6 reasons why your business should ditch TIMS devices and transition to eTIMS

– A Case Study on Pharmacies

For VAT-registered businesses across Kenya, compliance with the Kenya Revenue Authority’s (KRA) tax regulations is critical. Many businesses initially adopted the Tax Invoice Management System (TIMS), which was rolled out by the KRA in 2021. However, with recent advancements, businesses are now encouraged to take the next step: transitioning to eTIMS. This new system offers a range of benefits designed to improve compliance and streamline operations.

This article explores why transitioning from TIMS to eTIMS is essential, using pharmacies as a case study to illustrate the transformative impact of this shift and why DigiTax is the perfect partner to ensure a smooth, compliant transition.

Why Switch from TIMS to eTIMS?

Switching from TIMS to eTIMS is more than a compliance update; it’s a strategic move that enhances efficiency and accuracy. For example, for pharmacies operating with multiple branches, this shift addresses key pain points, including compliance, operational transparency, and cost savings.

• Automated e-Invoicing
  Traditional TIMS processes can be time-consuming and prone to error. eTIMS automates invoice generation and real-time data transfer to the KRA, ensuring every transaction is logged accurately. This reduces the risk of VAT discrepancies, minimizes filing errors, and helps businesses stay in full compliance with KRA requirements.

• Full Adherence to New KRA Regulations
  eTIMS is aligned with the latest KRA VAT regulations, and transitioning to this system ensures businesses stay compliant without having to frequently update hardware or processes. With eTIMS, your business can easily adapt to any future regulatory updates, minimizing disruption and costly fines.

• Simplified VAT Claims
  eTIMS simplifies tax compliance, allowing pharmacies to accurately track expenses and claim VAT deductions. This is particularly valuable for pharmacy owners with high-volume sales and stock purchases across multiple branches, as it reduces the administrative burden and ensures full, efficient reporting of all eligible deductions.

• Streamlined Invoicing
  For pharmacies handling a high volume of transactions, traditional invoicing can be cumbersome. eTIMS centralizes the invoicing process, saving valuable hours of administrative work. DigiTax’s eTIMS solution allows you to oversee multiple branches from a single dashboard, providing real-time insights and simplifying branch-level reporting.

• Reduced Manual Workload and Increased Accuracy
  Manually tracking and reporting invoices can lead to errors that compromise compliance. eTIMS automates these tasks, significantly reducing manual workload while increasing data accuracy. For pharmacy owners, this means more time to focus on customer service and less time spent on time-consuming administrative tasks.

• Savings on Hardware Costs
  TIMS often requires dedicated hardware for compliance. eTIMS, on the other hand, is software-based and integrates with your existing infrastructure, saving businesses significant costs on hardware purchases and upgrades. With DigiTax, you can transition to eTIMS without having to invest in new devices, making it a cost-effective compliance solution.

Case Study: The eTIMS Impact on Pharmacies

For pharmacy owners, transitioning to eTIMS can streamline compliance processes while also creating greater visibility and operational efficiency. Pharmacies often operate across multiple branches with high transaction volumes, making compliance both complex and essential. With eTIMS, these businesses can consolidate transaction data, improve accuracy, and ensure that every transaction is captured and reported in real-time.

Consider a typical pharmacy owner juggling inventory management, customer service, and regulatory compliance. With DigiTax’s eTIMS platform, this owner can rely on automated, accurate data reporting, enabling them to remain compliant without the constant administrative overhead. The centralized dashboard offers complete visibility into sales and transactions across branches, reducing the risk of errors that could trigger costly KRA audits or penalties.

Why DigiTax is the Ideal Partner for Your eTIMS Transition

DigiTax offers a tailored eTIMS solution that simplifies the transition from TIMS, particularly for VAT-registered businesses. Switch to eTIMS with DigiTax for a future-proof, efficient, and cost-effective tax compliance solution. Embrace eTIMS with DigiTax and optimize your business operations today.