KRA to Autofill Your Data Beginning January: How you can File VAT Return With Auto-Populated Data

The Kenya Income Authority  reminded registered taxpayers on Tuesday that beginning this January 2024, VAT return shall be prefilled with their tax data accessible to KRA with the goal of simplifying the method of submitting and enhancing person expertise.

Based on the tax authority, the target of the auto-populated VAT return is to reinforce VAT compliance and transparency in return declarations. 

“Guarantee VAT claims are validated via TIMS/eTIMS or customs declarations. Digital tax invoices have to be issued, and validity might be checked through QR code or management unit quantity on iTax Portal. Verify the accuracy earlier than submission as it is a self-assessment return.” KRA acknowledged 

Additional, KRA suggested registered VAT taxpayers to substantiate the accuracy of the declaration earlier than submitting the returns for the reason that prefilled return is a self-assessment return as prescribed by the regulation.

Beneath are 17 steps to observe within the means of submitting VAT Return as stipulated by KRA.

First, it’s a must to log into the iTax Portal and choose the choice for ‘File Return’ underneath the Returns menu. 

Secondly, choose the tax obligation ‘Worth Added Tax (VAT)’ after which proceed to the following step of the submitting course of.

You’ll then click on on the button ‘Obtain Auto populated VAT return’ because the third step after which proceed to click on ‘Okay’ to obtain the pre-filled type.

As soon as the return zip file has been downloaded, open it to view the VAT return Excel template and the CSV recordsdata which can be to be imported to the respective sheets of the VAT return because the fourth step.

You may then open the VAT return Excel template because the fifth step. It can have prefilled particulars underneath the fundamental data sheet (PIN, Sort of Return, Entity Sort, Tax Interval), fee particulars and related tax due sheet particulars (credit score b/f, WHVAT credit, Refund Declare Lodged, Credit score Adjustment Voucher, Debit Adjustment Voucher the place relevant).

 It can even have prefilled values for part B Normal Rated Provides, part D Zero Rated Provides and Part E Exempt Provides. The gross sales quantity might be edited upwards to seize further gross sales for the tax interval the place relevant.

Because the sixth step Import the extracted CSV file for Part B for whole gross sales and VAT to clients registered for VAT labelled ‘SEC_B_WITH_VAT_PIN1’

The generic description of products/providers might be edited to seize the precise description the place relevant within the CSV. This ought to be saved and imported. Kindly word that the CSVfile labelled ‘SEC_B_WITHOUT_PIN_AND_NON-VAT_PIN1’ shouldn’t be imported. 

The seventh step is to import the extracted CSV file for Part D1 for whole gross sales and VAT to clients registered for VAT labelled ‘SEC_D1_WITH_VAT_PIN1.’ Kindly word that the CSV file labelled ‘SEC_D1_WITHOUT_PIN_AND_NON-VAT_PIN1’ shouldn’t be imported. The aim of this CSV file is solely to confirm the populated lump sum quantity in sheet D of the VAT return and supply the taxpayer with visibility of the transactions made to clients not registered for VAT. 

Afterwards, import the extracted CSV file for Part E for whole gross sales and VAT to clients registered for VAT labelled ‘SEC_E_WITH_VAT_PIN1 because the eighth step. Kindly word that the CSV file labelled ‘SEC_E_WITHOUT_PIN_AND_NON-VAT_PIN1’ shouldn’t be imported.  

Within the ninth step,  Import the extracted CSV file for Part F for whole purchases and VAT from suppliers registered for VAT labelled ‘SEC_F_WITH_VAT_PIN1.

 When importing the CSV file for sheet F the place you’ve got native, imports, and digital purchases (from non-residents with out everlasting institution supplying digital providers), you can be required to merge the three various kinds of purchases underneath sheet F (native purchases, imports and Digital purchases) CSV recordsdata the place relevant into one. 

