Before You Start: Gather Your Documents
Have these documents ready before you log in to iTax. Preparing everything in advance prevents timeout-related data loss.
Sales Register / eTIMS Invoice Summary
Your eTIMS-issued invoices for the month. The total sales figure on your return must match your eTIMS invoice register. Do not guess — run a report from eTIMS.
Purchase Register / Supplier Invoices
All purchase invoices from VAT-registered suppliers. You can only claim input VAT on invoices that are eTIMS-compliant and show your KRA PIN.
Credit Notes Issued and Received
Any refunds, returns, or adjustments made during the month. Credit notes reduce your output VAT (sales) or input VAT (purchases) for the period.
Withholding VAT Certificates
If your customers withheld VAT on your invoices, collect the withholding certificates. You claim the withheld amount as input VAT.
Bank and M-PESA Statements
Optional but recommended for reconciliation. Cross-check your recorded sales against actual deposits to catch discrepancies before KRA does.
Previous Month's Return
Keep last month's return handy for reference. Some figures (like capital goods adjustments) carry over from the previous period.
Sales Data: What to Include
Your VAT return requires a breakdown of sales by VAT rate. Prepare these figures for the month.
| Field | What to Enter | Source |
|---|---|---|
| Total sales (VAT inclusive) | Gross sales including 16% VAT | eTIMS invoice report |
| Sales at 16% | VAT-exclusive value of standard-rated sales | eTIMS invoice report |
| Sales at 0% | Zero-rated sales (e.g. exports, certain food items) | Invoice records |
| Exempt sales | Exempt supplies (e.g. residential rent, financial services) | Invoice records |
| Output VAT | 16% of the VAT-exclusive value of standard-rated sales | Calculated |
Common mistake: Entering total sales (VAT inclusive) in the field for sales at 16%. iTax expects the VAT-exclusive value. If your total invoice was KES 116,000, enter KES 100,000 in the sales field and KES 16,000 in the output VAT field.
Purchases and Input VAT
Input VAT is the VAT you paid on your business purchases. You can deduct this from the output VAT you collected, and remit only the difference.
| Field | What to Enter | Source |
|---|---|---|
| Total purchases (VAT inclusive) | Gross purchases including 16% VAT | Supplier invoices + eTIMS purchase register |
| Purchases at 16% (VAT exclusive) | Value of purchases before VAT | Supplier invoices |
| Input VAT claimed | 16% of the VAT-exclusive purchase value | Calculated from invoices |
| Capital goods purchases | High-value assets (buildings, machinery, vehicles) | Asset register + supplier invoices |
| Withholding VAT claimed | VAT withheld by customers (from withholding certificates) | Withholding VAT certificates |
Key rule: You can only claim input VAT on purchases used to make taxable supplies. If you make both taxable and exempt supplies, input VAT must be apportioned. See our input VAT deduction guide for full details.
iTax Entry: Step by Step
Follow these steps on itax.kra.go.ke to complete your VAT return.
Log in to iTax and navigate to VAT return
Log in at itax.kra.go.ke. Go to 'Returns' → 'File Return' → select 'VAT Return' for the relevant month. Use Chrome or Edge for best compatibility.
Enter sales figures from your prepared data
Enter all sales fields: total sales, standard-rated (16%), zero-rated (0%), and exempt sales. Do not enter thousand separators — type '100000' not '100,000'. Use a dot (.) not a comma (,) for decimals.
Enter purchase and input VAT figures
Enter total purchases, standard-rated purchases, and input VAT claimed. Include withholding VAT from certificates. Double-check each figure against your source documents.
Complete capital goods adjustment (if applicable)
If you purchased capital goods this period, enter the details. The CGA calculation is shown on your return. See our input VAT guide for CGA rules.
Review the calculated VAT payable or refund
iTax calculates: Output VAT - Input VAT = VAT payable (or refundable). If the amount looks wrong, go back and check your figures before submitting.
Submit and save the confirmation receipt
Click 'Submit'. If successful, iTax generates a confirmation receipt. Save or print this receipt as proof of filing. If you get a validation error, check the pre-submission validation section below.
Pre-Submission Validation Check
Run through these checks before you click submit. Catching an error here saves you from a rejected return and potential late filing penalty.
- Sales figures match your eTIMS invoice register for the month.
- No thousand separators (commas) in any number field.
- Decimal points use a dot (.), not a comma.
