How to Register for VAT Obligation on Itax. What is Value Added Tax (VAT)? VAT is an indirect tax that is paid by the person who consumes taxable goods and taxable services supplied in Kenya and/or imported into Kenya. VAT on goods and services supplied in Kenya is collected at designated points by VAT registered persons who act as the agents of the Government.
VAT is due on or before the 20th day of the following month. This includes both the return and payments and is submitted online via iTax. Remember to file a Nil VAT return if your business has no activity in a particular month.
Here is How to Register for VAT Obligation on Itax
- Begin by logging into the iTax portal using your KRA PIN and password.
- Upon successful login, locate the Registration Tab and choose the “Amend Pin Details” option.
- In this section, opt for the “Online Form” as your mode of amendment and proceed by clicking “Next.”
- On the Amendment tab, check the box corresponding to your PIN. This action will unveil the sections you intend to modify. Specifically, tick the box for “Source of Income.”
- If there are no further amendments, progress to the “Obligation Details” tab. Here, mark the VAT checkbox and indicate your desired registration date, usually the date of application. Provide an estimate of your turnover for the upcoming year.
- Within the “Source of Income Details” section, indicate your involvement in business income by selecting “Yes.” Proceed to input your business specifics and click the “Add” button upon completion. Indicate the sector of the economy your business operates in. Remember to repeat the “Add” button step. You have the option to use either your Business Registration Certificate or Single Business Permit for verification.
- Concluding the process, click on the “Submit” button. Download the acknowledgment form, which can also be accessed from your iTax registered email.
- Upon successful application for VAT obligation, visit any KRA office with the acknowledgment receipt and your business registration certificate for verification and approval. Once approved, you can initiate the filing of VAT charged on your taxable supplies.
