Debunking Common Myths About eTIMS Compliance for All Taxpayers

Common Myths surrounding eTIMS compliance VS Facts

Myth #1: Small businesses and individuals are not required to comply with eTIMS

Fact: eTIMS is compulsory for ALL taxpayers effective 1 January 2024. For individuals and small businesses conducting business, they are required to issue eTIMS compliant invoices and all their expenses should have eTIMS compliant invoices to support.

Myth #2: eTIMS invoices are not required to have all components

Fact: eTIMS invoices require to have all the following features

1. the PIN of the user of the system;

2. the time and date of issuance of the invoice;

3. the serial number of the invoice;

4. where the buyer intends to claim the expense or input tax;

5. the buyer’s PIN;

6. the total gross amount;

7. the total tax amount, where applicable;

8. the item code of supplies, as provided by the Commissioner;

9. a brief description of the goods and services;

10. the quantity of supply;

11. the unit of measure;

12. the applicable tax rate;

13. the unique system identifier;

14. the unique invoice identifier;

15. a quick response code; and

16. any other information as may be specified by the Commissioner

Myth #3: eTIMS has no benefit from a tax point of view

Fact: eTIMS assists taxpayers to keep track of their expenses and revenue and will assist to ensure all expenses that are deductible arrive at the tax profit at the end of the year.

Myth #4: eTIMS is only for VAT registered persons

Fact: eTIMS applies to all VAT and non-VAT registered taxpayers who are all required to issue eTIMS compliant invoices

Myth #5: eTIMS is difficult to integrate with existing business systems.

Fact: eTIMS is designed to be flexible and can integrate seamlessly with various business systems, including ERP, POS, Bookkeeping and other accounting software. Whether you are a small business or a large enterprise, there are options available for easy integration to ensure compliance without disrupting your current operations.

Myth #6: Only large transactions require eTIMS-compliant invoices.

Fact: All transactions, regardless of the amount, must be documented with eTIMS-compliant invoices. This ensures that every transaction is accounted for and compliant with tax regulations, helping businesses avoid penalties and ensure accurate record-keeping.

Myth #7: eTIMS only benefits the tax authority and not the business.

Fact: While eTIMS does ensure compliance with tax regulations, it also benefits businesses by providing accurate, real-time records of all transactions. This makes it easier to manage finances, prepare for audits, and gain insights into business performance, ultimately leading to better decision-making as well as financial and tax management.

Found this helpful? Here’s how we can assist you!

Compliance with the latest eTIMS compliance requirements is highly recommended for the relevant entities to align with the evolving regulatory landscape.

Our team is ready and eager to assist with the seamless integration and adoption of eTIMS as an approved eTIMS integrator ensuring a smooth transition for you and your institution enabling you to meet the latest legal requirements.

Contact us today for further assistance. Email us at info@namiri.tech or call or Whatsapp 0112685368.