VAT returns and payments must be filed by the 20th day of the following month. Late filing attracts penalties and interest.

Kenya VAT Calculator 2025 – Add or Remove 16% VAT Instantly

Q: What Are the Current VAT Rates in Kenya?

The standard VAT rate in Kenya is 16%. Zero-rated items are taxed at 0% (such as exports and essential goods), while exempt items like education, healthcare, and residential rent are not taxed. The 8% VAT on petroleum products was abolished in July 2023.

Q: Who Should Register and Charge VAT?

Businesses with an annual turnover of Ksh 5 million or more must register for VAT. Voluntary registration is possible for smaller businesses wishing to claim input VAT. Registered businesses must issue electronic tax invoices and file monthly VAT returns.

Q: How Do I Register for VAT in Kenya?

Registration is done through the KRA iTax portal using a KRA PIN. After applying for VAT obligation and approval, businesses must charge VAT, issue KRA-compliant invoices, and file monthly VAT returns including nil returns.

Q: How Do I Use the VAT Calculator?

Enter an amount, choose to add or remove VAT, select the VAT type (16%, 0%, or exempt), and click Calculate for instant results. The tool is ideal for quotations and checks but does not replace official KRA filing.

Use our free Kenya VAT Calculator 2025 to quickly add or remove the standard 16% Value Added Tax (VAT) from any amount. Whether you’re a business owner, accountant, freelancer, or shopper, this easy-to-use tool gives instant and accurate results. Perfect for calculating VAT-inclusive or VAT-exclusive prices in Kenya and for preparing KRA-compliant tax invoices.

Amount (Ksh): VAT Mode: VAT Type:

How to Calculate VAT in Kenya (2025 Guide)

In Kenya, the current Value Added Tax (VAT) regime is governed by the VAT Act, 2013 (as amended). The standard VAT rate is 16%, which applies to most taxable goods and services. There is also a 0% zero-rated VAT for specific supplies such as exports and essential goods, and exempt supplies like education, healthcare, and residential rent where VAT is not charged. As of July 2023, the 8% VAT on petroleum products was abolished under the Finance Act, 2023.

Standard VAT Rate: 16% (applies to most goods and services)
Zero-rated items: exports, certain foodstuffs, and essential supplies
Exempt items: education, healthcare, financial services, residential rent
To add VAT: multiply the net price by the VAT rate, then add it to the net amount
To remove VAT: divide the gross price by (1 + VAT rate) to get the net value

This calculator helps you understand VAT breakdowns instantly and is ideal for business owners, freelancers, importers, and consumers in Kenya.

Everything You Need to Know About VAT in Kenya (2025 Guide)

Value Added Tax (VAT) is one of the most important taxes in Kenya, directly affecting the price of everyday goods and services. Every consumer pays VAT whenever they make a purchase, while businesses are responsible for charging and remitting it to the Kenya Revenue Authority (KRA). In 2025, VAT remains a key revenue source for the government and a major cost consideration for individuals, freelancers, and companies alike. This guide explains the current VAT rates, how VAT is applied, and what businesses and consumers need to know.

What Is VAT and How Does It Work?

VAT is a consumption tax applied whenever value is added along the supply chain. It operates under the Input Tax vs Output Tax system:

Input Tax: VAT paid on purchases or imports for business use.
Output Tax: VAT charged on sales of taxable goods and services.
Tax Payable: Output Tax – Input Tax.

Example: If you purchase goods worth Ksh 10,000 + 16% VAT (Ksh 1,600), and sell them later, you can offset the input VAT you paid against the VAT you collect on sales.

What Are the Current VAT Rates in Kenya?

16% (Standard Rate): Applies to most taxable goods and services.
0% (Zero-rated): Exports and specific essential supplies (e.g. some foodstuffs). Input VAT is claimable.
Exempt: Education, healthcare, residential rent, financial services, and others. Input VAT cannot be claimed.

Note: The 8% VAT on petroleum products was abolished in July 2023 under the Finance Act, 2023. Our VAT Calculator supports 16%, 0%, and exempt classifications.

Who Should Register and Charge VAT?

Any business with an annual taxable turnover of Ksh 5 million or more must register for VAT. Voluntary registration is allowed for smaller businesses if they wish to claim input VAT.

Once registered, businesses must:

Install and use an Electronic Tax Register (ETR) integrated with KRA systems.
Issue Electronic Tax Invoices (ETI) for every transaction.
File monthly VAT returns and remit tax by the 20th of the following month.

How Do I Register for VAT in Kenya?

VAT registration is done online via the KRA iTax portal. Log in with your KRA PIN, apply for the VAT obligation, and once approved, you’ll receive confirmation of your VAT status. After registration:

You must charge VAT on taxable supplies.
You must issue KRA-compliant electronic invoices.
You must file VAT returns monthly, even if there are no sales (nil returns).

When Is VAT Due?

VAT returns and payments are due by the 20th day of the following month. Late filing attracts penalties and interest, so it’s important to file on time via iTax.

How Do I Use the VAT Calculator?

Enter the amount (net or gross).
Select whether to add or remove VAT.
Choose the VAT type: 16%, 0%, or exempt.
Click Calculate for instant results.

This tool is ideal for quotations and quick checks. For official filing and reporting, use the KRA iTax system which applies the full input-output VAT rules.

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