A receipt, a payment confirmation, and an electronic tax invoice document different parts of a transaction. One should not be assumed to replace another. Businesses need to keep records that show what was supplied, what was charged, how payment was handled, and how any correction was made.
The Kenya Revenue Authority’s current eTIMS guidance says persons engaged in business are required to onboard eTIMS and issue electronic tax invoices, and it describes the available solutions and special cases. Check the latest KRA requirements for your business activity; do not rely on an ordinary point-of-sale receipt as proof that eTIMS obligations have been met.
Four records that are easy to confuse
| Record | What it usually shows | What it does not prove by itself |
|---|---|---|
| Sales receipt | Items or services recorded in a business sale | That the document was generated through a required eTIMS process |
| Payment confirmation | A payment event, amount, reference, or provider status | The full tax treatment or every item supplied |
| Invoice | Amount requested or recorded for an agreed supply | That the amount was paid |
| Electronic tax invoice | Tax invoice information handled through the applicable electronic tax system | That a separate payment has settled |
The exact document names and legal requirements vary by transaction and tax status. Confirm which document your customer needs and which system must create it.
Check what applies before issuing documents
Review the KRA eTIMS onboarding material and available solution options. The requirements can depend on the nature of the supply, tax status, and current rules. If your accounting or sales software produces invoices, confirm whether it is integrated with an approved eTIMS solution and which records it creates.
Ask a tax adviser or KRA to clarify uncertain cases, including exempt supplies, buyer-initiated invoicing, corrections, and purchases from suppliers whose circumstances require a special process. A digital PDF or email attachment is not automatically an eTIMS invoice.
KRA also publishes guidance on credit and debit notes. A payment refund does not itself amend an issued tax invoice. Where the supply or tax amount changes, follow the applicable correction process and keep the adjustment linked to the original document.
Keep a complete transaction trail
A clear record set may include:
- Customer order, accepted quote, or purchase order.
- Sales invoice or tax invoice produced through the appropriate process.
- Itemized receipt or proof of delivery where applicable.
- Payment provider reference, settlement, fee, or reversal.
- Credit note, debit note, refund, or correction.
- The person who approved a change and the reason.
- Customer communication needed to explain the transaction.
Link records by invoice, order, or transaction reference. If an amount is part-paid, record the balance and each payment separately. Do not erase the original record when correcting a mistake; preserve the history so another person can follow it.
Reconcile the payment and document separately
At a regular interval, compare sales and invoice records with cash counts, mobile-money statements, card reports, and bank settlements. Explain provider charges and timing differences. Follow up on missing document numbers, duplicate references, and payments that cannot be matched to an order.
A payment screenshot or notification may help locate a transaction, but use the provider’s authoritative transaction record to confirm the status. A tax invoice shows a supply and tax details; it does not necessarily show that the payment has settled.
Protect and retrieve records
Store records in an access-controlled system, keep backups, and use a naming or indexing method that supports retrieval by date, customer, order, and invoice number. Restrict access to people who need the information. Protect customer contact and payment details from unnecessary sharing.
The retention period depends on the legal and operational requirements that apply to each record. Keep records for the required period, and confirm current retention obligations with KRA or a qualified adviser. Do not delete records based only on a generic internet checklist.
Handle corrections and refunds as separate records
A refund records money returned to a customer. A credit note or another tax adjustment changes the tax-document record under the applicable process. A transaction may need one, both, or a different correction depending on what happened. Do not assume that refunding a payment automatically cancels an invoice.
Keep the original invoice reference, reason, date, amount, approving person, payment status, and the correction document together. If goods are returned, record their condition and whether they were accepted back into sellable stock. This makes it possible to explain the operational, payment, and tax outcomes separately.
KRA’s credit and debit note guidance states that the original invoice number is needed when generating a credit or debit note. Check the current eTIMS workflow for the solution that issued the original document; the interface and process may differ by solution.
Ask these questions before choosing an invoicing system
- Does it create an ordinary invoice, an electronic tax invoice, or both?
- Which eTIMS solution or approved integration does it use?
- How are credit notes and debit notes linked to the original invoice?
- Can authorized staff retrieve the full document and audit trail?
- What happens when the connection or integration is unavailable?
- How are duplicate invoice numbers and failed submissions identified?
- Can records be exported in a format the accountant can review?
Keep answers from the provider in writing and confirm legal obligations with KRA or a qualified tax adviser.
Separate business records by transaction stage
Keep a record of the agreed sale, the supply or delivery, the invoice or tax invoice, the payment, and any later adjustment. A customer may ask about a missing item even after paying. A supplier or accountant may ask for an invoice even when the payment has already settled. A single receipt file may not answer both questions.
For a sale paid in instalments, retain each payment reference and the running balance. For a refund, retain the decision and payment evidence. For a return, retain the item condition and stock outcome. Use shared references so the complete transaction can be reviewed without exposing unrelated customer details.
When different staff handle sales, finance, and delivery, agree on who stores each document and who checks that the record set is complete. A handover checklist reduces the chance that payment proof is kept in one person’s inbox while the tax invoice is missing from the business archive.
A practical review checklist
Before closing a month, confirm that sales and invoices reconcile; tax invoice records are available for the relevant transactions; payment references match the correct sale; refunds and credit notes link to the original transaction; missing or duplicate numbers have an explanation; and source documents can be retrieved by an authorized person.
Common eTIMS and receipt questions
Does a POS receipt replace an eTIMS invoice?
Not necessarily. A receipt and an electronic tax invoice are different records. Check that the document was created through the eTIMS process that applies to the transaction.
Who should use eTIMS?
KRA’s current guidance states that persons engaged in business are required to onboard and issue electronic tax invoices, while also describing special cases and available solutions. Review the current KRA guidance for the business’s circumstances.
Where should I check for updates?
Use KRA’s official eTIMS pages and contact KRA or a qualified tax adviser when a rule or special case is unclear.
For a separate customer-facing explanation of what to include and how to deliver it, read digital receipts and customer communication. For daily sales and payment records, see a practical bookkeeping routine.