VAT return to ledger reconciliation
Compare the output and input VAT on each return with your ledger, month by month, and see where the differences are.
A VAT return that does not agree with the books is an audit risk. For each month enter the output and input VAT on the return and the same figures from the ledger, and the workbook shows the differences, adds up the net difference and flags every month that needs investigation, so errors are found and fixed before KRA finds them.
Accountants, bookkeepers and finance managers of VAT-registered businesses who reconcile VAT every month or year.
What is included
- Output and input VAT per return and per ledger
- Difference for each month and in total
- Agrees or investigate status
- Count of months to investigate
- Chart of net differences by month
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How to use it
- For each month enter the output and input VAT per the return.
- Enter the same figures from the ledger.
- Read the difference and the status for each month.
- Investigate every month marked Investigate and record the fix.
Templates are tools to help with your own records. They are not tax or legal advice. Check the figures against official sources before filing or paying.
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What the vat return to ledger reconciliation does
A VAT return that does not agree with the books is an audit risk. For each month enter the output and input VAT on the return and the same figures from the ledger, and the workbook shows the differences, adds up the net difference and flags every month that needs investigation, so errors are found and fixed before KRA finds them.
Who it is for
Accountants, bookkeepers and finance managers of VAT-registered businesses who reconcile VAT every month or year.
How to use the workbook
- For each month enter the output and input VAT per the return.
- Enter the same figures from the ledger.
- Read the difference and the status for each month.
- Investigate every month marked Investigate and record the fix.
- Save a copy under a new name for each month or year, so earlier records stay as they were.
What is inside
- Output and input VAT per return and per ledger
- Difference for each month and in total
- Agrees or investigate status
- Count of months to investigate
- Chart of net differences by month
The workbook has these sheets: Instructions, Months, By month. The main table has the columns Month; Output VAT per return; Output VAT per ledger; Output difference; Input VAT per return; Input VAT per ledger; Input difference; Net difference. 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
- Reconcile every month, not once a year.
- Common causes are timing, credit notes and invalid invoices.
- Correct errors in the next return, with a note.
- Keep the reconciliation with the returns for five years.
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 return calculator, 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 Return Calculator
- Free calculator: VAT Calculator
- Guide: How to set up an M-Pesa till or Paybill for your business and account for it
- Guide: How KRA uses data matching and what it means for you
- Guide: How to protect your business from fraud and theft
- Another template: VAT basics cheat sheet for Kenyan businesses
- Another template: VAT input and output register (up to 2,000 invoices)
- Another template: VAT input invoice register
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