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Work from an exclusive or inclusive amount: add or strip 16% VAT. Supports the standard rate and zero-rated (0%) supplies.
VAT at 16%
Ksh 8,000.00
TaxOS validates that supplier invoices carry the fields KRA needs for your VAT input to count.
Standard
16%
Most goods and services.
Zero-rated
0%
Taxable at 0%: you still reclaim input VAT (e.g. exports).
Exempt
No VAT
No VAT charged, and you cannot reclaim input VAT on related purchases.
Zero-rated ≠ exempt. SMEs confuse these constantly. The split changes with each Finance Act; confirm your sector on KRA’s site.
Register at KSh 5M
Mandatory once taxable supplies exceed (or are expected to exceed) KSh 5 million in any 12 months. You can register voluntarily below that.
Invoice via eTIMS
Every VAT-registered taxpayer must issue tax invoices from eTIMS. Each invoice needs your PIN, the VAT amount, and a serial number.
Reclaim input VAT (within 6 months)
Only on purchases backed by a valid eTIMS invoice where the supplier has declared the sale. Buying from non-eTIMS suppliers can get your input VAT denied.
File & pay by the 20th
The return and the payment are due by the 20th of the following month. File a nil return even with no transactions.
Keep records 5+ years
Sales, purchases, credit/debit notes, imports/exports, and accounting records.
Notify KRA within 21 days
Of any change to your registered business details (Tax Procedures Act).
Penalties
Late filing: KSh 10,000 or 5% of the tax due, whichever is higher. Late payment: 1% interest per month on the unpaid VAT.
eTIMS now applies to all persons in business, not only VAT-registered ones. eTIMS Lite covers non-VAT taxpayers. Based on published KRA guidance (2026); not legal advice.
These figures are educational estimates based on simplified, publicly available KRA rules and may not reflect your exact circumstances or the latest rates. They are not tax advice. Always confirm with KRA or a registered tax agent before filing or paying.