This document is the updated version of the Kenya Value Added Tax Act, 2013 (No. 35 of 2013), which incorporates amendments from the Finance Act 2018 and the Tax Laws (Amendment) Act 2018. It was prepared by Viva Africa Consulting LLP and assented to on August 14, 2013, with commencement on September 2, 2013.

Key provisions of the Act include:

• Charge to Tax (Part III): Value Added Tax (VAT) is charged on a taxable supply made by a registered person in Kenya, the importation of taxable goods, and the supply of imported taxable services.

  • The general tax rate is sixteen percent of the taxable value.

  • Zero-rated supplies are taxed at zero percent.

  • Goods listed in section B of Part I of the First Schedule are taxed at eight percent.

• Rates of Tax: The Cabinet Secretary may amend the general tax rate by increasing or decreasing it by up to twenty-five percent of the rate specified in section 5(2)(b).

• Registration (Part IX): A person must register if their taxable supplies are or are expected to be five million shillings or more in any twelve-month period. Voluntary registration is also permitted if the person meets certain conditions.

• Time of Supply (Part IV): The time of supply is generally the earliest of the date goods are delivered or services performed, the date a certificate is issued by a consultant, the date the invoice is issued, or the date payment is received.

• Deduction of Input Tax (Part VI): Input tax may be deducted against output tax if the supply or importation was acquired to make taxable supplies, and the registered person holds the required documentation.

• Returns (Part XI): Every registered person must submit a return not later than the twentieth day after the end of each tax period. Failure to submit a return incurs a penalty.

• Refunds (Part VIII): Refunds are allowed for tax paid in error, provided the claim is lodged within twelve months from the date the tax became due. Refunds for tax on bad debts are also provided for under specific conditions.