Step-by-step guide on filing VAT Returns on iTax
Get Free Trial.
Employer SignUp Login

Step-by-step guide on filing VAT Returns on iTax

Thumb
Jan 14th, 2025

Step-by-step guide on filing VAT Returns on iTax

The VAT return filing process through the iTax portal is designed to simplify tax compliance for taxpayers in Kenya. This guide outlines the step-by-step procedure for filing your VAT returns accurately and efficiently.

Under Section 28 of the Tax Procedures Act, 2015, taxpayers are responsible for self-assessment and correct declaration when filing their VAT returns.

Step-by-Step Process

  1. Log into the iTax Portal

  2. Navigate to the Returns Section

    • Select ‘Returns’ from the main menu and click on ‘File Return.’

  3. Choose the Tax Obligation

    • Select ‘Value Added Tax (VAT)’ and proceed to the next step.

  4. Download the VAT Return Template

    • Click the button to download the VAT return form template. Save it to your computer for preparation.

  5. Prepare Your VAT Return

    • Fill in all relevant sections of the VAT return form as applicable to your transactions, including details of your sales and purchases.
    • Ensure you provide accurate and complete information to comply with tax regulations.

  6. Upload Your Completed VAT Return

    • After completing the form, validate and save it.
    • Upload the ZIP file via the iTax portal.
    • Agree to the terms and conditions, and click ‘Submit’ to file your return.

  7. Download the Acknowledgment Receipt

    • Upon successful submission, download the return receipt. A copy will also be sent to your registered email address.
    • You can access the receipt later under the 'Consult and Reprint' option in the useful links menu.

  8. Make Payments (If Applicable)

    • If your VAT return indicates a payable amount, proceed to the payments menu and follow these steps:
      • Register your payment under the VAT tax head.
      • Choose your payment type (e.g., self-assessment) and confirm the liability details.
      • Select your preferred mode of payment—agent banks, mobile money, or debit/credit card.
      • For mobile money, use Paybill number 222222 and your payment registration number (PRN) as the account number.
      • Complete the payment process and retain proof of payment.

Additional Notes

  • Ensure all transaction details are accurate and aligned with your business records.
  • Validate your return before submission to avoid errors.
  • Always adhere to the VAT Act 2013 guidelines for disallowed input tax and apportionment where applicable.

Conclusion

Filing VAT returns through iTax is a straightforward process if you have all the necessary details prepared in advance. By following this guide, taxpayers can comply with VAT regulations efficiently and avoid penalties associated with late or incorrect submissions.

Streamlining your tax compliance is easier when you have the right tools. With FaidiHR's integrated payroll and HR management platform, you can automate statutory deductions, generate compliance reports, and ensure accurate financial records—all in one place.

FaidiHR’s payroll system ensures accurate tax calculations and timely submissions, keeping your business compliant. Click here to get a FREE DEMO and experience stress-free payroll management!