What is TIMS?
TIMS stands for Tax Invoice Management System and is introduced by Kenya Revenue Authority (KRA) to gather tax data from all VAT-registered tax payers in the country.
TIMS comes as an upgrade and update of the already existing Fiscal Tax Devices system that was introduced by KRA back in 2004.
The big difference between TIMS and FISCAL systems is that with the new system all tax relevant data from retail receipts, commercial invoices etc will be uploaded on a near real time basis to KRA’s online Tax Servers.
In contrast, the old FISCAL system did not have online capabilities and only used local secure memory to keep tax data for auditing purposes.
You can find more details in our article introduction to KRA’s TIMS System!
Why need of TIMS?
TIMS is obligatory for all Kenyan tax payers under the authority of KRA.
If you are a VAT registered Tax Payer in Retail sector (selling goods or services to end users) or in Business to Business sector (selling goods or services to other businesses) you will have to introduce into your business a TIMS-approved device to comply with the new regulations.
As a Tax Payer you should take care to comply with the new regulations by consulting appropriate and knowledgeable enterprises who will guide you into the appropriate TIMS certified device your business needs.
What is the need of middleware devices?
Middleware, as the name implies, is a TIMS-certified device that sits between your business and KRA Tax Server.
The Middleware device replaces all ETR and ESD devices used in old Fiscal System.
There are three types of Middleware:
Type A Middleware is a device that sits between your Cash Register and TIMS Server
Type B Middleware is a device that sits between your POS Retail system and TIMS Server
Type C Middleware is a device that sits between your Accounting Computers and TIMS Server
Do I need to buy new ETR/Middle ware devices even if I have one?
Unfortunately, the existing fiscal devices do not have the hardware and software capabilities required by TIMS specifications.
TIMS Middleware carry very strict security features both in hardware and software and is fully capable of connecting to Internet. Such features are lacking almost entirely from existing fiscal devices.
Upgrading an existing old Fiscal ETR or ESD therefore, even if possible in theory, will cost much more than getting the new Middleware type prescribed for your type of business.
Collection of Tax Data over Internet
A modern Tax Auditing system today is about collecting reliable Tax Data over the internet
Collecting from Retail Systems
Our latest generation of ECRs offer the lowest cost solution in generating fiscal data and directly transmitting those to Tax Server. The Middleware can be also utilized at an additional cost for high-end POS systems.
Collecting from any B2B / Computer System
How to collect and audit data created by computer based accounting systems, Large Tax Payers, B2B etc.
The Middleware as a standardized robust interface between any computer system (ERP/POS) and Tax Server.
The Tax Server: Anatomy and Operations of the Tax Data Collection Server
Middleware Connection
Type A/B/C Devices (Middle wares) are acknowledged by the server and paired to a Tax Payer with Standard Server Security practices (in addition and on top of FISCAL security measures.
Core Server Application
Core Server Application will perform multiple functions:-Maintain a DEVICES Database-Validate and pair Tax Payers to Devices-Accept connections from devices-Collect, validate and request Tax Data on a schedule-Update the Transactions Database.
Main Database for Tax Server
Stores details on every device that is acknowledged and capable of connecting to the system. Stores all transaction details coming in from the market stores malfunction events for the connected devices.
Reporting for TAX evasion
Extract any type of report from the data alert authorities on possible Tax evasion issues automated and remote auditing.
Communicate with existing KRA Server.
Tax payers device communicates to the KRA server through TAX server database.
How it all works???
Device Manufactures
Approved manufactures update Tax server database with serial number of the devices before it is sold to the Tax payer.
Purchase & Paring
Tax Payers purchases the suitable device (middleware) for their business and pair it with device serial number to the TAX server.
Device Configuration
With our dedicated experts, extensive API library and our unique device interface driver, we integrate middleware to Tax payers applications such as Point of sales, Accounting system or ERP solutions.
Data Collection
Tax server communicates with the devices using internet and collects the daily transactions, validate them and produces authenticated receipts or invoices, and uploads all transactions to the Tax server at specified intervals.
Data Mining, Tax Audit, Reporting
Collected data now will be analyzed, audited by the Government using automated reporting system.