The Kenya Revenue Authority (KRA) has announced changes in the filing process of Value Added Tax (VAT).

In a statement on Tuesday, November 28, KRA said VAT returns will be pre-filled with your tax information for a hassle-free filing experience starting January 2024.

“KRA wishes to notify the public and all VAT registered taxpayers that in an effort to leverage on technology and improve taxpayer experience, the VAT return will be pre-filled with tax information available to KRA with effect from the January 2024 tax period, to simplify the VAT return filing process for taxpayers,” read the statement in parts.

Further, the Authority said the pre-filled VAT return is a self-assessment and taxpayers must still confirm the accuracy of the declaration before submitting the return.

‘KRA advises taxpayers that the pre-filled VAT return shall be a self-assessment return as prescribed in Section 28(4) of the Tax Procedures Act, CAP 469B and a taxpayer shall not be relieved of the obligation to confirm the accuracy of the declaration before submission of the return,” read the statement.

KRA Further Guidelines                         

In this regard, the Authority reminded all taxpayers of their obligation to issue electronic tax invoices and transmit the invoice details to the Authority as prescribed in law.

“Please note that any input VAT claim that is not validated through TIMS/eTIMS or against existing customs import declarations for import VAT claims will not be allowed.

A list of approved eTIMS third party system-to-system integrators is available on the KRA website to facilitate compliance with electronic tax invoicing requirements,” explained the Authority.

Additionally, the Authority said it will conduct sensitization for taxpayers on the simplified VAT Return filing process.

Also, KRA will continue to support and facilitate all taxpayers to comply with the electronic tax invoicing requirements.

Again, the Authority thanked all compliant taxpayers and asked them to reach the Authority through Tel: (0) 20 4 999 999, 0711 099 999 or Email: call centre @ kra.go.ke www.kra.go.ke for further information.

What is VAT?

VAT is an indirect tax that is paid by the person who consumes taxable goods and taxable services supplied in Kenya and/or imported into Kenya.

The VAT on goods and services supplied in Kenya is collected at designated points by VAT registered persons who act as the agents of the Government.

However, VAT on imported goods and services are paid by the importer.

Any person supplying or who expects to supply taxable goods and taxable services with a value of Ksh.5 million or more in a year is required to register for VAT.

Where a person has not attained the Ksh.5 million threshold, voluntary registration can be granted subject to conditions.

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KRA VAT Payment Procedure

• Login to iTax using your PIN and password via https://itax.kra.go.ke.
• Click on Payments tab, select Payment Registration.
• Select Tax head as VAT.
• Select Tax Subhead as VAT.

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• Then select Payment Type as Self-Assessment. 
• Afterwards select Tax Period.
• Then select the liability and click on add.
• Select Mode of Payment as Other Payment Mode or RGTS.
• Click on the submit button.

The system will generate a Payment slip which you will download and use to make the payment.

Furthermore, a copy of the payment slip is sent to the taxpayer’s registered email address.

Also, taxpayers can make payment through any of the following methods. 

1.The bank using the Payment slip generated by the system.

2.M-PESA by using the Paybill number 222222, Account number is the Payment Registration Number, enter amount, MPESA PIN, press OK to complete the payment.