Marketing budgets touch many suppliers: printers, fabricators, venue owners, transporters, promoters. Each of those invoices now matters for tax.
The two rules
- Everyone in business invoices through eTIMS. Under section 23A of the Tax Procedures Act and the Electronic Tax Invoice Regulations, 2024, businesses, VAT registered or not, issue invoices through KRA's eTIMS. The invoice carries a KRA QR code and is transmitted to KRA in real time.
- No eTIMS invoice, no deduction. Since the Finance Act 2023, section 16(1)(c) of the Income Tax Act does not allow a business cost that is not supported by a valid electronic tax invoice, with listed exceptions such as salaries under PAYE, imports and some financial items.
Why 2026 is different
From 1 January 2026, KRA's iTax system checks income tax returns against eTIMS, withholding and customs data. Costs that do not match can be challenged when the return is filed. The Finance Act 2026 also introduced a penalty from 1 July 2026 for failing to issue an electronic invoice: after a written notice, the higher of 5% of the tax due or KES 100,000 for a company.
What to check on every campaign invoice
- The KRA QR code is printed and scans to the same invoice on the KRA invoice checker.
- Your company's KRA PIN appears on the invoice. Without it, you cannot claim the cost or the VAT.
- The amounts match the quotation, LPO and delivery note.
- Credit notes, not edits. A corrected invoice should come with an eTIMS credit note, not a changed PDF.
- Small suppliers. For suppliers with turnover up to KES 5 million, the buyer can issue a reverse invoice through the eTIMS buyer solution on eCitizen, with the supplier's consent.
How DBM handles it. Our invoices are issued from Zoho Books through eTIMS, and every supplier bill we pay must carry a valid eTIMS number that our accounts team verifies before payment. Clients can download their invoices and statements from the client portal.
