eTIMS expense risk calculator: how much tax could missing invoices cost you?

From 2026 KRA checks the expenses in your return against eTIMS data. See the extra tax and lost VAT you could face for purchases without an eTIMS invoice.

Yearly business expenses you claim (KES)Share without a valid eTIMS invoice Who pays the tax?Are you VAT-registered?

Extra tax and VAT you could face each year

Fix it with eTIMS set-up

Why this matters

KRA has said that from the 2026 year of income, declared income and expenses must be supported by valid electronic tax invoices. An expense that fails validation can be disallowed, which raises your taxable profit. If you are VAT-registered, input VAT on purchases without a valid invoice can also be refused.

The figure above is a simple estimate. Penalties and interest could come on top. It assumes expenses include 16% VAT where you are VAT-registered.

Read what eTIMS requires in the eTIMS guide, check VAT with the VAT calculator and estimate penalties with the penalty calculator. Want it set up for you? See our eTIMS set-up service.

Common questions

Does this apply if I am not VAT-registered?

Yes. KRA requires businesses to issue and receive eTIMS invoices whether or not they are VAT-registered. Not being on VAT does not remove the income tax risk.

Can I still claim expenses without an invoice?

For 2025 returns KRA allowed a one-time concession, subject to validation. From the 2026 year of income, expenses should be backed by eTIMS invoices.

How do I reduce the risk?

Ask every supplier for an eTIMS invoice, check rent and government fees, and reconcile your eTIMS data to your books each month.

Related calculators and guides

KRA penalty and interest calculatorLate-filing costs for VAT, PAYE and turnover tax.VAT calculatorAdd or remove 16% VAT in one step.Withholding tax calculatorDeduct the right tax on fees, rent and interest.Payroll remittance calculatorPaste all salaries and see what to pay KRA, NSSF and SHA. eTIMS in Kenya: what every business owner must do in 2026Guide · eTIMS VAT registration in Kenya: threshold, rate, returns and penaltiesGuide · VAT

Find out where your invoices are missing

We reconcile your purchases to eTIMS and set a monthly check.

Book a free books check

Estimates for guidance only, not tax advice. Rates were checked in October 2026 and can change. Confirm with KRA or a qualified professional.