VAT Return Form (Kenya)
VAT RETURN FORM
Value Added Tax Act No. 35 of 2013 — Section 34 | Tax Procedures Act No. 29 of 2015 | Kenya Revenue Authority
Date of filing: [Filing Date]
TAXPAYER DETAILS
KRA PIN: [KRA PIN]
VAT Registration Number: [VAT Reg Number]
Registered name: [Legal Name]
Tax period: [Tax Period Month] [Tax Period Year]
Return type: [Return Type]
This return is submitted under Section 34 of the Value Added Tax Act No. 35 of 2013 for the tax period stated above. The standard tax period is one calendar month. Filing is mandatory each month — a nil return must be submitted where no taxable supplies were made.
PART A — OUTPUT TAX SCHEDULE
1. Standard-rated sales (16%) — taxable value: [Standard Rated Sales]
2. Output VAT on standard-rated sales: [Standard Rated VAT]
3. Zero-rated sales (0%) — value: [Zero Rated Sales]
4. Exempt sales — value: [Exempt Sales]
5. Total output VAT for the period: [Total Output Tax]
Output tax represents VAT charged at the applicable rate on all taxable supplies of goods and services made in Kenya during the tax period. Standard-rated supplies are taxed at 16%. Zero-rated supplies listed in the Second Schedule of the VAT Act No. 35 of 2013 are taxed at 0% — the supplier may still claim input VAT on inputs used to make those zero-rated supplies. Exempt supplies are outside the VAT system. Sales to other VAT-registered businesses must comply with the KRA Electronic Tax Invoice Management System (eTIMS) requirements introduced under the VAT (Electronic Tax Invoice) Regulations 2020.
PART B — INPUT TAX SCHEDULE
6. Input VAT on local purchases: [Local Purchases Input VAT]
7. Import VAT (customs entry Form C17): [Import VAT]
8. Adjustments / credit notes / prior period corrections: [Adjustments]
9. Total deductible input VAT for the period: [Total Input Tax]
Input tax is deductible under Section 17 of the VAT Act No. 35 of 2013 where: the registered person is VAT-registered; the goods or services are used to make taxable supplies; and the deduction is supported by a valid tax invoice under Section 42 of the Act or a customs entry for import VAT. Input tax on purchases used for both taxable and exempt activities must be apportioned under the partial exemption rules in Section 19 of the VAT Act. Input tax on motor vehicles — other than those used in the business of transporting passengers or goods for hire — is blocked. Input tax claims must be made within six months of the invoice date.
PART C — NET VAT POSITION
10. Total output VAT: [Total Output Tax]
11. Less: Total deductible input VAT: [Total Input Tax]
12. Net VAT payable to KRA: [Net VAT Payable]
13. Input tax credit carried forward / refund claimed: [Input Tax Credit]
14. KRA payment reference number (PRN): [Payment Reference]
15. eTIMS compliance status: [eTIMS Compliance]
Where net VAT is payable, the amount must be remitted to the Kenya Revenue Authority through the KRA eCitizen platform or approved mobile payment channel by the 20th day of the month following the end of the tax period under Section 34 of the VAT Act No. 35 of 2013. Late payment attracts interest at 1% per month (simple interest) from the due date under Section 90 of the Tax Procedures Act No. 29 of 2015. Late filing attracts a penalty of 5% of the tax payable or KES 10,000, whichever is higher, under Section 83 of the Tax Procedures Act.
Where input tax exceeds output tax, the credit balance is carried forward to the next tax period or a VAT refund is applied for under Section 47 of the VAT Act. KRA processes refund applications within 90 days subject to pre-refund audit verification.
DECLARATION
I declare that the information given in this return is true, correct, and complete to the best of my knowledge and belief. I am aware that filing a false or misleading VAT return is an offence under Section 96 of the Tax Procedures Act No. 29 of 2015, which provides for fines of up to KES 1,000,000 and imprisonment for up to three years. All VAT records supporting this return — including tax invoices, credit notes, import entries (Form C17), and VAT account records — are retained and available for inspection by the KRA Commissioner of Domestic Taxes for a minimum of five years under Section 44 of the VAT Act and Section 23 of the Tax Procedures Act.
Authorised Signatory
________________
Signature
Witness
________________
Signature
What Is a VAT Return Form (Kenya)?
A VAT Return Form in Kenya records the income, deductions and tax due for the period it covers.
The Value Added Tax Act No. 35 of 2013 replaced the former VAT Act Cap. 476 and significantly modernised Kenya's VAT administration. Since the full implementation of the KRA iTax platform, all VAT returns in Kenya are filed electronically through itax.kra.go.ke — paper returns are not accepted for standard VAT-registered taxpayers. The iTax system pre-populates certain fields from previous returns and from the taxpayer's registration data, and generates an electronic acknowledgement receipt (VAT 3 Acknowledgement) upon successful submission.
