenue allocation must be clear.
Data protection controls
The buyer must manage consent, notifications, records, security, and applicable data-protection duties.
How the Reverse Invoicing Flow Works
- ✓The buyer completes the OSCU or VSCU integration and the reverse-invoicing technical process.
- ✓The buyer's system initializes participating suppliers and creates a secondary device for each seller.
- ✓The seller is notified through the phone number registered with eTIMS and can approve or reject onboarding.
- ✓The buyer's system creates an invoice using validated seller PIN, onboarding, VAT, quantity, and price data.
- ✓The approved invoice is transmitted to eTIMS and the seller receives an email or SMS notification.
- ✓The system retains an audit trail for invoice creation, approval, changes, rejection, and credit notes.
Reverse Invoicing vs Buyer Initiated Invoicing
| Question | Reverse invoicing | Buyer initiated invoicing |
|---|---|---|
| Typical user | Approved large buyer with many suppliers | Buyer purchasing from a qualifying small enterprise |
| Technology | Trusted billing system integrated via OSCU or VSCU | eCitizen workflow |
| Buyer approval | KRA KYC approval required | Available through the public buyer-initiated flow |
| Supplier relationship | Structured, ongoing supply chain or platform | Transaction-level small-supplier purchase |
| Seller involvement | Formal consent, onboarding, secondary device, notifications | Seller consents through USSD or eCitizen |
Practical note: KRA treats these as separate solutions. Do not use the terms interchangeably in contracts, supplier training, or system requirements.
Buyer Responsibilities After Integration
- ✓Validate seller PIN, eTIMS onboarding status, VAT status, rates, and duplicate transactions.
- ✓Send a notification for every invoice event and keep the process transparent to the seller.
- ✓Generate credit notes when an original invoice contains an error.
- ✓Maintain invoice records and a secure audit trail for at least five years.
- ✓Transmit reverse invoices in Kenya shillings and bear the implementation cost without passing it to sellers.
- ✓Monitor rejected invoices, outages, data errors, and other operational issues through defined support processes.
What Suppliers Should Check
A supplier should understand the contract, confirm the buyer's onboarding request, review notifications, and compare generated invoices with delivery records and payment statements. Consent does not remove the need to monitor what is issued under the supplier's identity.
If quantities, prices, classifications, or seller details are wrong, raise the issue promptly so the buyer can correct the original transaction through the approved credit-note process.
Official KRA Sources
Frequently Asked Questions
Does every buyer qualify for eTIMS reverse invoicing?
No. KRA says the buyer must be approved through a Know Your Customer process and have a trusted Trader Invoicing System integrated with eTIMS.
Does a seller have to consent to reverse invoicing?
Yes. KRA requires formal seller consent, defined buyer-seller agreements, and records of that consent.
Who pays for reverse invoicing integration?
KRA's guidance says the buyer bears the cost associated with reverse invoicing and must not transfer it to the seller.
How long must reverse invoicing records be kept?
KRA says the buyer must maintain invoices and the relevant audit trail for at least five years.
Last reviewed: June 2026. This guide summarizes current public KRA information and is not tax or legal advice. Confirm unusual cases with KRA or a qualified tax professional.