- VAT-exclusive figures are entered correctly (not VAT-inclusive in the wrong field).
- Input VAT claimed matches 16% of your standard-rated purchases (unless partially exempt).
- Withholding VAT amounts are entered in the correct field.
- Nil returns have zeros in every field — no blank fields.
- The VAT payable/refundable amount looks reasonable for your business.
- You have saved a copy of your source data (in case iTax times out).
- Internet connection is stable — use a wired connection if possible.
After Submission: Confirm and Pay
Submitting the return is only half the process. You must also pay any VAT due by the 20th.
Save the confirmation receipt
iTax shows a confirmation page after successful submission. Save it as PDF or take a screenshot. This is your proof of filing if KRA disputes the return later.
Check your email for the submission receipt
iTax sends a confirmation email to your registered address. If you do not receive it within 30 minutes, your submission may have failed. Log in and check your return status.
Pay any VAT due via M-PESA or bank transfer
Use M-PESA Paybill 572572. Account number: your KRA PIN + 000V (e.g. P0123456789V). Payment must be received by the 20th. Late payment attracts 2% interest per month.
Confirm payment reflects on iTax
Payments typically reflect within 30 minutes. Check 'Payment History' on iTax to confirm. If it has not reflected after 24 hours, contact KRA with your M-PESA confirmation code.
File nil returns if you had no activity
Even if you had no sales or purchases, you must still log in and file a nil return. A nil return has zeros in all fields. Missing a nil return attracts the same KES 10,000 penalty.
Common Mistakes That Cause Rejection
| Mistake | Fix |
|---|---|
| Using comma as decimal separator | Use a dot (.) for decimals. Type '1500.50' not '1,500.50' or '1500,50'. |
| Entering VAT-inclusive amount in VAT-exclusive field | If your sale was KES 116,000 including VAT, enter KES 100,000 in the sales field and KES 16,000 in the output VAT field. |
| Leaving fields blank instead of entering zero | Every field must have a value. Enter 0 (zero) for any field that does not apply. |
| Claiming input VAT on non-compliant supplier invoices | Only claim input VAT on eTIMS-compliant invoices from VAT-registered suppliers that show your KRA PIN. |
| Filing for the wrong tax period | Double-check the month and year in the return header. January return goes in the February filing window. |
| Not reconciling sales with eTIMS before filing | Your VAT return sales figures must match your eTIMS invoice register. KRA cross-checks both systems. |
Filing Stress? Let Us Handle It
Our KRA-registered agents file your VAT return on iTax every month. You send us your sales and purchase figures on WhatsApp — we handle the rest. KES 3,500/month. No long-term contract.
Frequently Asked Questions
- What is the deadline for filing VAT returns in Kenya?
- VAT returns must be filed on or before the 20th day of every month for the preceding month. For example, the January return is due by 20 February. If the 20th falls on a weekend or public holiday, the deadline moves to the next working day. Late filing attracts a penalty of KES 10,000 per month or part of a month.
- What documents do I need to file a VAT return?
- You need: (1) Sales summary for the month — total sales, zero-rated sales, exempt sales, and VAT-exclusive sales. (2) Purchase summary — total purchases, input VAT claimed, and capital goods purchases. (3) eTIMS invoice register to reconcile sales figures. (4) Bank statements or M-PESA statements to confirm receipts. (5) Withholding VAT certificates if you have been subject to withholding VAT. Our checklist below covers every item you need.
- Can I file a nil VAT return if I had no sales?
- Yes. If you had no sales or purchases in a given month, you must still file a nil return. Filing nil returns is mandatory for all VAT-registered businesses every month, even if there is no activity. Failure to file a nil return attracts the same KES 10,000 penalty as a late return. See our nil returns guide for step-by-step instructions.
- What happens if I make a mistake on my submitted VAT return?
- Once submitted, a VAT return cannot be edited. If you discover an error, you must wait for the next period and correct it in that return, or contact KRA to request an amendment. To avoid errors, always use this checklist before submitting. Most errors involve incorrect decimal formats, missing fields, or mismatched totals.
- How do I pay VAT after filing the return?
- VAT can be paid via M-PESA Paybill 572572 (business number). Your account number is your KRA PIN followed by the payment code 000V (e.g. P0123456789V). Alternatively, you can pay via bank transfer to KRA's collection account. Payment must be made by the same 20th deadline. Late payment attracts interest at 2% per month on the unpaid amount.