VAT Registration Certificate — Fees and Charges in Kenya

Value Added Tax (VAT) is an indirect tax levied on the supply of taxable goods and services in Kenya. The standard rate is 16% on most taxable supplies, with a 0% rate on zero-rated supplies listed in the Second Schedule of the VAT Act, 2013. Registration is administered by the Kenya Revenue Authority (KRA) through the iTax portal.

Fees and Charges

Item	Fee (KES)
VAT registration	Free
Annual renewal	Not applicable — registration is ongoing
Late registration penalty	5% of tax due or KES 10,000 (whichever is higher)
Late return filing penalty	5% of tax due or KES 10,000 (whichever is higher)
Late payment interest	1% per month on unpaid tax

Registration Thresholds

Category	Threshold
Mandatory registration	Taxable supplies of KES 5 million or more per year
Voluntary registration	Available for persons below the KES 5 million threshold
Non-resident digital service providers	Mandatory regardless of threshold

Non-resident persons supplying services into Kenya via the internet, digital marketplaces, or electronic networks must register for VAT under a simplified non-resident registration system, regardless of turnover level.

Ongoing Obligations

VAT-registered persons must file monthly returns and remit tax by the 20th day of the following month through the iTax portal. They are also required to integrate with KRA's eTIMS (Electronic Tax Invoice Management System) and issue electronic tax invoices for all taxable supplies. Persons whose taxable turnover falls below KES 5 million in a year may apply for voluntary de-registration. Administered by the Kenya Revenue Authority (KRA) under the VAT Act, 2013, Laws of Kenya.

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