Grow · Step 3
VAT: when to register, how to file, how to claim
~15 min
VAT is the most-audited tax in Kenya. Get the mechanics right and you'll sleep at night.
When you must register
- Compulsory: taxable supplies above KES 5,000,000 in any 12-month rolling period.
- Voluntary: anyone — useful if your customers are VAT-registered and want to claim input VAT.
Rates
- 16% — standard rate on most goods and services
- 8% — petroleum products
- 0% — exports, certain agricultural inputs
- Exempt — financial services, education, medical (no VAT charged, no input VAT claimable)
Monthly filing in 6 steps
- Generate eTIMS invoices for every sale (compulsory since 2024).
- Capture supplier invoices with their PIN and ETR number.
- Log into iTax → Returns → VAT3.
- Upload the Excel template (or use online entry for low-volume).
- Submit by the 20th of the following month.
- Generate PRN and pay via M-Pesa Paybill 222222 (your PRN as account).
eTIMS is non-negotiable
Since 1 January 2024, only invoices issued through eTIMS are deductible expenses for the buyer. If you don't onboard eTIMS, your customers will stop buying from you because they can't claim input VAT or income-tax deductions.
Disclaimer
The information in this guide is provided for general guidance only and is subject to change. Fees, timelines, and regulatory requirements in Kenya are updated regularly. Before acting, please confirm details with the relevant authority (KRA, eCitizen, BRS, county government, or other regulator) or speak with a qualified MyBiashara advisor. MyBiashara is not liable for decisions made solely on the basis of this content.