Output tax is VAT charged at the applicable rate — 16% for standard-rated supplies, 0% for zero-rated supplies listed in the Second Schedule of the VAT Act — on all taxable supplies of goods and services made by the registered person during the tax period. Input tax is the VAT paid or payable by the registered person on purchases and imports of goods and services used to make taxable supplies, which the registered person is entitled to deduct from output tax under Section 17 of the VAT Act. Where input tax exceeds output tax in any period, the excess is an input tax credit that may be carried forward to subsequent periods or, in the case of exporters and other persistent credit-position taxpayers, applied for as a refund under Section 47 of the VAT Act.
The VAT Return Form documents the complete output-input-net calculation for the tax period and serves as the primary basis for KRA compliance audits, risk assessments, and any subsequent VAT assessments raised by the Commissioner of Domestic Taxes under Section 31 of the Tax Procedures Act No. 29 of 2015. Forms-legal.com provides this Kenya VAT Return Form template as a working document for businesses preparing their monthly VAT return data before uploading to iTax.
The legal framework governing the VAT Return Form (Kenya) in Kenya draws on several key statutes and regulatory bodies. Under Kenyan law, the Constitution of Kenya 2010 is the supreme law. The Law of Contract Act (Cap. 23) governs contractual obligations. The Kenya Revenue Authority (KRA) administers tax under the Income Tax Act (Cap. 470). The High Court of Kenya, established under Article 165 of the Constitution, has unlimited original jurisdiction. The Data Protection Act No. 24 of 2019 and the Office of the Data Protection Commissioner (ODPC) govern personal data. Parties executing a VAT Return Form (Kenya) in Kenya should confirm the document reflects current law, including any amendments enacted since the original drafting date. The Value Added Tax Act No. 35 of 2013 sets the foundational requirements.
When Do You Need a VAT Return Form (Kenya)?
A VAT Return Form in Kenya must be filed by every VAT-registered person for each tax period, regardless of whether any taxable supplies were made or VAT is payable. Section 34 of the Value Added Tax Act No. 35 of 2013 makes filing mandatory — a nil return must be submitted in any month where the registered person has made no taxable supplies.
A VAT Return is required monthly for every business that holds a VAT Registration Certificate issued by the KRA Commissioner of Domestic Taxes under Section 5 of the VAT Act. The return covers all standard-rated supplies at 16%, zero-rated supplies at 0%, and all input tax claims for the period. The filing deadline is the 20th day of the month following the end of the tax period — for example, the return for January must be filed and any VAT payable remitted by 20 February.
A VAT Return is required following importation of goods into Kenya. Import VAT is paid at the point of entry through the KRA Customs Services Department — the importer completes a customs entry (Form C17) and pays VAT together with import duty. The import VAT paid is then included in the input tax section of the periodic VAT return as a deductible amount, subject to the taxable use conditions in Section 17 of the VAT Act.
A VAT Return is needed by businesses applying for a VAT refund under Section 47 of the VAT Act. Exporters, manufacturers supplying zero-rated goods, and embassies or international organisations entitled to VAT relief accumulate input tax credits over time. The VAT Return is the vehicle through which the credit position is established and the refund application is initiated through iTax.
A VAT Return Form is required when a business is subject to a KRA compliance audit or desk review. The Commissioner of Domestic Taxes under the Tax Procedures Act No. 29 of 2015 may request copies of filed returns, supporting schedules, and transaction records for any period within the five-year limitation period for tax assessments.
Parties in Kenya should prepare a VAT Return Form (Kenya) proactively rather than waiting for a dispute to arise. Courts interpret agreements based on the written terms rather than oral representations. Under Kenyan law, the Constitution of Kenya 2010 is the supreme law. The Law of Contract Act (Cap. 23) governs contractual obligations. The Kenya Revenue Authority (KRA) administers tax under the Income Tax Act (Cap. 470). The High Court of Kenya, established under Article 165 of the Constitution, has unlimited original jurisdiction. The Data Protection Act No. 24 of 2019 and the Office of the Data Protection Commissioner (ODPC) govern personal data. Where the transaction involves regulated activities, prior approval from the relevant authority may be required before execution.
What to Include in Your VAT Return Form (Kenya)
A complete and accurate VAT Return Form in Kenya for a given tax period must include the following essential elements.
Taxpayer Details: The KRA PIN, VAT Registration Number, full legal name, and tax period (month and year) to which the return relates. These details identify the return on the KRA iTax system and link it to the taxpayer's VAT account. Errors in the PIN or tax period reference can result in the return being misallocated, attracting unnecessary late-filing penalties under the Tax Procedures Act No. 29 of 2015.
