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How to Register for VAT in Kenya: Step-by-Step Guide

 

How to Register for VAT in Kenya: Step-by-Step Guide

Value Added Tax (VAT) is a key part of Kenya’s tax system. If your business meets the registration threshold or operates in sectors where VAT is mandatory, it’s essential to comply. In this guide, we’ll walk you through how to register for VAT in Kenya—step by step—while avoiding common pitfalls.

Who Needs to Register for VAT?

You are required to register for VAT if:

  • Your annual revenue exceeds KES 5 million, or

  • You voluntarily choose to register (even below the threshold), or

  • You’re in a sector where VAT is mandatory (e.g., imports, consultancy, manufacturing)

Step-by-Step Guide to VAT Registration in Kenya

1. Have a Valid KRA PIN

You must first have a registered KRA PIN (Personal Identification Number) under iTax.

  • If you are  a company, please make sure your business is correctly registered with the Business Registration Service (BRS) and linked to the KRA system.

2. Log in to the iTax Portal

Go to https://itax.kra.go.ke

  • Enter your KRA PIN

  • Use your password or reset if forgotten

  • Complete the security CAPTCHA

3. Select “Registration” → “Amend PIN Details”

On the menu bar:

  • Go to “Registration”

  • Choose “Amend PIN Details” – this allows you to request VAT obligation

4. Add VAT Tax Obligation

In the amendment form:

  • Under “Obligation Details”, tick “VAT”

  • Choose your effective date (either current or future)

You’ll also need to:

  • Select your VAT filing frequency (usually monthly)

  • Attach any required documents (e.g., certificate of incorporation, lease agreements, etc.)

5. Submit and Wait for Approval

  • Submit the application

  • KRA may request further clarification or documents

  • If approved, your PIN certificate will now include VAT as one of your obligations

What You Need to Attach During Vat Registration (For Businesses):

  • Certificate of Incorporation

  • Business permit or lease agreement

  • Directors’ PINs and IDs

  • Bank details (some applications may request bank account verification)

⚠️ Common Mistakes to Avoid

  • Registering for VAT when not yet required (can complicate cash flow)

  • Failing to collect or remit VAT after registration

  • Not keeping clear records of input and output VAT

  • Using incorrect effective dates

💡 Our Tip: Seek Professional Guidance

VAT registration may seem simple, but mistakes can lead to penalties, audits, or costly compliance issues. Especially when dealing with multiple directors, foreign investors, or specialized sectors, proper guidance can save you time and money.

👨‍💼 Need Help Registering for VAT?

We’re experts in tax consulting and compliance. From VAT registration to monthly filing and audit preparation, we help you stay compliant and in control.

📍 Location: Biashara Plaza, Moi Avenue, Nairobi
📧 Email: info@blueoceanoutsource.co.ke
📞 Call/WhatsApp: +254 729 842 847

Talk to us today.