Value Added Tax Act

Section 1. Short title Section This Act may be cited as the Value Added Tax Act.

Section 2. Interpretation Section 2(1) In this Act, unless the context otherwise requires— "aircraft" includes every description of conveyance for the transport by air of human beings or goods ("tangible movable and immovable property and includes electrical or thermal energy, gas and water, but does not include money;") ; "assessment" means— (a) a self-assessment return submitted under section 45 ; (b) an assessment made by the Commissioner ("the Commissioner-General appointed under the Kenya Revenue Authority Act (), or, with respect to powers or functions that have been delegated under that Act to another Commissioner, that other Commissioner;") under section 45 ; or (c) an amended assessment under section 46 ; "Authority" means the Kenya Revenue Authority established by the Kenya Revenue Authority Act ( Cap. 469 ); "authorised officer" , in relation to any provision of this Act, means any officer appointed under section 3 who has been authorised by the Commissioner ("the Commissioner-General appointed under the Kenya Revenue Authority Act (), or, with respect to powers or functions that have been delegated under that Act to another Commissioner, that other Commissioner;") to pe...

Section 3.[Deleted byAct No. 29 of 2015, 2nd Sch.]

Section 4.[Deleted byAct No. 29 of 2015, 2nd Sch.]

Section 5. Charge totax Section 5(1)(a) a taxable supply ("a supply, other than an exempt supply, made in Kenya by a person in the course or furtherance of a business carried on by the person, including a supply made in connection with the commencement or termination of a business;") made by a registered person ("any person registered under section, but does not include an export processing zone enterprise or a special economic zone;") in Kenya; Section 5(1)(b) the importation ("to bring or cause to be brought into Kenya from a foreign country, a special economic zone enterprise or from an export processing zone;") of taxable goods ("tangible movable and immovable property and includes electrical or thermal energy, gas and water, but does not include money;") ; and Section 5(1)(c) a supply ("a supply of goods or services;") of imported taxable services ("anything that is not goods or money;") . Section 5(2)(a) in the case of a zero-rated supply , zero per cent; or Section 5(2)(aa) deleted byAct No. 4 of 2023, s. 30(a); Section 5(2)(ab) deleted byAct No. 4 of 2023, s. 30(b); Section 5(2)(b) in any other case, sixteen per cent of the taxable value ("the value determined in accordance...

Section 6.Cabinet Secretarymay amend the rate oftax Section 6(1) The Cabinet Secretary ("the Cabinet Secretary responsible for matters relating to finance;") may, by order published in the Gazette , amend the rate of tax ("the value added tax chargeable under this Act;") by increasing or decreasing any of the rates of tax ("the value added tax chargeable under this Act;") by an amount not exceeding twenty-five per cent of the rate specified in section 5(2)(b) . Section 6(2) Every order made under subsection (1) shall be laid before the National Assembly without unreasonable delay, and shall cease to have effect if a resolution of the National Assembly disapproving the order is passed within twenty days of the day on which the National Assembly next sits after the order is laid, but without prejudice to anything previously done thereunder.

Section 7. Zero rating Section 7(1) Where a registered person ("any person registered under section, but does not include an export processing zone enterprise or a special economic zone;") supplies goods ("tangible movable and immovable property and includes electrical or thermal energy, gas and water, but does not include money;") or services ("anything that is not goods or money;") and the supply ("a supply of goods or services;") is zero rated, no tax ("the value added tax chargeable under this Act;") shall be charged on the supply ("a supply of goods or services;") , but it shall, in all other respects, be treated as a taxable supply ("a supply, other than an exempt supply, made in Kenya by a person in the course or furtherance of a business carried on by the person, including a supply made in connection with the commencement or termination of a business;") . Section 7(2) A supply ("a supply of goods or services;") or importation ("to bring or cause to be brought into Kenya from a foreign country, a special economic zone enterprise or from an export processing zone;") of goods ("tangible movable and immovable property and includes electrical or thermal energy, gas and water, bu...

