Which returns you file
What you file depends on what you are registered for:
- VAT return, filed monthly, if you are VAT-registered
- Income tax return, filed annually, for the business profit
- PAYE, monthly, if you employ staff
- Other obligations such as withholding tax where they apply
What you need before you file
Filing is faster when your records are ready:
- Your sales records for the period, ideally from eTIMS
- Your purchase and expense records with their invoices
- Any input VAT you are claiming, supported by compliant invoices
- Your iTax login
How to file on iTax
The general flow on iTax is:
- Log in to iTax with your PIN and password
- Select the return for the tax you are filing
- Enter the figures from your records, or upload the return template where one is used
- Confirm the tax due
- Submit the return and generate a payment slip
- Pay any tax due through the approved channels before the deadline
How good records make filing easy
Most of the pain of filing comes from reconstructing figures at the last minute. If every sale is recorded through eTIMS and your expenses are kept with their invoices through the year, filing becomes a summary of data you already have. A POS or accounting tool that records and reconciles as you go removes the scramble.
Frequently asked questions
How do I file KRA returns for a small business?
Log in to iTax, select the return for the tax you are registered for, enter the figures from your records, submit, and pay any tax due before the deadline. Keep eTIMS-compliant records through the year so filing is just a summary.
What returns does a small business file in Kenya?
It depends on your registrations: a monthly VAT return if VAT-registered, an annual income tax return on profit, monthly PAYE if you employ staff, and other obligations such as withholding tax where they apply. Confirm what applies to you at kra.go.ke.
Do I need to file a return if I made no sales?
Often yes. Many taxes require a return even when there is nothing to pay, filed as a nil return. Missing a return, even a nil one, can attract a penalty, so confirm your obligations and file on time.
What happens if I file KRA returns late?
Late filing and late payment attract penalties and interest. The cost grows the longer you wait, so file and pay before the deadline. If you have fallen behind, file as soon as possible and confirm any options with KRA.
How does eTIMS help with filing returns?
eTIMS records your sales as compliant invoices through the year, so your sales figure for a VAT or income tax return is already captured and reconciled. That turns filing from reconstructing figures into summarising data you already have.