Using A Taxi App In Kenya? Expect To Get A Tax Invoice For Every Ride
KRA introduced eTIMS in 2023 to curb revenue leakages by ensuring that legitimate receipts back business expense claims.
Marvin Chege 
The Kenya Revenue Authority (KRA) has turned its attention to the digital taxi-hailing sector, with passengers in the country set to receive electronic tax invoices from drivers, in line with new compliance rules. This move could be a game-changer in this vibrant sector.
Uber drivers in Kenya, for example, have been informed by the taxi-hailing app that it will start generating Electronic Tax Invoice Management System (eTIMS)-compliant invoices on their behalf to simplify the process while ensuring adherence to tax regulations.
“As part of the Kenya Revenue Authority (KRA)’s efforts to digitise and streamline tax compliance, all persons providing goods or services, including transportation, are now required to issue e-TIMS-compliant invoices to their customers. This includes drivers who offer trips via platforms like Uber,” read a notice by Uber in part.
Photo of a vehicle with Uber branding. /HRLEVERAGE KENYA
“We understand that issuing tax invoices after every trip may feel challenging, especially due to the technical and time-related constraints. That’s why, with the KRA’s approval, Uber will use its technology to help drivers meet this legal requirement by issuing the e-TIMS-compliant invoices on your behalf.”
The company instructed all drivers to upload their KRA PIN certificates through the driver app and sign a consent form to continue operating on the platform.
“To activate this support, we kindly request two quick steps from you: Read and accept the consent form – This authorises Uber to issue e-TIMS invoices on your behalf. Share your KRA PIN certificate via the driver app starting today – This is needed to register your profile on the e-TIMS platform,” Uber notified drivers.
According to the VAT (Electronic Tax Invoice) Regulations of 2020, all businesses and service providers, including transport operators, are required to issue invoices through the eTIMS platform. For Uber drivers, this translates to generating an invoice for every ride.
KRA introduced eTIMS in 2023 to curb revenue leakages by ensuring that business expense claims are backed by legitimate receipts. The system enables the tax body to track transactions almost in real time and quickly identify inconsistencies.
By June last year, however, only 120,000 taxpayers with business income had registered on eTIMS, accounting for just 18.1 per cent of the 663,000 firms in KRA’s database.
Tax experts attributed the low adoption rate mainly to smaller businesses struggling with the limited technical know-how and resources needed to integrate with the system.
To ease this challenge, Parliament approved an exemption in December for enterprises with annual sales below Ksh5 million, sparing them from mandatory registration.
The amendment also allows bigger companies purchasing goods or services from such businesses to generate eTIMS invoices on their behalf — a measure aimed at preventing large firms from manipulating sales records and underreporting profits to evade taxes.
An image of KRA offices. /FILE
