Short answer: In Risiti's eTIMS mapping, A means exempt, B standard VAT, C zero-rated and D non-VAT. E is a legacy 8% code: KRA says the former 8% petroleum rate was deleted from 1 July 2023. A code remaining in software does not authorize charging that rate today. Choose the treatment using the seller's VAT status and the law applicable to the supply.
eTIMS Tax Type Code Table
| Code | Meaning in Risiti | Rate or tax amount | Selection check |
|---|---|---|---|
| A | Exempt | 0% | A supply listed as VAT-exempt under the applicable law |
| B | Standard VAT | 16% | A standard-rated taxable supply by a VAT-registered seller |
| C | Zero-rated VAT | 0% | A legally zero-rated supply by a VAT-registered seller |
| D | Non-VAT | 0% | A sale by a seller that is not registered for VAT |
| E | Legacy reduced-rate code | Historical 8% | Not a current rate for new petroleum sales; its presence in a code list is not legal authority to use it |
How to Choose the Tax Type
- ✓Confirm whether the seller is registered for VAT. A non-VAT seller should not charge output VAT merely because a customer requests a VAT invoice.
- ✓Identify the actual good or service being supplied. VAT treatment attaches to the supply, not to a convenient generic category.
- ✓Check whether the supply is standard-rated, zero-rated or exempt under current law and KRA guidance. Do not choose a legacy rate simply because it is available in the software.
- ✓Assign the correct code to each catalogue item before invoicing, especially when one invoice contains supplies with different treatments.
- ✓Review the taxable amount, tax amount, and inclusive total before submitting the invoice.
- ✓When uncertain, confirm with KRA or a qualified Kenyan tax professional before issuing the final invoice.
A Decision Path Before Saving an Item
| Decision | If yes | If no or uncertain |
|---|---|---|
| Is the seller VAT registered? | Determine the legal treatment of this particular supply | A non-VAT seller must not charge VAT; check its non-VAT setup before saving the item |
| Is the supply legally exempt? | Use the exempt treatment and retain the basis | Check whether a zero-rating provision applies |
| Does a zero-rating provision cover this supply? | Use zero-rated treatment and keep the supporting evidence | Use standard treatment only after confirming the supply is taxable; resolve uncertainty with KRA or a tax adviser |
| Does the item show E or 8%? | Check for a legacy catalogue setting or historical transaction | Review the chosen code, price basis and totals before submission |
Exempt vs Zero-Rated vs Non-VAT
| Treatment | Seller context | Output rate | Key distinction |
|---|---|---|---|
| A — Exempt | The supply itself is exempt | 0% | No output VAT is charged because the law exempts that supply |
| C — Zero-rated | Usually a VAT-registered seller making a zero-rated supply | 0% | The supply remains within VAT but is taxed at zero |
| D — Non-VAT | The seller is not VAT registered | 0% | The seller is outside VAT charging for that sale |
Tax Calculation Examples
B — 16% VAT
If KES 1,160 is VAT-inclusive, the taxable amount is KES 1,000 and VAT is KES 160, subject to rounding and the invoicing system's calculation rules.
Tax-exclusive standard-rate price
If the confirmed standard-rated price is KES 1,000 before VAT, VAT is KES 160 and the inclusive total is KES 1,160. Label the price basis before calculating a discount or total.
A or C — 0%
The calculated output tax is zero, but the invoice must retain the legally correct exempt or zero-rated classification.
D — Non-VAT
A non-VAT seller records the sale without charging VAT. This is not the same assertion as saying the product is VAT-exempt.
Common Tax-Type Mistakes
- ✓Using A (exempt) for every non-VAT business instead of D (non-VAT).
- ✓Using C (zero-rated) simply because the calculated tax should be zero.
- ✓Charging B (16%) when the seller is not VAT registered.
- ✓Applying one code to an invoice that contains items with different VAT treatments.
- ✓Hard-coding a rate and failing to update the item catalogue when tax law changes.
- ✓Correcting a submitted tax mistake by editing the PDF instead of issuing the appropriate eTIMS correction.
What to Do After Using the Wrong Tax Code
Do not alter the downloaded PDF or create an unexplained duplicate. Locate the accepted original invoice in the same eTIMS solution that issued it and use the supported credit-note flow to reverse all or part of the transaction.
After the correction is accepted, fix the item's saved tax type before issuing the replacement invoice. Keep the original invoice, credit note, and corrected invoice together for reconciliation and audit support.
Official sources
Official guidance and legislation used to prepare this guide.
Frequently asked questions
Open a question to read the answer.
What is tax type A in eTIMS?
Tax type A represents an exempt supply at 0%. Use it only when the good or service is legally VAT-exempt, not merely because the seller is not VAT registered.
What is tax type B in eTIMS?
Tax type B is the standard 16% VAT treatment. It is used by VAT-registered sellers for supplies subject to the general VAT rate.
What is tax type C in eTIMS?
Tax type C represents a zero-rated VAT supply at 0%. Zero-rated and exempt are different VAT treatments even though both produce zero output tax.
What is tax type D in eTIMS?
Tax type D is the non-VAT treatment commonly used when the seller is not registered for VAT and therefore does not charge VAT on the sale.
Is tax type E at 8% still a current VAT rate?
E is a legacy 8% mapping in Risiti. KRA says the former 8% petroleum VAT rate was deleted from 1 July 2023. Do not treat a retained software code as permission to charge that rate on a new sale.
Can one eTIMS invoice contain different tax types?
Yes. Each item line carries its own tax treatment, so an invoice may contain differently classified supplies when that reflects the actual transaction.
Updated: 14 Sept 2026. Source-check scope and limitations, where recorded, appear below. This guide is not tax or legal advice. Confirm unusual cases with KRA or a qualified tax professional.
Keep reading
Selected from the same guide librarySource check: . KRA's current VAT rates, deletion of the former 8% petroleum rate and Risiti's retained integration mappings.
The guide does not classify an individual taxpayer or supply. Historical records and supported integration codes were not rewritten.
What changed in this review
- Marked E/8% as a legacy mapping and removed the current-rate example.
- Added a seller-status and supply-treatment decision table without changing backend codes.