Output Tax Schedule: A breakdown of all taxable supplies made during the tax period by category — standard-rated supplies at 16% and zero-rated supplies at 0% — showing the taxable value (exclusive of VAT) and the VAT amount charged. Sales to other VAT-registered businesses must be matched against the input tax claims of the purchasing businesses through the KRA's electronic tax invoice management system (eTIMS), which became mandatory for large and medium taxpayers from 2023.
Input Tax Schedule: A breakdown of all input tax claimed during the tax period, including VAT on local purchases supported by valid tax invoices issued under Section 42 of the VAT Act, and import VAT paid on goods cleared through KRA Customs. Input tax may only be claimed where the goods or services are used to make taxable supplies — input tax on purchases used for exempt supplies or for private purposes is not deductible under Section 17 of the VAT Act.
Net VAT Calculation: The net VAT position for the tax period — output tax minus deductible input tax. Where output tax exceeds input tax, the difference is VAT payable to KRA, which must be remitted through the KRA eCitizen or mobile payment platforms by the 20th of the following month. Where input tax exceeds output tax, the excess is a carried-forward credit or a refund claim.
Adjustments and Credit Notes: Any adjustments arising from credit notes issued or received during the period, bad debt relief claims under Section 20 of the VAT Act, or corrections to prior period returns. Adjustments must be documented with supporting credit notes and correspondence.
Zero-Rated Exports Supporting Documentation: For businesses claiming zero-rating on exported goods under the Second Schedule of the VAT Act, the return should be supported by export documentation — shipping bills, airway bills, or bills of lading — confirming that the goods physically left Kenya. The KRA may require this documentation during an audit or refund verification.
KRA Electronic Tax Invoice Management System (eTIMS): From 2023, the KRA has progressively rolled out the eTIMS requirement, under which VAT-registered businesses must issue tax invoices through KRA-integrated fiscal devices or electronic billing software. ETIMS-generated invoices carry a unique KRA control unit invoice number that is required for input tax claims by the purchasing business. VAT returns for periods in which eTIMS is applicable must reflect invoice data consistent with the eTIMS records.
Forms-legal.com provides this Kenya VAT Return Form template as a structured worksheet for computing and verifying VAT return figures before submission through KRA iTax. Businesses with complex VAT positions — including partial exemption calculations under Section 19 of the VAT Act, group VAT registrations, or refund claims — should engage a tax advisor registered with the Institute of Certified Public Accountants of Kenya (ICPAK) or a VAT specialist advocate admitted by the Law Society of Kenya (LSK).
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year = {2026},
howpublished = {\url{https://forms-legal.com/kenya/government/tax-forms/vat-return-form-kenya}},
note = {Free legal document template}
}Also available for these jurisdictions:
Frequently Asked Questions
Under Section 34 of the Value Added Tax Act No. 35 of 2013, a VAT-registered person must file a return for each tax period — which is one calendar month — and remit any VAT payable by the 20th day of the month following the end of the tax period. For example, the VAT return for the month of March must be filed and any net VAT payable must be remitted to the KRA by 20 April. This filing obligation applies every month without exception — a nil return must be filed in any month where the business made no taxable supplies. Late filing attracts a penalty under Section 83 of the Tax Procedures Act No. 29 of 2015 equal to 5% of the tax payable or KES 10,000, whichever is higher. Late payment of VAT attracts interest at 1% per month (simple interest) from the due date until the date of actual payment under Section 90 of the Tax Procedures Act. All VAT returns in Kenya are filed electronically through the KRA iTax portal — paper submissions are not accepted for standard VAT taxpayers. KRA regularly identifies non-filers through its electronic audit matching system and may raise estimated assessments for unfiled periods.
Input tax in Kenya is the VAT paid or payable on purchases and imports of goods and services by a VAT-registered person, which is deductible against output tax under Section 17 of the Value Added Tax Act No. 35 of 2013. To qualify for input tax deduction, the following conditions must be met: the purchaser must be a VAT-registered person; the goods or services must be acquired for use in making taxable supplies (not exempt supplies or private use); the deduction must be supported by a valid tax invoice issued by a VAT-registered supplier in compliance with Section 42 of the VAT Act, or by a customs entry (Form C17) for import VAT; and the deduction must be claimed within the tax period in which the invoice was received or within a period of six months thereafter. Input tax on goods and services used for both taxable and exempt supplies must be apportioned using the partial exemption method under Section 19 of the VAT Act. Input tax on motor vehicles (other than those used in the business of transporting passengers or goods for hire) is specifically blocked under the Second Schedule of the VAT Act. From 2023, KRA eTIMS-compliant invoices are required to support input tax claims for large and medium taxpayers.
