List Of Vatable Goods And Services In Kenya

List Of Vatable Goods And Services In Kenya

Value Added Tax (VAT) is a tax applied on the value added to goods and services at each stage in the production and distribution chain. It forms part of the final price the consumer pays for goods or services.

In this article Keweb.co tries to answer the question by publishing the full list of Vatable Goods And Services in Kenya

Below is the complete List of the Vatable Goods And Services In Kenya

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A trader will be required to apply on the iTax system for VAT obligation under only these two circumstances: –

  1. The trader expects to have or has an annual taxable turnover of Kshs. 5,000,000 and above
  2. Voluntary registration by a trader who makes or intends to make taxable supplies

Who should register for VAT?

KRA has restricted the addition of VAT obligation and set the following conditions and mandatory documentary requirements for approval of the same;

  1. Original CR12 for companies and Identity documents for directors or individuals including National Identity cards, passports, or Alien Identity Cards;
  2. A business permit from relevant bodies;
  3. Work permits for aliens;
  4. Tax Compliance Certificates for all directors;
  5. Letter of appointment of Tax Representative for non-resident companies and identity documents of directors for companies with non-resident directors;
  6. Contact details including physical address, verified telephone contacts, email addresses, utility meter numbers, and documents, office rent agreements;
  7. The website(s) or uniform resource locators (URLs) of the supplier through which business is conducted, where applicable;
  8. Contract agreements and/or sample invoices;

A Taxpayer who meets the above requirements can proceed to make an application for the addition of VAT obligation.

Registration is done online via iTax.

Once registered, you will be required to account for VAT charged on your taxable supplies through online monthly returns and pay any VAT due.

VAT Rates

There are 3 types of tax rates;

  1. 0% – for Zero rated supplies. Goods listed in the 2nd Schedule to the VAT Act e.g. Exportation of goods/services, goods supplied to EPZ, Privileged persons and Public bodies, etc.
  2. 8% – Petroleum oils obtained from bituminous, Motor Spirits (Diesel Supero, AViation spirit, etc.)
  3. 16% – General rate for other Goods and Services 

When is VAT payable?

It is important to note that tax is due and payable (earlier of) when;

  • Goods or services are supplied to the purchaser
  • An invoice is issued in respect of the supply
  • Payment is received for all or part of the supply
  • A certificate is issued by an architect, surveyor, or any person acting as a consultant or in a supervisory capacity in respect of the service 

How do I file for VAT in Kenya?

VAT returns are submitted monthly via iTax on or before the 20th of the following month.
Persons with no VAT to declare are required to submit a NIL return.


How do I pay for VAT in Kenya?

After filing the VAT return online via iTax, you are required to generate an E-slip which is used to physically pay the tax at the KRA-appointed Banks.
You may however authorize your bank to pay the tax through a direct credit transfer to the Commissioner account at the Central Bank of Kenya.

What is the penalty for late filing and paying in Kenya?

Date: On or before the 20th of the following month.

Penalty on late filing: Whichever is higher between, Kshs. 10,000 and 5% of the tax due

Penalty on late payment: 5% of the tax due and a late payment interest of 1% per month on the unpaid tax until the tax is paid in full.