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Knowledge Base
Free guides written for Kenyan SMEs. How to register for VAT, file returns, calculate 16% VAT, get a penalty waiver, compare Turnover Tax vs VAT, and understand eTIMS compliance. Updated for 2026.
KRA's Comprehensive Electronic Tax Invoicing System is in procurement for 2027–28. Every invoice validated and signed by KRA before it reaches the buyer. Uganda's EFRIS lessons and how to prepare now.
Where analysts source official KRA data: KRA Publications, iKESRA, GavaConnect APIs, openAFRICA, KNBS and National Treasury - all free, direct download pages.
Google is withholding 5% of AdSense earnings from October - and holding payments entirely if your KRA PIN is missing on 1 Oct. The exact math, with calculator.
The 2 September cargo benchmark cut from Sh3.2M to Sh2M - what changed at customs, the garment/footwear/fabric exclusion list, and a printable one-pager for your clearing agent.
Every levy a Kenyan SME actually pays - VAT, PAYE, housing levy, NSSF, SHIF, permits, eTIMS - in one worked example at KES 6M turnover, plus the four legal ways to shrink it.
DIY on iTax (free, ~3 weeks), traditional facilitators (KES 15,000-30,000), or flat-fee online agents (KES 5,000, 1-3 days). The honest cost-time-risk comparison.
KRA's Shuru WhatsApp chatbot files simple returns free. It can't fix rejected eTIMS invoices, waivers or complex errors. Where the bot stops and a human starts.
Commercial rent is VAT-able at 16% above KES 5M taxable turnover; residential rent is exempt. Registration, eTIMS rent invoicing, mixed-use apportionment, input VAT.
Step-by-step KRA iTax VAT registration guide. Documents needed, KES 5M threshold, timeline, and what happens after you register.
KES 10,000 fixed penalty + 5% of tax due + 1% monthly interest. Learn how to check penalties on iTax and apply for a KRA penalty waiver.
VAT exclusive, VAT inclusive, and input/output VAT calculations with worked examples. Includes standard, zero-rated, and exempt scenarios.
Complete guide to filing VAT returns on iTax before the 20th. Dashboard navigation, invoice listing, filing, and penalty checks.
KES 5 million annual turnover threshold, voluntary registration, non-resident rules, and penalties for not registering. Includes a decision flowchart.
When iTax won't load, login fails, or pages won't render. Step-by-step troubleshooting for the most common iTax technical issues.
Complete eTIMS onboarding guide. Who must register, KES 50,000 fine, step-by-step iTax setup, SDK integration, and offline invoicing.
VAT vs Turnover Tax comparison - threshold, rates, filing frequency, input VAT, and how to choose the right tax regime for your business.
Complete reference to all KRA VAT penalties - late registration, late filing, late payment, eTIMS non-compliance, and incorrect returns.
Complete checklist of everything you need for KRA VAT registration - documents, information, and step-by-step preparation.
How to file nil returns on iTax and clear outstanding penalties through the KRA tax amnesty programme - 100% penalty and interest waiver.
VAT compliance tailored for Kenyan startups and tech companies - equity vs revenue, software licensing, input VAT on development costs.
What the KRA VAT Special Table is, why your business might be on it, and how to get removed. Includes application steps and document requirements.
Kenya's three-tier VAT system explained. Standard 16%, zero-rated supplies (full list from First Schedule), and exempt supplies (Second Schedule).
How to issue VAT-compliant eTIMS invoices in Kenya. Required fields, QR codes, invoice types (E, T, C, D), and common formatting mistakes.
How KRA auto-populated VAT returns work, how to review and adjust pre-filled data, and what to do if the auto-populated amounts are wrong.
Complete guide to input VAT deduction in Kenya. What qualifies, time limits, apportionment for mixed supplies, blocked inputs, and documentation.
Withholding VAT explained - who deducts, who receives, 2%/6% rates, invoicing requirements, iTax reporting, and claiming credit for withheld VAT.
VAT on digital services - e-books, streaming, SaaS, online advertising. Non-resident rules, KRA registration, and how VAT applies to digital products.
How to apply for a KRA VAT refund. Excess input VAT, exported goods, refund process steps on iTax, required documents, and waiting times.
VAT changes from the Finance Act 2025 and 2026 - payment processing VAT, 90:10 rule removal, KDF exemption, mosquito repellent exemption.
How the Finance Act 2026 reclassified payment processing services from exempt to 16% VAT. Merchant fees, gateway fees, and compliance requirements.
How VAT applies to labour outsourcing - staff placement, temp labour, employee costs as disbursements vs taxable supplies.
eTIMS penalties by legal basis: what TPA s.86 and s.59A(5) actually provide, why figures like KES 1M/10% or KES 500,000/month are not enacted law, and where the KES 50,000 figure comes from.
VAT for Kenyan landlords - residential rent (exempt) vs commercial rent (16%), input VAT on construction, and mixed-use property apportionment.
VAT compliance for Kenyan restaurants, hotels, and caterers - food vs drink, accommodation, event catering, and common classification mistakes.
Import VAT at 16%, customs valuation, duty + VAT calculation, deferment, remission schemes, and documentary requirements.
What happens during a KRA VAT audit - notification, document requests, site visits, timeline, and how to prepare your records.
Step-by-step guide to applying for a KRA PIN online - individual, business, and non-resident applications on iTax.
