Instantly calculate VAT-inclusive and exclusive prices for your business.
Value Added Tax (VAT) is an indirect tax charged on most goods and services consumed in Kenya, including imports. When you buy something taxable, VAT is included in the price — meaning the final consumer pays it.
VAT on local purchases is collected by VAT-registered businesses on behalf of the government. VAT on imported goods and services is paid by the importer.
You must register for VAT if:
VAT-registered businesses use a KRA PIN with a VAT obligation and must also onboard to eTIMS.
VAT operates on an Input–Output Tax system:
Output Tax – Input Tax = VAT Payable
If your input tax is higher than your output tax, the excess can be carried forward or refunded in specific cases.
1,920 (Output VAT) – 1,600 (Input VAT) = 320
Kenya has two active VAT rates:
VAT returns and payments must be submitted on or before the 20th of the following month via iTax.
A valid tax invoice must:
Credit notes can be issued within six months after the original invoice.
You can claim input VAT if:
Excess input VAT can be carried forward or refunded if it arises from:
Businesses must keep proper VAT records (digital or physical) to support all transactions — invoices, statements, payment proofs, etc.
VAT becomes due at the earliest of:
Non-resident businesses selling services online to Kenyan users must register for VAT regardless of turnover. KRA provides a simplified registration and filing system for foreign suppliers.
You may apply for VAT deregistration if:
You must continue filing returns until KRA confirms deregistration.
Reverse VAT applies to services imported into Kenya.
Who pays it? Anyone receiving imported services — whether VAT-registered or not.
When is it due? At the earliest of:
If you’re VAT-registered and use the service for taxable business, you may claim it as input tax later.
Some appointed agents deduct 2% VAT at source when paying suppliers.
Notes:
KRA uses the VAT Special Table in iTax to identify taxpayers with VAT filing issues (e.g., nil filers, non-filers, missing trader investigations).
If onboarded:
Kenya requires all VAT-registered businesses to issue electronic tax invoices via:
eTIMS is free, flexible, and works on phones, computers, and POS systems.
The standard VAT (Value Added Tax) rate in Kenya is 16%. However, some goods and services are zero-rated (0%) or exempt from VAT. Always confirm the correct rate for your specific item with the Kenya Revenue Authority (KRA).
To add 16% VAT to a price, you multiply the net amount by 1.16. To remove 16% VAT from a gross (VAT-inclusive) price, you divide the gross amount by 1.16 to find the net price. Our calculator does this automatically for you.
Yes. Simply enter the total amount, and select the 'Price is VAT Inclusive' (or 'Remove VAT') mode. The calculator will automatically show you the original net price and the VAT amount that was included.
Zero-rated supplies are taxable goods and services, but the VAT rate is 0%. Businesses can still claim input tax on these items. Exempt supplies are not subject to VAT at all, and businesses cannot claim input tax on them. This calculator can handle zero-rated items by setting the VAT rate to 0%.
According to the KRA, any person supplying or expecting to supply taxable goods and services with a value of KES 5 million or more in a year is required to register for VAT. Voluntary registration is also possible for smaller businesses.
For the most accurate and up-to-date information, always refer to the official Kenya Revenue Authority (KRA) website.