Kenya VAT Calculator: Add or Remove 16% Instantly

This VAT calculator Kenya tool helps you instantly add 16% VAT to a price, or remove VAT from a VAT-inclusive amount, the way KRA expects on every eTIMS invoice.

By Veira Tax Expert, Senior Tax Advisor at VeiraPublished June 2024Updated June 2024

Calculator

Amount (KES)

I want to

Result

Gross KES 1,160.00 · VAT KES 160.00

Net (exc. VAT)KES 1,000.00

VAT (16%)KES 160.00

Gross (inc. VAT)KES 1,160.00

VAT = Net × 16%. Gross = Net + VAT.

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How VAT works in Kenya

Value Added Tax (VAT) in Kenya is charged at the standard rate of 16% on most goods and services. A small list of items is zero-rated (0%) or exempt. Any business with annual taxable turnover of KES 8 million or more must register for VAT (the Finance Act 2025 raised the threshold from 5 million; voluntary registration is allowed from 5 million).

Once registered, every sale you make must carry a VAT invoice, and from 2024 KRA requires those invoices to flow through eTIMS, the Electronic Tax Invoice Management System. Veira’s POS files them for you automatically.

When to add VAT vs. remove VAT

If you are pricing a product or quoting a customer and your prices are net of tax, you add VAT to find the final price.

If a supplier sent you a VAT-inclusive invoice or you advertise gross prices, you remove VAT to find the taxable base (used for input VAT claims and KRA returns).

Worked examples

Add 16% VAT, supermarket pricing

You buy biscuits at KES 200 net. Selling price with VAT?
VAT = 200 × 16% = KES 32
Gross = 200 + 32 = KES 232

Remove 16% VAT, restaurant invoice

A supplier invoiced you KES 8,700 inclusive of VAT.
Net = 8,700 ÷ 1.16 = KES 7,500
VAT = 8,700 − 7,500 = KES 1,200 (input VAT you can claim).

Frequently asked questions

What is the current VAT rate in Kenya?

16% is the standard VAT rate. Some essential goods (such as bread, milk and unprocessed agricultural produce) are zero-rated, and some services are exempt.

How do I remove VAT from a price in Kenya?

Divide the gross (VAT-inclusive) amount by 1.16. The result is the net amount. The VAT is the difference between the two.

Do I need to file each VAT invoice through eTIMS?

Yes. From 2024 KRA requires every VAT-registered business to issue invoices through eTIMS. Veira POS files them automatically the moment a sale is made.

Can I claim VAT on supplier invoices?

Yes, if you are VAT-registered and the supplier issued you a valid eTIMS-compliant tax invoice with your KRA PIN. This is input VAT and reduces your monthly payable.

Is VAT the same as Withholding VAT?

No. Withholding VAT is a separate KRA mechanism where appointed agents withhold 2% of the VAT on payments and remit it directly to KRA.