How to File VAT Returns FAST Online! (2024)

Here’s a comprehensive guide on how to file VAT returns in Kenya.

Understanding VAT in Kenya

VAT (Value Added Tax): A consumption tax levied on the supply of most goods and services in Kenya.
VAT Registration: If your business’s taxable turnover exceeds KES 5,000,000 in a 12-month period, you are required to register for VAT.
Due Date: VAT returns must be filed, and any tax due paid, by the 20th of the month following the tax period.

Steps to File VAT Returns in Kenya

Access the iTax Portal: Visit the Kenya Revenue Authority (KRA) iTax portal (https://itax.kra.go.ke/KRA-Portal/).
Log in: Enter your KRA PIN and password. If you’re not registered on iTax, you’ll need to create an account first.
Select ‘File Returns’: Under the ‘Returns’ menu, choose the ‘File Returns’ option.
Choose VAT: Select ‘VAT’ as the tax obligation.
Download the Excel Template: Click on ‘Download Auto-populated VAT return’ to get the pre-filled Excel template.
Prepare Your Return:
- Open the downloaded Excel template.
- Verify the pre-filled details (PIN, return type, tax period, etc.)
- Carefully fill in the required fields based on your sales and purchase records. This includes input VAT, output VAT, and any adjustments if applicable.
Upload the Return:
- Save the completed Excel template.
- Go back to the iTax portal and upload the saved file.
Validation: The iTax system will validate your return. If there are errors, address them accordingly.
Submission: Once your return is error-free, submit it on the iTax portal.
Payment: If you have any VAT payable, proceed to make the payment. Options include:
- Generating an e-slip: Use the iTax system to create an e-slip and pay at an authorized KRA bank.
- Direct Debit: Authorize your bank to transfer funds directly to KRA.
- Other Means: RTGS, mobile money platforms (check KRA website for authorized options)

Important Notes:

Late Filing Penalties: Filing your VAT return late will attract penalties and interest on the unpaid tax.
Record Keeping: Maintain accurate records of your sales and purchases to substantiate your VAT calculations.
Professional Assistance: If you find the process complex, consider seeking the help of a tax advisor or accountant.

Additional Resources:

KRA VAT Guide: Refer to the KRA’s official guide for more detailed instructions (https://www.kra.go.ke/images/publications/Pre-populated-VAT-return-Step-by-Step-Guide-27-11-2023.pdf)
KRA iTax Portal: https://itax.kra.go.ke/KRA-Portal/

Disclaimer: Tax laws and regulations may change. Always consult the latest guidance from the KRA website for the most up-to-date information.

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