Kenya VAT-3 Monthly Return — iTax Filing

Confirm the taxpayer holds a valid KRA PIN and VAT registration number, is above the KES 5,000,000 annual threshold (or voluntarily registered), and identify the exact tax period (month/year) being filed. Establish business type — fully taxable, partially exempt, or mixed — because partial exemption triggers input-tax apportionment that is out of scope for a standard workflow.

Classify all sales and revenue for the period into standard-rated (16%), zero-rated (exports, Second Schedule goods), and exempt (First Schedule) buckets. For export services, confirm the foreign-client contract and FX payment evidence required to sustain zero-rating. Flag any government-client invoices where withholding VAT (WHT-VAT) at 6% will be deducted by the payer.

Review all business expenditure for the period and identify creditable input tax. Input tax credit is only claimable where the supplier is KRA VAT-registered and has issued a compliant ETR receipt or iTax e-invoice. Identify any international SaaS or digital-service payments requiring reverse-charge self-assessment at 16%. Exclude bank charges, M-Pesa fees, NHIF/NSSF payments, and KRA tax payments — all are non-creditable.

Compile the VAT-3 working paper. Compute total output tax (Section D), total input tax (Section G), net VAT payable or excess credit (Section H/I). Offset any WHT-VAT certificates. Carry forward any prior-period excess credit. Highlight red-flag items: single transactions above KES 500,000, more than four conservative defaults applied, or net VAT position above KES 200,000.

Log in to iTax (itax.kra.go.ke) and file the VAT-3 return for the period. Enter figures from the working paper into the online return form. If net VAT is payable, generate a KRA payment slip (E-slip) and settle via mobile banking, bank transfer, or M-Pesa paybill 572572 before the 20th of the month following the tax period. Retain the iTax filing acknowledgement and payment receipt.