You may open the native purchases CSV SEC_F_WITH_VAT_PIN1, then open the Imports and Digital Purchases CSVs and replica the respective transactions to the native purchases CSV, put it aside as whole purchases for sheet F and import the CSV which is able to include all of your purchases at normal price. Analyse sheet F purchases CSVs to disallow any prohibited enter tax. 

The subsequent step is to import the extracted CSV file for Part H for whole purchases and VAT from suppliers registered for VAT labelled ‘SEC_H_WITH_VAT_PIN1.’ When importing the CSV file for Sheet H the place you’ve got each native purchases and imports that are zero-rated, you can be required to merge the 2 various kinds of buy CSV recordsdata the place relevant into one. 

You may open the native purchases CSV SEC_H_WITH_VAT_PIN1, then open the Imports CSV and replica the respective transactions to the native purchases CSV, put it aside whole purchases for sheet H and import the CSV which is able to include all of your purchases at zero price.  

The taxable worth underneath sheet H might be edited downwards the place relevant earlier than importing the CSV or within the VAT return as soon as imported.  A purchase order bill in a CSV might be deleted/disallowed in full the place relevant earlier than importing the CSV.

Within the subsequent step, repeat the above processes for Purchases underneath sheet I for exempt purchases the place relevant. Sheet I additionally means that you can seize all different native purchases from taxpayers the place VAT was not incurred as a lump sum the place relevant. 

Taxpayers who’ve paid VAT on Imported Companies within the tax interval shall be required to declare the main points in sheet J of the VAT return. To the extent that a part of the VAT on Imported Companies paid is just not an allowable deduction, the taxpayer ought to seize the disallowed part underneath row 16 or 17 of the tax due sheet. 

The place the taxpayer has each taxable and exempt provides, they are going to be required to disallow in full the enter tax attributable to exempt provides and apportion the frequent/shared enter tax as offered underneath part 17(6) of the VAT Act 2013. 

 For the disallowed enter tax attributable to exempt provides, enter the enter tax quantity underneath row 16 of the tax due sheet if it had been claimed in full underneath sheets F and G the place relevant.  For the frequent/shared enter tax incurred for each taxable and exempt provides like stationery, utilities, hire, transport, laptop {hardware} and software program, repairs and so on, enter their whole enter tax underneath row 17 of the tax due sheet if it had been claimed in full in sheet F and G the place relevant.  The return will calculate the deductible enter tax after contemplating the above.

As soon as all of the related CSV recordsdata have been imported, verify you’ve got captured all particulars, and the return has calculated the right VAT due. Proceed to validate the VAT return. 

Then proceed to add the zip file from the paperwork folder, conform to the phrases and click on the ‘OK’ button to file the return.

Upon profitable submission of the Worth Added Tax (VAT) return, proceed to obtain the return receipt. A replica of the return receipt shall be despatched to your iTax registered e mail. The return receipt might be downloaded underneath the helpful hyperlinks menu via the next steps;  Go to the seek the advice of and reprint acknowledgements receipts and certificates.  Choose enterprise course of as tax returns processing and sub-process as unique submitting.  Choose obligation and enter the return quantity (might be retrieved underneath the view filed return choice underneath the returns menu).  Seek the advice of and obtain the acknowledgement receipt.

Lastly, if the taxpayer is in a payable place, they are going to click on on the funds button under the ‘obtain returns receipt’ hyperlink or proceed to the funds menu and observe the steps under;  Choose fee registration, click on subsequent and choose tax head as VAT and Tax Sub Head as Worth Added Tax.  Choose fee kind as self-assessment, then the tax interval and legal responsibility particulars for the tax interval will populate.  Click on add, choose mode of fee and submit.

After that, make funds via any of the agent banks, cellular cash or debit and bank cards.  For cellular cash, the pay invoice quantity is 222222 and the account quantity is the fee registration quantity – PRN.  For funds by debit card, bank card or Mpesa Categorical Choice/Net checkout, use the Make Cost Choice underneath the funds menu or click on on the fee choice offered when you submit the PRN particulars and observe the steps offered.