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Kenya VAT rates | ||
Rate | Type | Which goods or services |
16% | Standard | All other supplies of goods, services and imports |
0% | Zero | Exports of goods and services; international passenger transport; certain petroleum supplies |
0% | Exempt | Certain agricultural supplies; financial services; medical supplies; tour operator services; entrance to national parks; domestic passenger transport; medical; education and training; residential property; betting and gaming; domestic water |
3% | Turnover Tax | Turnover Tax on any business below the VAT registration threshold |
The date on which VAT is due is known as the tax point or time of supply. In Kenya, this is the earliest of the following:
For business-to-government (B2G) transactions, the government body must withhold 6% of the VAT due to the commercial vendor. A number of larger financial institutions are also required to withhold VAT settlements. This is paid directly to the tax office
VAT registered businesses must issue VAT invoices with the following details:
Foreign currency VAT invoices are permitted. The exchange rate used may be from any major publicly quoted exchange rate. Simplified invoices may also be issued for small value transactions for B2B and B2C transactions.
VAT returns are due on a monthly basis. The return and related VAT due must be filed by the 20th of the following month. Returns are filed electronically. Where the VAT suffered exceeds the sales VAT, then the credit may be rolled over or a reclaim made.
Foreign companies may not reclaim Kenyan VAT incurred unless they are VAT registered.
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