A VAT refund arises under Section 47 of the Value Added Tax Act No. 35 of 2013 where a registered person's input tax for a tax period exceeds their output tax, resulting in a net credit balance. Common scenarios include exporters who zero-rate their supplies but incur input VAT on their inputs, and manufacturers supplying zero-rated goods. To claim a refund, the registered person files the monthly VAT return through KRA iTax showing the credit position and makes a formal refund application through the iTax portal. The KRA Commissioner of Domestic Taxes is required to pay the refund within 90 days of the refund application, subject to audit verification. In practice, KRA typically conducts a pre-refund audit to verify the input tax claims before releasing funds, and the process can take longer than the statutory period for complex refund claims. Supporting documentation for a refund claim includes: tax invoices for all input tax claimed; export documents (shipping bills, airway bills, or bills of lading) for zero-rated export claims; bank statements evidencing receipt of export proceeds in foreign currency; and stock records. Businesses with persistent credit positions may elect to carry forward the credit rather than claim a refund, and offset it against future output tax liabilities.
The KRA Electronic Tax Invoice Management System (eTIMS) is a digital invoicing platform introduced by the Kenya Revenue Authority to improve VAT compliance and combat invoice fraud. ETIMS requires VAT-registered businesses — initially large taxpayers and progressively extended to medium and small taxpayers — to issue and transmit tax invoices through KRA-approved fiscal devices (Electronic Tax Registers, ETRs) or KRA-integrated electronic billing software. Each eTIMS-generated invoice carries a unique KRA control unit invoice number and a QR code that can be verified on the KRA iTax portal. The eTIMS requirement was introduced under the VAT (Electronic Tax Invoice) Regulations 2020 and has been progressively phased in. From a VAT return perspective, eTIMS has two key impacts: first, input tax claims by purchasing businesses must be supported by eTIMS-compliant invoices — non-eTIMS invoices risk being disallowed during KRA audits; second, KRA's audit matching system automatically cross-checks the output tax reported by a supplier against the input tax claimed by the purchasing business, making mismatches immediately visible to the Commissioner of Domestic Taxes. Businesses should ensure their accounting systems are integrated with eTIMS before the compliance deadline applicable to their taxpayer category to avoid penalties under the Tax Procedures Act No. 29 of 2015.
A VAT return is a voluntary self-assessment filed by the registered taxpayer through KRA iTax under Section 34 of the Value Added Tax Act No. 35 of 2013, in which the taxpayer declares their output tax, input tax, and net VAT position for the tax period. A VAT assessment, by contrast, is a determination of VAT liability raised by the KRA Commissioner of Domestic Taxes under Section 31 of the Tax Procedures Act No. 29 of 2015 — either because the taxpayer failed to file a return, filed an incorrect or incomplete return, or because the Commissioner disagrees with the self-assessed figures following an audit. An assessment may be raised within five years of the end of the tax period to which it relates, or at any time where fraud or gross negligence is involved. A taxpayer who disputes a VAT assessment may object in writing to the Commissioner within 30 days of receiving the assessment notice under Section 51 of the Tax Procedures Act, setting out the grounds of objection and any supporting evidence. Unresolved objections may be appealed to the Tax Appeals Tribunal (TAT) established under the Tax Appeals Tribunal Act No. 40 of 2013, and further to the High Court of Kenya. Taxpayers should retain VAT records for at least five years to support any objection or appeal.
A business that makes both taxable supplies (standard-rated or zero-rated) and exempt supplies listed in the First Schedule of the Value Added Tax Act No. 35 of 2013 must apply the partial exemption rules under Section 19 of the VAT Act when computing input tax on its VAT return. The partial exemption calculation determines what proportion of the total input VAT incurred can be deducted — the recoverable portion relates to inputs used for taxable supplies, while the non-recoverable portion relates to inputs used for exempt supplies. The standard partial exemption method uses a ratio of taxable turnover to total (taxable plus exempt) turnover for the period, expressed as a percentage, which is applied to the total residual input VAT (VAT on inputs used for both taxable and exempt activities). The resulting recoverable amount is included in the input tax claim on the VAT return. Partial exemption calculations require careful attribution of input costs to taxable and exempt activities, and businesses with significant exempt activities — such as financial institutions, insurance companies, and educational institutions that also conduct ancillary taxable activities — may need to agree a special partial exemption method with the KRA Commissioner of Domestic Taxes. Errors in partial exemption calculations are a common finding in KRA VAT audits and can result in assessments for underpaid output tax or disallowed input tax claims.
This template is provided for informational purposes only and does not constitute legal advice. Laws vary by jurisdiction and change over time. Consult a qualified attorney for advice specific to your situation.Full disclaimer
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