KRA VAT Filing Deadline August 2026: Don't Miss the 20th

Every month, thousands of Kenyan business owners wake up on the 21st and realise they missed the VAT filing deadline. The penalty hits automatically — KES 10,000 or 5% of the tax due (whichever is higher), plus 1% interest per month. And if you filed a nil return late? Still KES 10,000.

What You Need to File

Your VAT return must include:

• Total sales (taxable, zero-rated, and exempt)
• Total purchases (with valid eTIMS invoices)
• Output VAT charged to customers
• Input VAT claimed on purchases
• Net VAT due or refundable

If you had zero sales and zero purchases in July, you still need to file a nil return. Skipping it costs KES 10,000.

How to File on iTax

1. 1.Log in to itax.kra.go.ke with your KRA PIN and password.
2. 2.Go to Returns → VAT Return.
3. 3.Select the tax period (e.g., July 2026).
4. 4.Enter your sales and purchase figures (or use the auto-populated return).
5. 5.Review the calculated VAT due.
6. 6.Submit and get your acknowledgement receipt.

What Happens If You Miss the Deadline

KRA automatically imposes:

• KES 10,000 late filing penalty (even for nil returns)
• 5% of the tax due (if higher than KES 10,000)
• 1% interest per month on the unpaid tax
• Possible blocking of your KRA compliance certificate
• Risk of being placed on the VAT Special Table

Already Missed a Deadline?

You can apply for a KRA penalty waiver. The process requires a written application explaining the cause of non-compliance, and KRA may waive the penalties if you demonstrate reasonable cause. We handle this for KES 4,000 per application.

See our full guide: KRA Penalty for Late VAT Filing — includes the waiver application process and a calculator to estimate your exposure.