How do I calculate 16% VAT in Kenya?

If the price is VAT exclusive, VAT = amount × 16% and VAT inclusive total = amount + VAT. This is called 'Add VAT'.

How do I remove VAT from a VAT inclusive amount in Kenya?

Reverse VAT: VAT exclusive amount = inclusive amount × 100 ÷ (100 + 16). VAT amount = inclusive amount − exclusive amount.

What is VAT withholding in Kenya?

Designated withholding VAT agents appointed by KRA withhold a portion of the VAT charged on an invoice and remit it directly to KRA. The withheld VAT can be claimed by the supplier as input tax.

What is VAT payable in Kenya?

VAT payable = Output VAT (on sales) minus Input VAT (on purchases). A positive result means VAT is due to KRA by the 20th of the following month. A negative result is a VAT credit or refund position.

When is VAT due in Kenya?

VAT returns must be filed and payments made by the 20th of the month following the tax period. Late filing attracts a penalty of KES 10,000 or 5% of the tax due (whichever is higher) plus 1% monthly interest on unpaid tax.

What is the VAT registration threshold in Kenya?

Businesses with annual taxable turnover exceeding KES 5,000,000 must register for VAT. Businesses below this threshold may register voluntarily.

VAT Calculator Kenya – May 2026

Calculate Kenya VAT: add 16% VAT, reverse VAT, withholding VAT, or VAT payable (Output VAT − Input VAT) for your business.

Add VAT to a price your customer will pay, or strip VAT from a VAT-inclusive total to find the base price.

1,000 5,000 50,000 100,000 500,000 1,000,000

Amount (KES)

VAT Rate (%)

16% Standard 8% LPG/Fuel 0% Zero-rated

Kenya VAT rates: 16% (standard), 8% (LPG & certain fuel), 0% (zero-rated exports, basic foods).

What are you doing?

Add VAT — my price is VAT exclusive Remove VAT — my price is VAT inclusive

Please enter a valid amount and VAT rate.

KRA-appointed withholding VAT agents must withhold a portion of VAT from invoices and remit it directly to KRA. Use this to compute the withheld VAT and what you will actually receive.

Invoice Amount (KES)

Invoice amount is:

VAT Exclusive (base amount before VAT) VAT Inclusive (VAT already in the amount)

VAT Rate (%)

Withholding Rate (%) Commonly 2%. Edit to match your actual withholding rate.

Please enter a valid amount and rates.

Calculate your VAT position for the period: Output VAT on sales minus Input VAT on purchases. Positive = you owe KRA. Negative = you are in a VAT credit/refund position.

Sales 100k Sales 500k Sales 1M

Total Sales Amount (KES)

Sales figure is:

VAT Exclusive (before VAT) VAT Inclusive (VAT already in figure)

Total Purchases / Expenses (KES)

Purchases figure is:

VAT Exclusive VAT Inclusive

VAT Rate (%)

Please enter valid sales, purchases and VAT rate.

VAT Results

Add / Remove VAT

VAT Inclusive Total

KES 0.00

What the customer pays

VAT Amount

KES 0.00

at 16%

VAT Exclusive Amount

KES 0.00

Base price before VAT

Mode

—

Step-by-step calculation

Base amount KES 0.00

VAT formula applied —

= VAT amount KES 0.00

= VAT inclusive total KES 0.00

Zero-rated (0%) goods include basic foodstuffs, exports and certain medical supplies. Exempt supplies (e.g. financial services) have no VAT at all and no input VAT claim.

Withholding VAT

Amount You Will Receive (KES)

KES 0.00

Invoice total minus withheld VAT

VAT Withheld by Agent (KES)

KES 0.00

Paid to KRA on your behalf

VAT on Invoice (KES)

KES 0.00

Net Invoice (Before VAT)

KES 0.00

Step-by-step breakdown

Net amount (VAT exclusive) KES 0.00

+ VAT (16% on net) KES 0.00

= Gross invoice total KES 0.00

− Withholding VAT (2% of net invoice) KES 0.00

= Amount you receive KES 0.00

💡 For Your Business

📄 Always obtain a Withholding VAT Certificate from the agent. This is your proof that VAT was withheld and paid to KRA on your behalf.

📋 Declare the withheld VAT in your VAT return as a tax credit — it offsets your output VAT liability for the period.

📅 The agent must remit the withheld VAT to KRA by the 20th of the following month. You can verify receipt on iTax.

⚠️ If you are not a VAT-registered supplier, the agent should not be charging or withholding VAT on your invoice — confirm your VAT registration status.

Withholding VAT is a cash flow item, not an additional tax cost — it is credited against your VAT payable for the period.

VAT Payable

Net VAT Position

KES 0.00

Output VAT − Input VAT

Status

—

Output VAT (on Sales)

KES 0.00

Input VAT (on Purchases)

KES 0.00

Full VAT calculation

Sales (VAT exclusive) KES 0.00

Output VAT (16% on sales) KES 0.00

Purchases (VAT exclusive) KES 0.00

Input VAT (16% on purchases) KES 0.00

= Net VAT (Output − Input) KES 0.00

Annual estimate (× 12 months) KES 0.00

Ensure only VAT on business-related purchases is claimed as input VAT. Private/personal expenses are not claimable.

Kenya VAT quick reference
Standard rate: 16% | LPG / certain fuel: 8% | Zero-rated (exports, basic food, medical): 0%
Registration threshold: KES 5,000,000 / year | Filing deadline: 20th of following month via iTax