How to Claim VAT Refund In Kenya

To claim VAT refund in Kenya, you must submit an online application through the KRA iTax portal. Refund claims typically arise from overpaid tax, excess credits from zero-rated supplies, or bad debts. 

Step-by-Step Application Process

1. Log in to iTax: Enter your KRA PIN, password, and complete the security arithmetic.
2. Access Refunds Menu: Navigate to the Refunds tab on the dashboard and select the appropriate tax obligation (VAT).
3. Confirm Details: Verify your taxpayer information and click “Next”.
4. Enter Bank Details: Provide your accurate bank account information where the refund should be deposited.
5. Fill Claim Details:

1. • Select the Refund Type (e.g., Overpayment, Zero-rated supplies, Bad debts).
   • Enter the Claim Reason and a detailed description.
   • Specify the Amount being claimed.

1. Upload Documents: Attach mandatory supporting documents (see below) and click “Submit”.
2. Download Slip: Save the generated acknowledgement slip for tracking purposes. 

Required Supporting Documents

• Proof of Overpayment: Relevant bank statements or payment receipts.
• Tax Invoices: Valid electronic tax invoices (eTIMS/TIMS) for business purchases.
• Withholding Certificates: For credits arising from the Withholding VAT system.
• Customs Documents: Import declaration and customs entry forms for imports.
• Credit/Debit Notes: Where applicable for returned goods or value reductions. 

Critical Deadlines and Rules

• General Claims: Must be lodged within 12 months from the date the tax became due and payable.
• Bad Debts: Can be claimed after 3 years but before 10 years from the date of supply (or if the buyer is legally insolvent).
• Withholding VAT: Applications for credits arising after July 2019 must be made within 24 months.
• Processing Time: KRA typically issues a decision within 90 to 120 days. If approved, funds are usually disbursed within two years of the application date. 

Note: Ensure you have a valid debt status report before applying, as outstanding tax debts may lead to the refund being used as an offset instead of a cash payout