Section 8. Place ofsupply of services Section 8(1) A supply of services is made in Kenya if the place of business of the supplier from which the services ("anything that is not goods or money;") are supplied is in Kenya. Section 8(2)(a) the services ("anything that is not goods or money;") are physically performed in Kenya by a person ("an individual,company, partnership, association of persons, trust, estate, the Government, a foreign government, or a political subdivision of the Government or foreign government;") who is in Kenya at the time of supply ("a supply of goods or services;") ; Section 8(2)(b) the services ("anything that is not goods or money;") are directly related to immovable property in Kenya; Section 8(2)(c) deleted byAct No. 9 of 2025, s. 33(a)(ii) ; Section 8(2)(d) the services ("anything that is not goods or money;") are electronic services ("anything that is not goods or money;") delivered to a person ("an individual,company, partnership, association of persons, trust, estate, the Government, a foreign government, or a political subdivision of the Government or foreign government;") in Kenya at the time of supply ("a supply of goods or services;") ; or Section...

Section 9.[Deleted byAct No. 29 of 2015, 2nd Sch.]

Section 10. Treatment of importedservices Section 10(1) If a supply ("a supply of goods or services;") of imported taxable services ("anything that is not goods or money;") is made to any person ("an individual,company, partnership, association of persons, trust, estate, the Government, a foreign government, or a political subdivision of the Government or foreign government;") , the person ("an individual,company, partnership, association of persons, trust, estate, the Government, a foreign government, or a political subdivision of the Government or foreign government;") shall be deemed to have made a taxable supply ("a supply, other than an exempt supply, made in Kenya by a person in the course or furtherance of a business carried on by the person, including a supply made in connection with the commencement or termination of a business;") to himself. Section 10(1A) The provisions of subsection (1) shall not apply to taxable supplies made under section 5(7) . Section 10(2)(a) a credit for part of the amount of input tax payable, the value of the taxable supply ("a supply, other than an exempt supply, made in Kenya by a person in the course or furtherance of a business carried on by...

Section 11. Place ofsupply of goods Section the goods ("tangible movable and immovable property and includes electrical or thermal energy, gas and water, but does not include money;") are delivered or made available in Kenya by the supplier;

Section 12. Time ofsupply of goodsandservices Section 12(1)(a) the date on which the goods ("tangible movable and immovable property and includes electrical or thermal energy, gas and water, but does not include money;") are delivered or services ("anything that is not goods or money;") performed; Section 12(1)(b) the date a certificate is issued by an architect, surveyor or any other person ("an individual,company, partnership, association of persons, trust, estate, the Government, a foreign government, or a political subdivision of the Government or foreign government;") acting as a consultant in a supervisory capacity; Section 12(1)(c) the date on which the invoice for the supply ("a supply of goods or services;") is issued; or Section 12(1)(d) the date on which payment for the supply ("a supply of goods or services;") is received, in whole or in part. Section 12(1A) Subject to subsection (1) , in the case of the national carrier, the time of supply ("a supply of goods or services;") shall be the date on which the goods ("tangible movable and immovable property and includes electrical or thermal energy, gas and water, but does not include money;") are delivered or services ("any...

Section 34. Application for registration Section 34(1)(a) has made taxable supplies or expects to make taxable supplies, the value of which is five million shillings or more in any period of twelve months; or Section 34(1)(b) is about to commence making taxable supplies the value of which is reasonably expected to exceed five million shillings in any period of twelve months, Section 34(2)(a) a taxable supply ("a supply, other than an exempt supply, made in Kenya by a person in the course or furtherance of a business carried on by the person, including a supply made in connection with the commencement or termination of a business;") of a capital asset of the person ("an individual,company, partnership, association of persons, trust, estate, the Government, a foreign government, or a political subdivision of the Government or foreign government;") ; and Section 34(2)(b) a taxable supply ("a supply, other than an exempt supply, made in Kenya by a person in the course or furtherance of a business carried on by the person, including a supply made in connection with the commencement or termination of a business;") made solely as a consequence of the person ("an individual,company, partne...

Section 35. Registeredpersonto display certificate Section 35(1)(a) the tax registration certificate ("a tax registration certificate issued by the Commissioner under section;") at the principal place at which the person ("an individual,company, partnership, association of persons, trust, estate, the Government, a foreign government, or a political subdivision of the Government or foreign government;") carries on business ; and Section 35(1)(b) a copy of the certificate at every other place at which the person ("an individual,company, partnership, association of persons, trust, estate, the Government, a foreign government, or a political subdivision of the Government or foreign government;") carries on business . Section 35(2) A registered person ("any person registered under section, but does not include an export processing zone enterprise or a special economic zone;") shall notify the Commissioner ("the Commissioner-General appointed under the Kenya Revenue Authority Act (), or, with respect to powers or functions that have been delegated under that Act to another Commissioner, that other Commissioner;") , in writing, of any change in the name (including the business name), addr...

