Another month ending, and that VAT return is still sitting there on your iTax dashboard, staring back at you. You’re not alone. Between chasing clients in Nairobi traffic and managing stock, tax filing feels like a complicated puzzle. But what if it didn’t have to be?
This guide breaks down exactly how to file your VAT returns on iTax. We’ll walk you through the login, the forms, and the payment. No jargon, just clear steps you can follow on your phone or laptop before the 20th of the month hits.
Before You Start: Get Your VAT Filing Duka Ready
You can’t cook without ingredients. Filing VAT is the same. Logging into iTax only to scramble for documents wastes precious time. Gather these items first.
You’ll need your KRA PIN and iTax password (or your registered phone for a quick password reset). Have your sales and purchase records for the period ready. This means all your issued invoices and all receipts from suppliers.
Ensure you have a stable internet connection. Trying to file during a heavy downpour in Nairobi when the power is flickering is a recipe for frustration. Do it during off-peak hours, like early morning or late evening, for a smoother experience.
What You Need to Have Handy
- Your KRA PIN and iTax credentials.
- Total value of taxable sales (output tax) for the period.
- Total value of taxable purchases (input tax) for the period.
- Your bank details or M-Pesa ready for payment if you owe KRA.
The Step-by-Step Process on iTax
Now, let’s get into the system. Follow these steps in order. Don’t panic if you make a small mistake; you can usually amend a return before the deadline.
Step 1: Log In and Navigate to Returns
Go to the official KRA iTax portal (itax.kra.go.ke). Use your PIN and password. Once in, look at the menu on the left. Click on “Returns” and then select “File Return”.
The system will show a list of your tax obligations. Find the one labeled “Value Added Tax” and click on the “File Return” button next to it. It will prompt you to select the period you are filing for.
Step 2: Filling the VAT 3 Form Accurately
This is the main event. You’ll be filling the digital VAT 3 form. The key boxes are:
- Box 12: Output Tax – Enter the total VAT you charged on your sales.
- Box 13: Input Tax – Enter the total VAT you paid on your business purchases.
- Box 16: VAT Payable – The system calculates this (Box 12 minus Box 13). If it’s positive, you pay KRA. If negative, you have a refund claim.
Double-check your figures. A common mistake is mixing up gross sales and VAT amounts. Take your time here.
Step 3: Submission and Payment
After reviewing, submit the return. If you have VAT payable, the system will generate a payment slip. You have two main options:
- Generate a Payment Slip and pay via your bank, PesaLink, or at selected supermarkets.
- Pay directly via M-Pesa using the KRA Paybill number 572572.
For M-Pesa, use your KRA PIN as the account number. The payment must reflect in iTax for your filing to be complete. Don’t just pay and forget to check!
Common Pitfalls & How to Avoid Them in Kenya
Many businesses, from startups in Nairobi’s Upper Hill to established shops in Kisumu, trip on the same hurdles. Knowing them keeps you safe.
The biggest pitfall is missing the 20th of the month deadline. Late filing attracts a penalty of KES 10,000 or 5% of the tax due, plus interest at 1% per month. That’s a hit no business needs.
Another issue is incorrect input tax claims. You can only claim VAT on purchases for business use. That fuel receipt for a personal trip to Naivasha? Leave it out. Keep your receipts organized—a simple file or even clear photos on your phone work.
Kenyan-Specific Context: Beating the System & The Refund Wait
Let’s talk about the real Kenyan experience. Filing is one thing; dealing with the outcomes is another. Every business owner knows the two big realities: the strict deadline and the infamous VAT refund wait.
KRA’s system is strict on the 20th. Treat it like catching the last SGR train to Mombasa at 3 PM—if you’re late, you’re stuck. Set a reminder on the 15th of every month. Use the early part of the month, before the mad rush, to reconcile your books.
If you’re in an industry like exports where you consistently claim refunds, brace yourself. The refund process can be slow, often taking months. The key is perfect documentation. Ensure every purchase invoice has your KRA PIN, the supplier’s PIN, a clear description, and the correct VAT. Any error gives KRA a reason to delay. Follow up persistently through the iTax system, not just phone calls.
Remember, the iTax system can be sluggish on the 19th and 20th. Everyone is trying to file last minute. Be smart and file by the 18th to avoid the system crashing on you.
What to Do After Filing Your VAT Return
You’ve clicked submit and made the payment. You’re done, right? Almost. Good record-keeping is what saves you during a tax audit.
Download and save a copy of the filed return and the payment receipt (the e-slip). Print a hard copy and file it with the sales and purchase records for that period. KRA can ask for these records up to five years later.
Use the “View Filed Returns” section on iTax to confirm the status. It should show as “Filed” and “Paid” if you settled any amount due. This is your proof of compliance.
Final Takeaway for Your Business
Filing VAT on iTax is a non-negotiable monthly task for Kenyan businesses. It’s a process of logging in, accurately transferring figures from your records to the VAT 3 form, and meeting the payment deadline. The stress comes from leaving it to the last minute or having messy records.
Treat it like a monthly utility bill—schedule it, prepare for it, and get it done. Consistent, on-time filing builds your compliance history with KRA, which can make other processes smoother. Now that you know the steps, log into iTax and clear that pending return today.
Got a specific question about input tax or exemptions? Drop it in the comments below—let’s help each other navigate the system.