The Kenya VAT is a complicated tax that impacts small business owners. This guide explains the basics of this important revenue generator for your company, from rates and registration to returns!
About the Vat Calculator Kenya
|Standard Rate||Reduced Rate||Other Rates|
|16%||8%||0% and exempt|
How does VAT work in Kenya?
When you buy a chocolate bar from your favorite store, the price tag may include Value-Added Tax (VAT). This tax is charged at every point in the production and when it reaches me as an individual customer. I will then apply this charge to my purchase before eating or Enjoying the product!
What is the VAT rate in Kenya 2023?
The Value-Added Tax (VAT) in Kenya is 16 percent
What are the VAT rates in Kenya?
There are three tax rates that apply across Kenya:
16% – the standard rate for taxable goods and services, as well as imports
8% – the rate applied to the local supply of fuel, petroleum oils, etc.
0% – the rate applied to exports, international passenger transport, and zero-rated supplies (such as supplies sent to EPZs, diplomats, and governments)
Note: There is a 3% turnover tax on businesses below the VAT registration threshold, between KES 100,000 and 500,000
Who can pay VAT in Kenya?
To avoid paying the VAT amount, you can generate an e-slip from iTax portal. This slip will allow you to hand over your payment in person or by direct credit at Central Bank of Kenya as long it’s been approved for this use and sent directly through their system!
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