Section 36. Cancellation of registration Section 36(1) A registered person ("any person registered under section, but does not include an export processing zone enterprise or a special economic zone;") who ceases to make taxable supplies shall apply in writing to the Commissioner ("the Commissioner-General appointed under the Kenya Revenue Authority Act (), or, with respect to powers or functions that have been delegated under that Act to another Commissioner, that other Commissioner;") , for the cancellation of the person ("an individual,company, partnership, association of persons, trust, estate, the Government, a foreign government, or a political subdivision of the Government or foreign government;") ’s registration, within thirty days of the date on which the person ("an individual,company, partnership, association of persons, trust, estate, the Government, a foreign government, or a political subdivision of the Government or foreign government;") ceases to make taxable supplies. Section 36(2) A registered person ("any person registered under section, but does not include an export processing zone enterprise or a special economic zone;") who continues to make taxable supplies...

Section 37. Offences relating to registration Section fails to apply for registration as required under this Act;

Section 13. Taxable value ofsupply Section 13(1)(a) the consideration for the supply ("a supply of goods or services;") ; or Section 13(1)(b) if the supplier and recipient are related, the open market value of the supply ("a supply of goods or services;") . Section 13(2) Deleted byAct No. 10 of 2018, s. 14. Section 13(3)(a) the amount in money paid or payable, directly or indirectly, by any person ("an individual,company, partnership, association of persons, trust, estate, the Government, a foreign government, or a political subdivision of the Government or foreign government;") , for the supply ("a supply of goods or services;") ; or Section 13(3)(b) the open market value at the time of the supply ("a supply of goods or services;") of an amount in kind paid or payable, directly or indirectly, by any person ("an individual,company, partnership, association of persons, trust, estate, the Government, a foreign government, or a political subdivision of the Government or foreign government;") , for the supply ("a supply of goods or services;") ; and Section 13(3)(c) any taxes, duties, levies, fees, and charges (other than value added tax ("the value added tax chargeable under this Act;...

Section 14. Taxable value of importedgoods Section 14(1)(a) the value of the goods ("tangible movable and immovable property and includes electrical or thermal energy, gas and water, but does not include money;") ascertained for the purpose of customs duty, in accordance with the East African Community Custom Management Act, 2004, whether or not any duty of customs ("import duty, excise duty,export duty, countervailing duty, levy, cess,tax or surtax charged under any law for the time being in force relating to customs or excise;") is payable on the goods ("tangible movable and immovable property and includes electrical or thermal energy, gas and water, but does not include money;") ; Section 14(1)(b) the cost of insurance and freight incurred in bringing the goods ("tangible movable and immovable property and includes electrical or thermal energy, gas and water, but does not include money;") to Kenya; and Section 14(1)(b)(i) the cost of insurance and freight incurred in bringing the goods ("tangible movable and immovable property and includes electrical or thermal energy, gas and water, but does not include money;") to Kenya; and Section 14(1)(b)(ii) the cost of services ("anything...

Section 15. Deemedtaxable supply Section 15(1) An application of taxable supplies by a registered person ("any person registered under section, but does not include an export processing zone enterprise or a special economic zone;") for use outside his business shall be a taxable supply ("a supply, other than an exempt supply, made in Kenya by a person in the course or furtherance of a business carried on by the person, including a supply made in connection with the commencement or termination of a business;") made by the person ("an individual,company, partnership, association of persons, trust, estate, the Government, a foreign government, or a political subdivision of the Government or foreign government;") . Section 15(2) A taxable supply ("a supply, other than an exempt supply, made in Kenya by a person in the course or furtherance of a business carried on by the person, including a supply made in connection with the commencement or termination of a business;") under subsection (1) shall be deemed to have been made by the person ("an individual,company, partnership, association of persons, trust, estate, the Government, a foreign government, or a political subdivision of the Go...

Section 16. Debit and credit note Section 16(1) Where goods ("tangible movable and immovable property and includes electrical or thermal energy, gas and water, but does not include money;") are returned to the registered person ("any person registered under section, but does not include an export processing zone enterprise or a special economic zone;") or, for good and valid reason the registered person ("any person registered under section, but does not include an export processing zone enterprise or a special economic zone;") decides for business reasons, to reduce the value of a supply ("a supply of goods or services;") after the issue of a tax invoice , a credit note shall be issued for the amount of the reduction: Provided that a credit note may be issued- (a) only within six months after the issue of the relevant tax invoice ; or (b) where there is a commercial dispute in court with regard to the price payable, within thirty days after the determination of the matter. Section 16(2) A registered person ("any person registered under section, but does not include an export processing zone enterprise or a special economic zone;") who issues a credit note under this section shall...

