KRA has set the deadline for mandatory eTIMS for Fuel Stations. The Kenya Revenue Authority (KRA) has announced a significant update that will impact all fuel stations across the country. Starting from June 30, 2025, all petroleum retailers will be required to adopt the electronic Tax Invoice Management System (eTIMS) for their operations. This move aims to enhance transparency, improve tax compliance, and streamline fuel retail transactions (1; 3).
What is eTIMS and Why Is It Important? 🧾
eTIMS stands for Electronic Tax Invoice Management System. It is a digital platform designed to automate and simplify the invoicing process for fuel stations. By integrating eTIMS, fuel retailers will be able to generate real-time electronic invoices for every sale, ensuring accurate record-keeping and easier tax reporting (2).
Key Benefits of eTIMS Implementation
- Enhanced Transparency: Real-time data sharing reduces tax evasion.
- Simplified Tax Compliance: Automated invoicing makes it easier for stations to file accurate returns.
- Reduced Fraud and Leakage: Digital records minimize manipulation and theft.
- Streamlined Operations: Faster invoicing process improves customer experience.
The Deadline and Its Implications ⏰
KRA has set June 30, 2025, as the final deadline for all petroleum products retailers to implement eTIMS fully (3). This means:
- Fuel stations must upgrade their systems to support electronic invoicing.
- Non-compliance could lead to penalties or operational disruptions.
- The system will be mandatory for all fuel transactions, regardless of size.
How Will This Affect Fuel Retailers?
| Aspect | What to Expect |
|---|---|
| System Upgrades | Stations need to install or upgrade their invoicing software to be eTIMS-ready. |
| Training | Staff will require training to operate the new system efficiently. |
| Compliance Monitoring | KRA will conduct audits to ensure adherence to the new invoicing requirements. |
Steps for Fuel Stations to Prepare 🛠️
To ensure a smooth transition, fuel retailers should consider the following steps (1):
- Assess Current Systems: Evaluate existing invoicing and point-of-sale systems.
- Partner with Approved Vendors: Work with certified software providers approved by KRA.
- Train Staff: Conduct training sessions on using eTIMS effectively.
- Test the System: Run trial transactions to ensure seamless integration.
- Plan for Implementation: Develop a timeline to meet the June 2025 deadline.
Final Thoughts: A Move Towards Digital Tax Compliance 🚀
KRA’s deadline for mandatory eTIMS for all fuel stations is to ensure that fuel stations comply promptly. It is a significant step toward modernizing tax collection and promoting transparency in the petroleum sector. This digital shift aligns with Kenya’s broader vision of a cashless and paperless economy (2). Fuel stations that embrace this change early will benefit from smoother operations and better compliance, avoiding penalties and contributing to national revenue growth.
FAQs
1. What is the eTIMS Fuel Station System, and why is it mandatory?
The eTIMS Fuel Station System is an electronic Tax Invoice Management System designed specifically for the petroleum sector. It enables real-time, seamless invoicing by integrating fuel dispensers, point-of-sale (POS) systems, and forecourt controllers with KRA’s tax system. The system is mandatory to enhance transparency, improve tax compliance, reduce fraud, and streamline fuel retail operations. All fuel stations in Kenya must implement it by June 30, 2025 (3; 4).
2. How can fuel stations comply with the eTIMS mandate?
Fuel stations can comply by upgrading or installing invoicing software compatible with eTIMS. They may choose to self-integrate if they have the technical capacity or partner with KRA-certified third-party integrators listed on the KRA website. Stations should also train staff, test the system, and ensure full integration by the June 30, 2025, deadline to avoid penalties (4; 5).
3. What are the consequences of not complying with the mandatory eTIMS deadline?
Non-compliance with the eTIMS mandate may lead to penalties, fines, or operational disruptions enforced by KRA. Fuel stations that fail to integrate their systems by June 30, 2025, risk being unable to legally invoice fuel sales electronically, which could result in audits, sanctions, or closure until compliance is achieved (6; 5 ).
References:
- KRA Introduces Mandatory Fuel Station System for All Petroleum Products Retailers – Kenyans.co.ke, 2024
- KRA Declares Deadline for Mandatory Use of Electronic Invoicing for All Fuel Stations – MSN, 2024
- KRA to Implement e-Tax Invoicing for Fuel Stations – The Star, 2025
- KRA, 2025
- Swalanyeti, 2025
- TUKO, 2025
Current date: Monday, June 30, 2025, 10:47 AM EAT
