Guide on Filing Auto-Populated VAT Returns on iTax

Guide on Filing Auto Populated VAT Returns

Value Added Tax (VAT) is a crucial revenue stream for the Kenyan government, levied on the supply of goods and services. With the shift towards automation and improved tax compliance, the Kenya Revenue Authority (KRA) has introduced auto-populated VAT returns on the iTax platform, simplifying the submission process for registered taxpayers.

If you’re a business owner, accountant, or tax consultant in Kenya, understanding guide on filing auto populated VAT returns is essential for maintaining compliance, avoiding penalties, and streamlining your tax operations.

What Is an Auto-Populated VAT Return?

As of January 2024, the KRA began auto-filling VAT returns using data captured from:

eTIMS (Electronic Tax Invoice Management System)

TIMS (Tax Invoice Management System)

Customs Declarations

This means your monthly VAT return is automatically pre-filled with:

Your sales data
Invoices issued
PINs of your suppliers or clients
Input VAT and Output VAT summaries

However, since this is a self-assessment return, you must confirm, adjust, or reject data where necessary before submitting.

Who Must File VAT Returns?

VAT filing is mandatory for:

Businesses with annual taxable turnover above KSh 5 million
Voluntary VAT registrants
Importers, wholesalers, retailers, service providers, and manufacturers

Even if you have no transactions in a given period, you’re required to file a NIL VAT return via iTax.

Key Requirements Before Filing

Ensure you have:

Your KRA PIN and iTax login
Access to auto-populated VAT return zip file
eTIMS-compliant invoices
Any adjustments like Credit/Debit Notes, Withholding VAT, or Exempt Supplies
Internet access and updated Excel software

Step-by-Step Guide on Filing Auto Populated VAT Returns

Login to iTax Portal

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

Enter your KRA PIN and password

Solve the arithmetic security question to log in

Navigate to File Returns

Click Returns > File Return

Select Tax Obligation: VAT (Value Added Tax)

Download the Auto-Populated VAT Return

Click Download Auto-Populated VAT Return

A zip file containing the VAT Excel template and CSVs will download

Open and Review the Excel Template

The return will include pre-filled details such as:

Business Information (PIN, return period, VAT obligation)

Sales (Standard-rated, Zero-rated, Exempt)

Purchases (Local, Imports, Digital)

Credit/Refund claims, Withholding VAT (WHVAT)

Adjustment vouchers

Important: You can edit sales amounts upwards or adjust disallowed input tax under Section F, H, or J.

Merge and Import CSV Files (Where Applicable)

CSV files may include:

SEC_B_WITH_VAT_PIN1 (Sales with VAT)

SEC_F_WITH_VAT_PIN1 (Purchases)

SEC_H_WITH_VAT_PIN1 (Zero-rated purchases)

Merge CSVs if you have both local and imported items

Avoid uploading files labeled “WITHOUT_PIN”

Disallow Input Tax for Exempt Supplies

Enter disallowed input tax in Row 16 or 17 of the Tax Due Sheet

If your business has both taxable and exempt supplies, apportion common input tax accordingly

Validate and Upload the Return

Use the ‘Validate’ button in Excel to generate the zip file

Go back to iTax, upload the validated zip

Tick to accept terms and click Submit

Download the Acknowledgment Receipt

Go to “Consult & Reprint Acknowledgement Receipts”

Select your Return Number and Tax Obligation

Download your receipt as proof of filing

Make Payment (If Applicable)

If in a payable position, generate a Payment Registration Number (PRN)

Pay via:

M-Pesa (Paybill 222222, Account: PRN)

Bank Transfer

Card or RTGS via the iTax portal

Penalties for Late Filing or Payment

Late Filing Penalty: KSh 10,000 or 5% of VAT due (whichever is higher)

Late Payment Penalty: 5% + 2% interest per month

Failure to file NIL returns also attracts penalties

Filing Auto Population VAT Returns Smooth Tips

Keep proper electronic and hard copy records for 5 years

Issue eTIMS-compliant invoices

Reconcile your VAT with actual business activity

Regularly check auto-populated values for accuracy

Tips for Filing Auto Populated VAT Returns

Keep proper electronic and hard copy records for 5 years

Issue eTIMS-compliant invoices

Reconcile your VAT with actual business activity

Regularly check auto-populated values for accuracy

Why Choose Dennykins & Associates?

As one of the best KRA tax agents and consultants in Kenya, Dennykins & Associates offers:

Expert handling filing auto populated VAT returns

Support with KRA objections, audits, and penalty waivers

Personalized advisory for compliance, tax planning, and VAT refunds

Seamless guidance on using eTIMS and iTax tools

Don’t risk penalties or non-compliance. Trust professionals who understand both technology and tax law.

If you’re unsure on filing auto populated VAT returns, consult a licensed tax agent like Dennykins & Associates for professional support and compliance assurance

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Guide on Filing Auto-Populated VAT Returns on iTax