Section 17. Credit forinput taxagainstoutput tax Section 17(1) Subject to the provisions of this Act and the regulations ("any subsidiary legislation made under this Act;") , input tax on a taxable supply ("a supply, other than an exempt supply, made in Kenya by a person in the course or furtherance of a business carried on by the person, including a supply made in connection with the commencement or termination of a business;") to, or importation ("to bring or cause to be brought into Kenya from a foreign country, a special economic zone enterprise or from an export processing zone;") made by, a registered person ("any person registered under section, but does not include an export processing zone enterprise or a special economic zone;") may, at the end of the tax period ("one calendar month or such other period as may be prescribed in the regulations;") in which the supply ("a supply of goods or services;") or importation ("to bring or cause to be brought into Kenya from a foreign country, a special economic zone enterprise or from an export processing zone;") occurred, be deducted by the registered person ("any person registered under section, but does not include an export proc...

Section 18. Tax paid prior to registration Section 18(1)(a) on the date exempt supplies ("supplies specified in the First Schedule which are not subject to tax;") made by a registered person ("any person registered under section, but does not include an export processing zone enterprise or a special economic zone;") become taxable, and the person ("an individual,company, partnership, association of persons, trust, estate, the Government, a foreign government, or a political subdivision of the Government or foreign government;") had incurred input tax on such supplies; or Section 18(1)(b) on the date he is registered, a person ("an individual,company, partnership, association of persons, trust, estate, the Government, a foreign government, or a political subdivision of the Government or foreign government;") has incurred tax ("the value added tax chargeable under this Act;") on taxable supplies which are intended for use in making taxable supplies, the person ("an individual,company, partnership, association of persons, trust, estate, the Government, a foreign government, or a political subdivision of the Government or foreign government;") may, within three months from that date, c...

Section 19. Whentaxis due Section 19(1) Tax shall be due and payable at the time of supply ("a supply of goods or services;") . Section 19(2) Notwithstanding the provision of subsection (1) , a person ("an individual,company, partnership, association of persons, trust, estate, the Government, a foreign government, or a political subdivision of the Government or foreign government;") may defer payment of tax ("the value added tax chargeable under this Act;") due to a date not later than the twentieth day of the month succeeding that in which the tax ("the value added tax chargeable under this Act;") became due.

Section 20.[Deleted byAct No. 29 of 2015, 2nd Sch.]

Section 21.[Deleted byAct No. 29 of 2015, 2nd Sch.]

Section 22. Importedgoodssubject to customs control Section 22(1) A person ("an individual,company, partnership, association of persons, trust, estate, the Government, a foreign government, or a political subdivision of the Government or foreign government;") shall not be entitled to obtain delivery of imported taxable goods ("tangible movable and immovable property and includes electrical or thermal energy, gas and water, but does not include money;") from the control of the customs unless the person ("an individual,company, partnership, association of persons, trust, estate, the Government, a foreign government, or a political subdivision of the Government or foreign government;") has paid, in full, the correct amount of tax ("the value added tax chargeable under this Act;") due. Section 22(2) Notwithstanding the provisions of any other written law, any taxable goods ("tangible movable and immovable property and includes electrical or thermal energy, gas and water, but does not include money;") which are imported by air, land or water shall be produced by the importer to a proper officer of customs at the customs station at or nearest to the place of entry, and any importer who f...

Section 23.[Deleted byAct No. 29 of 2015, 2nd Sch.]

Section 24.[Deleted byAct No. 29 of 2015, 2nd Sch.]

Section 25.[Deleted byAct No. 29 of 2015, 2nd Sch.]

Section 26.[Deleted byAct No. 29 of 2015, 2nd Sch.]

Section 27.[Deleted byAct No. 29 of 2015, 2nd Sch.]

Section 28.[Deleted byAct No. 29 of 2015, 2nd Sch.]

Section 29.[Deleted byAct No. 29 of 2015, 2nd Sch.]

Section 25A.[Deleted byAct No. 29 of 2015, 2nd Sch.]

