The 16% standard rate of VAT in Kenya, who must register with Kenya Revenue Authority (KRA), what a VAT invoice must show, and when returns and payments are due.
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Updated for 2026
Last reviewed September 2026
The rate
The standard rate in Kenya is 16%. Some goods and services carry reduced or zero rates and others are exempt. The difference matters: zero-rated sales still let you reclaim the tax on your purchases, exempt sales do not.
Who must register
Registration becomes compulsory once taxable turnover passes the threshold Kenya Revenue Authority (KRA) sets, measured over a rolling period. Below it, registration is usually voluntary, which makes sense if your customers are registered businesses that can reclaim what you charge.
Registration is compulsory once taxable supplies reach KSh 5 million in any 12 months; below that you may register voluntarily.
How to register
Register with Kenya Revenue Authority (KRA) on iTax (itax.kra.go.ke) using your KRA PIN. Once registered you receive a VAT registration number or certificate, and from that date you must charge VAT on taxable sales, issue compliant invoices and file returns even when nothing is due.
Charging VAT on an invoice
Show the net amount, the VAT rate, the VAT amount and the gross total, with your registration number in the header. Prices quoted to consumers should include VAT; prices quoted to businesses usually exclude it and say so. The Kenya calculator adds or removes VAT and shows the arithmetic.
The KRA PIN of both seller and buyer.
For VAT-registered sellers, an eTIMS control number and QR code; only eTIMS invoices are deductible for the buyer.
Filing and paying
Returns are periodic, most often monthly or quarterly, and report the VAT you charged less the VAT you paid on purchases. The difference is paid to Kenya Revenue Authority (KRA) by the return deadline; a repayment is claimed when purchases exceed sales.
Monthly VAT returns and payment are due by the 20th of the following month, filed on iTax. VAT-registered sellers must issue invoices through eTIMS.
Penalties for getting it wrong
Late registration, late returns and late payment each attract penalties and interest with Kenya Revenue Authority (KRA). Charging VAT while unregistered is an offence in most countries. If you missed the threshold, register now and declare the back period.
A late VAT return costs KSh 10,000 or 5% of the tax due, whichever is higher, plus interest at 1% a month on unpaid tax.
Questions people ask
How do I add VAT to a price?
Multiply the net price by 1.16. A KSh100 sale at 16% carries KSh16 of VAT and totals KSh116.
How do I remove VAT from a total?
Divide the gross by 1.16 to get the net, then subtract to find the tax. Dividing, not taking a percentage off, is the step people get wrong.
Should I register voluntarily?
If most of your customers are registered businesses, yes: they reclaim what you charge and you reclaim what you pay. If your customers are consumers, registration raises your prices by the tax rate or cuts your margin.
What if I am not registered?
Do not charge VAT and do not show a VAT line. State on the invoice that no VAT was charged. The generator prints that line when the toggle is off.
Written from published tax-authority guidance and reviewed on 2026-09-03. Everything here is indicative rather than a ruling on your circumstances, and rules change. Confirm anything you rely on with Kenya Revenue Authority (KRA) before acting on it, and tell us if you find something out of date so we can correct it.
This guide explains the rules in general terms and is not tax advice for your circumstances. Confirm your position with a qualified adviser or with Kenya Revenue Authority (KRA).
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Invoices, quotations, purchase orders, credit notes and waybills in KES, with VAT and the KRA PIN on the document. Plus a VAT calculator and a salary tax calculator. Everything runs in your browser and nothing is uploaded.