KRA sets June 30 deadline for petrol stations to join eTIMS

All petrol stations in Kenya have been given until June 30, 2025, to connect their fuel pumps to the Kenya Revenue Authority's Electronic Tax Invoice Management System (eTIMS), as the government moves to tighten tax control in the fuel sector.

The KRA has introduced the new system to replace the old Electronic Tax Registers (ETRs), which it says are not suitable for handling the large and complex nature of transactions in petrol stations.

The authority explained that eTIMS is better equipped to handle real-time reporting of sales and tax information by directly linking with fuel dispensers and sales systems.

"The new system allows for real-time, seamless invoicing through integration with a fuel station's forecourt controller, computerised sales system, fuel management system, point of sale (POS), and/or printer, depending on the station's automation level," the KRA wrote.

The system has already been tested in selected petrol stations since April. The authority now expects all outlets nationwide to comply by the set deadline, either by integrating the system themselves or by working with approved providers.

"KRA has set June 30 as the final date for all fuel stations to complete their integration with eTIMS. We encourage all fuel stations to onboard eTIMS to avoid enforcement action," the authority warned.

In its statement, KRA revealed that as of April, five third-party integrators had been certified to help fuel outlets install and operate the new system.

Some stations have already completed integration, while others are in the process of setting up.

The new system is expected to improve tax compliance by ensuring every sale is recorded and transmitted directly to KRA.

It also aims to reduce paperwork and allow for faster processing of VAT claims.

"This integration ensures that every transaction is captured electronically and transmitted to KRA in compliance with the law," the statement revealed.

KRA has pointed out that eTIMS not only meets legal requirements but also comes with benefits for fuel stations.

These include faster customer service, easier tax filing, instant transaction validation, fewer disagreements during audits, and smoother VAT refunds.

However, some stakeholders in the fuel industry have voiced fears that the cost of switching to the new system could raise pump prices.

They are concerned that the added expenses might end up being passed on to consumers who are already struggling with high fuel prices.