The auto populated VAT return is a simplified VAT filing process where the Kenya Revenue Authority (KRA) pre-fills VAT returns with tax information from iTax, TIMS, eTIMS and the customs business systems.

VAT-registered taxpayers are required to:

• Issue/demand to be issued with electronic tax invoices.
• Transmit invoice details to KRA through TIMS/eTIMS as prescribed by law.
• Verify and confirm the accuracy of their auto populated VAT returns.

Yes, all VAT-registered taxpayers must continue using TIMS/eTIMS to issue electronic tax invoices and transmit details to KRA as required by law.

Both TIMS/ETIMS compliant invoices have a QR Code which can be verified by a QR reader. You can also access the invoice checker on the iTax page

The invoice checker has additional fields to include the buyer details which are crucial in ascertaining if the correct invoice details were transmitted and allow corrective action to be taken early enough within the tax period.

For sales issued through eTIMS the issue will mostly arise from transmission challenges. To ensure seamless and timely transmission of invoices, always keep your device consistently connected to the internet.

For sales through TIMS where the device is connected to the internet yet it is still not transmitting invoices then contact your TIMS Device supplier for assistance to resolve the configuration issue.

The return allows a taxpayer to increase the sales value upwards for any missing sales in the return arising from sales issued outside TIMS/eTIMs or sales not transmitted by the time of filing the VAT return etc.

No. Sales in the VAT return are prepopulated based on the invoice date and not the transmission date. Hence, a taxpayer needs to declare all their total sales in the VAT return whether transmitted or not by the date of filing the return.

The sales including the respective credit notes where applicable to customers not registered for VAT will be captured under CSV for invoices without PIN and Non VAT PINs.

Yes, as long as the invoice was transmitted to KRA and the customer PIN is VAT Registered.
All sales to non-VAT registered customers or customers who did not provide their PIN to the seller should be declared under lump sum sales field in the respective sales sheets

You cannot reduce the prepopulated sales value in the return as relates to what was transmitted through your TIMS/eTIMS devices. However, you can add/adjust sales values upwards where applicable.

You can declare the sales to VAT registered customers up to a maximum of 75,000 rows in sheet B. In case there are more than 75,000 invoices, total taxable value for the excess invoices can be added to the lump sum sales value.

This could be a configuration issue between TIMS device and the trader invoicing system where multiple invoices are signed off for the same trader invoice number.

Please contact the TIMS device supplier for proper configuration of the TIMS device to resolve the issue. Sometimes the taxpayer could have issued multiple invoices for the same transaction. It is possible both in TIMS and eTIMS to issue a credit note to reverse any erroneous invoice

Please consult your TIMS device supplier to ensure proper classification of zero-rated and exempt supplies product codes on the TIMS device.

Please liaise with your TIMS device supplier to ensure the correct configuration of foreign currency exchange rates in the ERP/Invoicing systems. You are allowed to adjust the sales upwards to arrive at the correct taxable value.

For both sales to VAT and Non VAT registered customers, credit notes form part of the respective CSVs. For credit notes to VAT registered customers, if they are declared on a line item, the corresponding relevant invoice must have been declared on a line item in the respective return as per the relevant invoice date

The sales values are updated every day through an incremental batch process as and when more sales invoices for the tax period are transmitted. Taxpayers are advised to download the most recent return when filing the VAT return.

This is probably caused by the failure of the seller to transmit the TIMS/eTIMS invoices or transmitted the invoices without buyer details. Also the missing purchases could be non VAT.
To resolve the issue kindly engage the seller to transmit the missing invoices or advise the seller to engage their TIMS Device Supplier to resolve the configuration issue between their TIMS Device and ERP which caused the transmission of invoices without buyer PIN.

Input VAT claims will only be allowed if they:

• Originate from invoices transmitted through TIMS/eTIMS.
• Comply with the VAT Act and associated regulations.
• Input VAT claims against valid customs import declarations
• Valid input from Non Resident Digital Suppliers

Only valid TIMS/ eTIMS invoices transmitted to KRA can be claimed in the VAT return under purchases.

Only valid TIMS/ETIMS invoices transmitted to KRA with the buyer PIN can be claimed in the VAT return.

You cannot claim VAT from invoices that are not TIMS/eTIMS compliant. Ensure all purchase invoices are TIMS/eTIMS generated and the supplier has transmitted to KRA for purposes of claiming input tax.

Input VAT for customs import declarations that are validated through custom business systems and the import entry status is settled or removed will be allowable for claiming in the VAT return.
For payments paid through manual eslips or other unique scenarios, kindly liaise with customs or your respective tax service office for them to validated and availed at a subsequent tax period.
Always ensure when dealing with your clearing agents that the entries are updated to the status of removed or settled. The system still allows claiming of an import entry that has met the required conditions even if it’s not in the section F ‘Imports CSV’

Yes, as long as the Non Resident Digital Supplier has declared your customer PIN on a line item under sheet B and filed the return. Taxpayers are advised to notify the non-resident digital suppliers that they intend to claim the input so as they are declared on a line item.

Yes. You can claim the late transmitted purchases in subsequent periods within 6 months from the invoice date.

Yes. The purchase can be claimed in the income Tax return. However, for VAT claims kindly ensure you deal with the VAT registered suppliers who issue TIMS/eTIMs compliant invoices and transmit them to KRA

The return allows taxpayers to disallow/remove any erroneous purchases including prohibited input tax which may be part of the purchase CSVs.It is only mandatory to claim credit notes under purchases

The purchases values are updated every day as and when more invoices for the tax period are transmitted.

When you have missing purchases in the CSV and notify your supplier and they transmit the invoices, the CSV for the next day when downloaded will have been updated with these purchases.
Taxpayers are advised to download the most recent return when filing the VAT return to be able to access all the purchases to date.

The seller should issue a credit note to reverse the sale, then reissue the invoice with the correct PIN to be claimed in the subsequent month by the buyer

The seller should liaise with TIMS device supplier to resolve the configuration issue between TIMS device and the ERP system and then reissue and transmit the correct invoice with the buyer details.

Please contact the seller to issue a full credit note to reverse the sale, then issue a new invoice with correct PIN of buyer. It is only mandatory to issue the buyer PIN to the seller if the purchase is for business purposes and you intend to claim either in the Income Tax or VAT return.

This means the supplier PIN is in the VAT Special Table hence you can’t claim input tax from them. You may advise the supplier to resolve their non - compliance issues and claim input in a subsequent period once they have removed from the special table.

This is to resolve issue of truncation of leading invoice numbers which are zeros mostly for TIMS invoices. On importing the CSV, the pipe disappears and only the actual invoice number remains.

The return only provides CSVs for sales and purchases for the current tax period. However, you can still claim claim input tax for prior periods as long as the invoice was issued and transmitted through TIMS/ETIMS, VAT was charged ,PIN of the buyer was captured and invoice has not been claimed in a previous period.

The return does not apportion or disallow input tax automatically. Taxpayer can choose to disallow the purchase invoices by claiming a lower amount or disallowing the full amount by not claiming the invoice or use the apportionment formula fields in the VAT return tax due sheet.

The new system reduces the manual effort in filing VAT returns by pre-filling information, ensuring compliance, and minimizing errors