Inside the VAT Pre-Populated Return System, KRA’s Simplified Way of Filing Returns

BT ReporterDec 20, 2024120

The development presents a paradigm shift from manual data analysis in preparation of VAT returns to using an automated system.

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Individuals and businesses using iTax, TIMS, eTIMS and customs business systems will have an easier time filing returns via the newly introduced VAT Pre-Populated Return System as all transactions have been captured and automatically uploaded on every taxpayer’s portal.

The development presents a paradigm shift from manual data analysis in preparation of VAT returns to using an automated system that fills in every transaction captured from every payment digital platform integrated with iTax, TIMS, eTIMS and customs business systems.

“The VAT pre-populated return filling system reflects KRA’s commitment to simplifying tax processes,” said the Commissioner for Domestic Taxes, Mrs Rispah Simiyu. “We are empowering businesses with a more transparent, efficient, and user-friendly tax reporting system as we explore further possibilities of a fully web based VAT return and a taxpayer dashboard to provide real time view of all the sales and purchases for a given taxpayer.”

Mrs Simiyu said the Kenya Revenue Authority (KRA) seeks to transform tax administration with the VAT pre-populated return filing system for subsequent months once per tax filing period is due on the 20th of every month.

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“This is a significant step towards simplification of the VAT return filing process while leveraging on technology to enhance VAT compliance and customer experience,” she said. To enhance tax compliance every VAT registered business (taxpayer) is required to issue and transmit electronic tax invoices to KRA through TIMS/eTIMS for all sales as required by law.

Using the automatically generated QR code reader and an invoice checker accessed on itax.kra.go.ke, taxpayers can verify whether their purchase invoices have been generated from TIMS/eTIMs or not and whether they include buyer details required for input tax claims. Mrs Simiyu said every VAT registered taxpayer should verify the accuracy of their pre-populated VAT returns prior to submission to avoid errors in their filled VAT returns.

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