The Kenya Revenue Authority (KRA) has officially transitioned Value Added Tax (VAT) filing to a fully digital process. Taxpayers can now submit pre-filled VAT returns online through the iTax platform, marking a significant move away from the traditional manual system.
Previously, taxpayers were required to manually complete VAT return booklets, attach physical receipts, and visit tax offices for stamping and verification. KRA highlighted this shift in a statement on its X account on July 28, 2026, noting the convenience offered by the new system.
Under the updated process, VAT returns are automatically pre-filled using data collected via the electronic Tax Invoice Management System (eTIMS) and Invoice Control Management System (ICMS). Taxpayers can review and confirm the accuracy of this information before submitting returns online.
Digital Systems Enhance Tax Compliance
The move to digital filing follows recent technical challenges, including two service outages of the eTIMS portal that disrupted electronic invoicing for many businesses. Despite these interruptions, KRA reassured taxpayers that alternative channels such as the eCitizen platform, the *222# USSD service, and the eTIMS Lite app remain available to support tax compliance.
eTIMS plays a central role in Kenya’s tax framework by enabling real-time generation, transmission, and storage of electronic tax invoices. This system allows KRA to validate transactions, auto-populate VAT returns, and cross-check sellers’ and buyers’ records, thereby improving accuracy and reducing errors.
KRA continues to encourage businesses to adopt digital tax solutions, citing benefits such as minimized paperwork, enhanced efficiency, and streamlined compliance processes. The introduction of pre-filled VAT returns is expected to simplify monthly filing and save taxpayers’ time.
