VAT registration readiness checker

What the vat registration readiness checker does

Registering for VAT late can be costly. Enter your taxable sales for each month and the sheet adds them up, compares the total with the registration threshold on the Rates sheet and tells you each month whether you are below it, close to it or over it, with the headroom left, so you register in time instead of finding out later.

Who it is for

Small business owners who may be approaching the VAT threshold, and bookkeepers who watch sales for clients.

How to use the workbook

1. Check the threshold on the Rates sheet against KRA's current figure.
2. Enter the taxable sales for each month.
3. Read the status for each month and the headroom at the top.
4. Register on iTax as soon as you are over or about to pass the threshold.
5. Save a copy under a new name for each month or year, so earlier records stay as they were.

What is inside

• Monthly sales and running total
• Threshold you can edit on the Rates sheet
• Below, close to or over the threshold
• Headroom left at the top
• Chart of running sales by month

The workbook has these sheets: Instructions, Sales, By month, Rates. The main table has the columns Month; Taxable sales; Total to date; Status. Yellow cells are for you to fill in and grey cells calculate by themselves, so leave the grey cells alone. The example rows show how it works; type over them with your own entries.

Tips for getting it right

• Count only taxable sales, including zero-rated ones.
• Look ahead: expected sales also count towards registration.
• Do not charge VAT before you are registered.
• Keep this sheet with your sales records.

Why keep this record

Most tax trouble comes from late or missing records rather than from the tax itself. When the figures are collected as they happen, preparing a return becomes a matter of copying totals, not of searching for receipts. A workbook that follows the same layout as the return also makes it easier to spot a number that looks wrong before KRA does, and to explain it if asked.

Questions people ask

Do I need to know Excel formulas? No. Type into the yellow cells and the rest is worked out for you. The formulas are visible if you want to see how a figure is reached.

Can I add rows or change the layout? You can add your own columns to the right and your own notes. If you insert rows inside a table, copy the grey formula cells down so the new rows calculate too.

Will it work on my phone or in Google Sheets? Yes for viewing and typing, but dropdown lists and the charts look best in desktop Excel or LibreOffice.

Keeping it safe and up to date

Tax figures change with each Finance Act, so check the Rates sheet against KRA's current guidance before you file. Keep the supporting documents with the workbook, and keep each year's copy for at least five years in case KRA asks for proof.

Read the KRA filing calendar for small businesses for the wider picture. Free calculators that go with it: Vat registration checker, Vat calculator. See more tax templates or ask us for a custom one.

The workbook works in Microsoft Excel, LibreOffice and Google Sheets. It is a tool to help you work out and record figures, not tax, legal or accounting advice, and it is not affiliated with the Kenya Revenue Authority. If something does not work as described, contact us and we will put it right.

Related guides, calculators and templates

• Free calculator: VAT Registration Threshold Checker
• Free calculator: VAT Calculator
• Guide: How to set up an M-Pesa till or Paybill for your business and account for it
• Guide: Tax on selling personal items and second-hand goods online
• Guide: Importing clothes and textiles: duty and classification
• Another template: Turnover tax vs VAT comparison workbook
• Another template: VAT basics cheat sheet for Kenyan businesses
• Another template: VAT registration and monthly filing guide

Need something different? Request a custom template, browse all guides or see every Excel template.