When and how to deregister from VAT in Kenya. Below-threshold, business closure, voluntary deregistration, and the iTax process.
VAT treatment for NGOs in Kenya - exempt imports, input VAT on local purchases, VAT on grant income, and compliance obligations.
What KRA Status Code 500 means on iTax, why it happens, and how to fix it. Includes other common gateway and server error codes.
Kenya's Small Taxpayer Regime explained - who qualifies, turnover thresholds, tax rates, filing requirements, and how it compares to VAT and TOT.
What to do when eTIMS is down - offline invoicing procedures, KRA-approved methods, and how to stay compliant during system outages.
Complete eTIMS compliance checklist - hardware, software, invoicing, reporting, and record-keeping requirements.
KRA Tax Amnesty 2026 programme - voluntary disclosure, 100% penalty and interest waiver, how to apply on iTax, and eligibility criteria.
VAT for construction and real estate - commercial vs residential, input VAT on materials, subcontractor invoices, and land transactions.
Before you file your VAT return on iTax - complete checklist covering documents, calculations, reconciliations, and common errors to avoid.
Complete guide to getting a KRA Tax Compliance Certificate - requirements, iTax application steps, processing time, and what blocks issuance.
Why your KRA PIN might not be working on iTax - pending registration, deactivation, wrong format, and how to resolve each issue.
Why eTIMS invoices get rejected by KRA - common validation errors, incorrect fields, QR code issues, and how to resubmit.
Consequences of not registering for VAT - penalties, interest, backdated tax assessments, agency notices, and criminal prosecution risks.
Complete guide to filing nil returns on KRA iTax for VAT, income tax, and turnover tax: monthly nil returns, the No Obligation PIN status, and penalties.
Can you claim fuel, Safaricom internet, KPLC electricity, rent and M-Pesa payments as business expenses in 2026? The exact eTIMS receipt rules.
Corporate clients now demand eTIMS invoices before they pay. Small suppliers are losing accounts over late onboarding - here's the five-day fix.
KRA made eTIMS mandatory for all fuel stations by June 30, 2025. What to do when a station won't issue an eTIMS receipt, and what it costs owners.
A legal breakdown of KRA eTIMS penalties under Tax Procedures Act s.86 (as amended by Finance Act 2026) and s.59A(5), separating law from myths.
Does eTIMS let KRA spy on your M-Pesa balance, phone or bank account? Exactly what KRA can and cannot see through eTIMS in 2026.
Step-by-step guide to registering an individual KRA PIN online via iTax. Requirements, ID card upload, and activation.
Complete guide for non-citizens and expatriates on how to get a KRA PIN in Kenya. Requirements, passport upload, work permits, and online iTax steps.
Do digital creators, freelance developers, and remote consultants in Kenya need a KRA PIN and VAT registration? Threshold rules and eTIMS compliance.
Navigate KRA VAT audits, survive the Special Table review, and recover excess input VAT within the 12-month refund window under Finance Act rules.
What breaks in SME POS systems when tax authorities shift to real-time pre-clearance e-invoicing (like Uganda's EFRIS), and how to prepare.
KRA's transition to pre-filled (auto-populated) VAT returns starting January 2027, and how eTIMS and iCMS data will assemble your return automatically.
An honest comparison of DIY VAT registration on KRA iTax vs hiring Smart VAT Kenya. Portal crashes, 14+ error codes, time cost, and penalty risk.
Never miss the 20th KRA VAT filing deadline again. Every VAT, PAYE and TOT deadline on one free calendar page. Curated by Smart VAT Kenya.
Kenya now charges non-resident landlords a 30% final withholding tax on gross rental income under the Finance Act 2026. Who must register, deadlines, and penalties.
Kenya's SEP tax charges non-resident digital platforms an effective 3% of gross Kenyan revenue, with no minimum threshold. Who it hits and what it means for local freelancers and businesses.
Check your KRA iTax profile status, outstanding filing gaps, and Special Table / Tax Alert exposures before KRA flags you. Free check by Smart VAT Kenya.
KES 5M is the operative VAT registration threshold; the proposed KES 8M Finance Act 2025 rise is not in force. The real answer, verified against KRA guidance.
Step-by-step guide to creating a KRA PIN online - documents required, the iTax registration form, and common rejection reasons.
Everything you can claim as input VAT in Kenya - qualifying expenses, the eTIMS invoice requirement, timing rules, and documentation KRA accepts.
If your eTIMS device shows Device Not Registered, it has not been linked to your KRA PIN. How to register via eTIMS Lite and activate the device.
When your eTIMS Control Unit PIN is invalid, expired, or blocked: how to reset it, where to find the original PIN, and avoiding permanent lockout.
When KRA rejects your eTIMS invoice as a duplicate: what to check, how to re-issue, and how multi-device invoice prefixes prevent future duplicates.
When KRA rejects your eTIMS invoice over the buyer PIN: when it is actually required, how to verify a buyer KRA PIN, and what to do if they have none.
When KRA auto-fills a wrong VAT figure - inflated sales, missing purchases - how to dispute via Notice of Objection and document the correction.
The KRA VAT ledger is the master record of every amount you declared, paid, and owed. The four columns and how the auto-populated return pulls from it.
The auto-populated return credits input VAT only when suppliers transmit eTIMS invoices with your PIN. The 6-month rule and adding missing purchases.