If you have paid more tax than you owe, whether through PAYE, VAT or withholding, the money is yours to claim. Getting it back, however, takes patience and good records. A claim that is complete the first time moves faster, and a claim that is tracked does not get forgotten.

Know what you are claiming

Refunds arise in a few common ways. An employee may have had too much PAYE deducted, a business may have paid more VAT on purchases than it charged on sales, or a withholding tax certificate may exceed the tax due. Each has a different route, but all begin with working out the exact figure. For employees, how to claim a PAYE refund from KRA explains the steps; for VAT, see import VAT: how to claim it back and shorter deadlines for VAT refund claims.

Prepare a clean claim

Before submitting, check three things:

  1. The return is filed and correct. A refund usually comes from a return that shows an overpayment, so errors there delay everything.
  2. The supporting documents are ready. Typical documents include the P9, withholding certificates, VAT invoices, eTIMS documents and bank details.
  3. Your PIN details are up to date. Wrong bank details or an outdated PIN profile are common causes of delay. See how to update your KRA PIN details.

Submit and keep proof

Submit the claim on iTax and save the acknowledgement. Note the date, the reference number and the amount. If you submit supporting documents separately, keep proof of delivery. The claim is only as good as the proof that it was made.

Track every step

Log each step in one place so you can answer any question from memory. The tax refund claim tracker records the claim date, the amount, the documents sent, each query and the date it was answered. A simple record like this has two benefits: you never lose track of a claim, and you can show KRA exactly what was sent and when.

Respond to queries quickly

KRA may ask for more information or invite you to a meeting before it approves a refund. Respond within the time given and give exactly what is asked, no more and no less. Keep a copy of every response. Delays in answering a query are one of the most common reasons a refund stays open for months.

Check the ledger

Once the refund is approved, it appears on your iTax ledger and is paid to the bank account on file, or it is offset against another tax you owe. Our guide to reading your iTax ledger and statement of account explains how to see the entry. Note that KRA may offset a refund against outstanding tax, interest or penalties, so settle any arrears separately if you want the cash.

When it stalls

If the claim sits without movement, follow up politely and in writing, quoting the reference number and the date. Start with the officer or office handling the claim, then the regional office. If the delay continues, escalate through the formal channels KRA provides, and keep a record of each contact. Being specific, calm and persistent works better than repeated angry calls.

Plan your cash around it

Do not count on a refund arriving by a certain date. For a business with a large VAT refund, the delay can affect cash flow, so build it into your forecast; cash flow forecast for a small business shows how. Keep claiming what is yours, but plan as if it will arrive late.

Common reasons a refund is delayed

Most delays have one of a few causes. The return may contain an arithmetic or classification error, so the system rejects it or flags it for review. Supporting documents may be missing, unreadable or inconsistent with the amounts claimed. The taxpayer may have unfiled returns or unpaid tax in another period, which can block the refund until they are settled. Bank details may be wrong or belong to someone else. Checking each of these before you submit is far quicker than correcting them later, so go through the list and fix what you can before you press the button.

Keep your own file

The records you hold matter here; see how to keep business records for KRA and how to organise your tax documents through the year for a simple system.

Keep one folder for each claim with the return, the acknowledgement, the supporting documents, every email and a note of each call. If an officer changes or a query comes months later, you can pick up exactly where you left off. Add the expected amount and the date you submitted so you can see how long it has been open.