VAT Return Calculator Kenya 2026

What a VAT return does

A VAT-registered business reports each month on a VAT return, filed on iTax. The return compares the VAT it charged on sales (output VAT) with the VAT it paid on purchases (input VAT). If output is higher, the business pays the difference to KRA. If input is higher, the business has a credit, which it carries forward to offset future VAT or, in limited cases, claims as a refund.

How the calculator works

You enter your standard-rated sales, zero-rated sales and exempt sales for the month, the standard-rated purchases and expenses on which you can claim VAT, and any credit brought forward. Then it:

1. works out the output VAT at the standard rate, 16%, on standard-rated sales;
2. works out the input VAT you can claim on purchases;
3. subtracts the credit brought forward;
4. reports the VAT payable or the credit to carry forward;
5. shows the date the return and payment are due.

If your amounts already include VAT, tick the box and the calculator removes the VAT first.

A worked example

For standard-rated sales of KES 1,000,000 and claimable purchases of KES 400,000, output VAT is KES 160,000.00 and input VAT is KES 64,000.00, so the VAT payable is KES 96,000.00. If purchases are KES 1,500,000 instead, the result is negative, which means a credit to carry forward.

What input VAT you can claim

To claim input VAT you generally need a valid tax invoice, issued through eTIMS where required, showing your business PIN. The purchase must be for your taxable business activities. You cannot claim input VAT on exempt supplies, on certain items such as entertainment, or on goods and services for private use. If you make both taxable and exempt supplies, only part of the VAT on shared costs is claimable, in proportion to your taxable sales. This calculator takes the claimable figure you give it and does not apportion.

Zero-rated and exempt sales

Zero-rated sales appear on the return and carry 0% VAT, and they keep your right to claim input VAT. Exempt sales also appear but carry no VAT and do not give a right to claim input VAT on the costs that relate to them. Both are listed so you can check that your return covers all your sales.

Deadlines

The return and payment are due by the 20th of the month after the sales month. A return must be filed even in a month with no sales, which is called a nil return. A late return and late payment lead to penalties and interest, so use the penalty calculator if you are behind.

Credits and refunds

A credit carries forward month to month. A refund claim, for example by exporters, needs supporting documents and is reviewed by KRA, and it can take time. Whether a refund is available in your case depends on your sales and compliance record.

Limits

This calculator does not apportion input VAT or deal with special schemes, import VAT, withholding VAT credits or adjustments for bad debts. It is an estimate for information only, so check your return against your records and, if needed, with a tax agent.

Reconciling before you file

Before you file, reconcile the VAT on the return to your general ledger and to your eTIMS invoices. Check that every sale has an invoice, that every claimed purchase has a valid supplier invoice, and that credit notes and returns are included. A common reason for amended returns is purchases claimed in the wrong month. If you find an error after filing, correct it on the next return where the law allows, or file an amended return, and keep the working papers.

Guides, tools and templates for this topic

Read next: Bank reconciliation step by step: match your books to your bank, How to build a 12-month cash flow forecast for a small business, VAT for small businesses in Kenya: when to register and what to charge

Related calculators: VAT Calculator, VAT Registration Threshold Checker, KRA Late Filing Penalty and Interest Calculator

Excel templates: VAT return working sheet

More in the blog and the template shop, or ask for a custom template.