Section 30.[Repealed byAct No. 22 of 2022, s. 28)

Section 31. Refund oftaxon bad debts Section 31(1)(a) has not received any payment from the person ("an individual,company, partnership, association of persons, trust, estate, the Government, a foreign government, or a political subdivision of the Government or foreign government;") liable to pay the tax ("the value added tax chargeable under this Act;") , he may, after a period of two years from the date of the supply ("a supply of goods or services;") ; or Section 31(1)(b) the person ("an individual,company, partnership, association of persons, trust, estate, the Government, a foreign government, or a political subdivision of the Government or foreign government;") to whom the supply ("a supply of goods or services;") was made has been placed under statutory management through the appointment of an administrator, receiver, or liquidator, Section 31(2) Where the tax ("the value added tax chargeable under this Act;") refunded under subsection (1) is subsequently recovered from the recipient of the supply ("a supply of goods or services;") , the registered person ("any person registered under section, but does not include an export processing zone enterprise or a special economic zo...

Section 32.[Deleted byAct No. 29 of 2015, 2nd Sch.]

Section 33.[Repealed byAct No. 38 of 2016, s. 28]

Section 38.[Deleted byAct No. 29 of 2015, 2nd Sch.]

Section 39.[Deleted byAct No. 29 of 2015, 2nd Sch.]

Section 40.[Repealed byAct No. 10 of 2018, s. 16]

Section 41.[Repealed byAct No. 10 of 2018, s. 17]

Section 42. Tax invoice Section 42(1) Subject to subsection (2) , a registered person ("any person registered under section, but does not include an export processing zone enterprise or a special economic zone;") who makes a supply ("a supply of goods or services;") shall, at the time of the supply ("a supply of goods or services;") furnish the purchaser with the tax invoice containing the prescribed details for the supply ("a supply of goods or services;") . Section 42(2)(a) which is not a taxable supply ("a supply, other than an exempt supply, made in Kenya by a person in the course or furtherance of a business carried on by the person, including a supply made in connection with the commencement or termination of a business;") ; or Section 42(2)(b) by a person ("an individual,company, partnership, association of persons, trust, estate, the Government, a foreign government, or a political subdivision of the Government or foreign government;") who is not registered. Section 42(3) Any person ("an individual,company, partnership, association of persons, trust, estate, the Government, a foreign government, or a political subdivision of the Government or foreign government;") who issue...

Section 43. Keeping of records Section 43(1) A person ("an individual,company, partnership, association of persons, trust, estate, the Government, a foreign government, or a political subdivision of the Government or foreign government;") shall, for the purposes of this Act, keep in the course of his business , a full and true written record, whether in electronic form or otherwise, in English or Kiswahili of every transaction he makes and the record shall be kept for a period of five years from the date of the last entry made therein. Section 43(2)(a) copies of all tax ("the value added tax chargeable under this Act;") invoices and simplified tax ("the value added tax chargeable under this Act;") invoices issued in serial number order; Section 43(2)(b) copies of all credit and debit notes issued, in chronological order; Section 43(2)(c) purchase invoices, copies of customs entries, receipts for the payment of customs duty or tax ("the value added tax chargeable under this Act;") , and credit and debit notes received, to be filed chronologically either by date of receipt or under each supplier’s name; Section 43(2)(d) details of the amounts of tax ("the value added tax chargeable u...

Section 44. Submission of returns Section 44(1) Every registered person ("any person registered under section, but does not include an export processing zone enterprise or a special economic zone;") shall submit a return, in the prescribed form and manner, in respect of each tax period ("one calendar month or such other period as may be prescribed in the regulations;") not later than the twentieth day after the end of that period. Section 44(2) Deleted byAct No. 10 of 2018, s. 18. Section 44(3) Deleted byAct No. 10 of 2018, s. 18. Section 44(4) Deleted byAct No. 10 of 2018, s. 18. Section 44(5) Deleted byAct No. 10 of 2018, s. 18.

Section 45.[Deleted byAct No. 29 of 2015, 2nd Sch.]

Section 46.[Deleted byAct No. 29 of 2015, 2nd Sch.]

Section 47.[Deleted byAct No. 29 of 2015, 2nd Sch.]

Section 48.[Deleted byAct No. 29 of 2015, 2nd Sch.]

Section 49.[Deleted byAct No. 29 of 2015, 2nd Sch.]