How to File a VAT Return on KRA iTax: Step-by-Step

Filing VAT Returns on KRA iTax: A Complete Kenyan Guide

If you're VAT-registered in Kenya, filing your return on the KRA's iTax platform is mandatory. As of 2026, the Kenya Revenue Authority (KRA) requires all VAT-registered businesses to submit returns electronically via itax.kra.go.ke. Missed deadlines attract penalties of up to KSh 5,000 per month, plus interest on unpaid VAT. This guide breaks down the exact process so you file correctly and on time.

Step 1: Access iTax and Verify Your KRA PIN

Log in to itax.kra.go.ke using your KRA Personal Identification Number (PIN) and password. Your PIN is a 10-digit number issued when you registered for VAT with KRA. If you've forgotten it, visit a KRA office or use the password reset function on the portal. Ensure your contact details and business address are current — KRA uses these for compliance correspondence.

Step 2: Navigate to the VAT Return Section

Once logged in, click on 'Tax Compliance' or 'Returns' in the main menu. Select 'VAT Return' from the dropdown. You'll see a list of open return periods. VAT returns in Kenya are filed monthly (for most businesses) or quarterly (for smaller entities). The return deadline is typically the 20th of the following month — for example, January returns are due by 20 February.

Step 3: Reconcile Your Input and Output Tax

This is where accuracy matters. You must record:

• Output tax: VAT you've charged customers (typically 16% in Kenya as of 2026)
• Input tax: VAT paid on business purchases — only claim this on invoices marked with a valid KRA PIN
• Exempt supplies: Sales on which you didn't charge VAT (e.g. certain financial services)

Cross-check your invoices and receipts against your accounting records. If discrepancies appear, correct them before submission — amendments after filing are flagged by KRA systems.

Step 4: Enter VAT Amounts and Select Payment Method

Input your calculated VAT liability (output tax minus input tax). If you owe money, iTax will display the amount due. If you have excess input tax, you can either claim a refund or carry it forward to the next period. Choose your payment method: M-Pesa, bank transfer, or cash at KRA offices. M-Pesa payments are processed instantly and appear on your iTax account within 24 hours.

Step 5: Submit and Confirm Receipt

Before submitting, review all figures one final time. Click 'Submit Return.' iTax will generate a unique submission reference number — save this for your records. You'll receive an SMS and email confirmation from KRA within seconds. Print this confirmation as proof of filing.

What if You Need Expert Help?

VAT reconciliation can be complex, especially if you handle multiple invoices monthly. Consider working with VAT registration experts who understand KRA requirements. Or find a verified Kenyan expert on Kaziiko to guide you through each filing cycle in 2026.