The Real Cost of Ignoring VAT Compliance — And How dPOS Solves It

Learn why dPOS is the go-to eTIMS-integrated POS solution in Kenya and how it helps you stay compliant, save time, and avoid penalties.

We have worked with businesses ranging from corner barbershops to booming wine shops in Nairobi. I can tell you this for free: ignoring eTIMS is no longer an option.
We are in a new era of doing business in Kenya, one where compliance isn't just about following rules; it's about staying in business.

But here's the good news: with tools like dPOS, compliance doesn’t have to be complicated, scary, or expensive.

Let me walk you through what ignoring eTIMS could cost your business and how dPOS gives you a stress-free solution to get compliant and stay ahead.

What Is eTIMS & Why Does It Matter?

eTIMS (Electronic Tax Invoice Management System) is the KRA-mandated system that requires VAT-registered businesses to generate and submit tax invoices in real time.

In short, if you sell goods or services in Kenya, KRA wants to know about it, instantly.

Businesses like yours must now issue KRA-compliant digital receipts or risk serious penalties.

The Hidden Costs of Ignoring eTIMS

1. Financial Penalties & Fines

A friend of mine runs a cybercafé in Westlands. For months, he delayed getting eTIMS set up. "It can wait," he said.

Then came a random audit.

He ended up paying over KSh 150,000 in fines for non-compliance. And no, KRA does not accept "I didn’t know" as an excuse.

Late adoption could cost you more than the system itself.

2. Operational Setbacks

Relying on manual invoice books or Excel? These slow you down, increase human error, and hurt your cash flow.

Without eTIMS, clients, especially corporates and institutions, may delay payments or refuse to engage altogether due to a lack of compliant digital receipts. You also miss out on tax deductibles and appear unprofessional to B2B buyers looking for fully compliant suppliers.

3. Reputational Damage

A restaurant owner I worked with lost a bulk supply contract because her business could not provide digital tax invoices.

The buyer’s words? "If you cannot comply with KRA, how can we trust your service?"

Ouch.

How dPOS Solves the eTIMS Challenge

Here’s where dPOS steps in like your silent business partner (who happens to be a tax genius).

✅ Seamless eTIMS Integration

dPOS connects directly to KRA’s system. Every sale you make generates an eTIMS-compliant tax invoice in real time and syncs it with KRA.

That means:

• No manual uploads

• No software switching

• No delays

✅ Automatic, Accurate, and Easy Invoicing per Sale

dPOS auto-generates every invoice, calculates taxes, and keeps a digital audit trail, saving you from paperwork, errors, and KRA heat.

Late last year, we set up dPOS for a boutique in Kilimani. They were overwhelmed by invoice entry before. Now? Their tax records run themselves.

✅ Future-Proof and Scalable

• Whether you expand to multiple branches or open in new locations, dPOS ensures your entire setup remains VAT-compliant from day one.

• Offers real-time remote access and multi-user functionality, so managers, accountants, and staff can stay aligned on compliance across locations.

• As your business grows, dPOS scales with you, automating invoicing, syncing with KRA, and maintaining full eTIMS integration at every level.

Getting Started with dPOS & eTIMS
Ready to stop stressing over tax compliance? Let dPOS handle the heavy lifting so you can focus on what you do best, running your business.

It takes less than a day to get up and running.

Here’s how:

1. Book your FREE demo at www.dpos.co.ke or call +254 (0) 111 053 213

2. We set up your business on dPOS, which is eTIMS integrated, ensuring you are fully tax compliant.

3. We train your team and walk you through how to use the system.

Boom! You are now compliant.