💡 Introduction
KRA’s introduction of the Auto-Populated VAT Return in March 2024 marked one of the biggest digital compliance shifts since the rollout of eTIMS.
By 2025, the system has evolved — linking eTIMS, TIMS, and Customs (ICMS) data — to automatically prefill most of your VAT return. This guide breaks down how it works, what’s new, and how to stay compliant under the VAT Act 2013 and Tax Procedures Act 2015.
🧾 What Is the Auto-Populated VAT Return?
The Auto-Populated (Prefilled) VAT Return is a new KRA filing system that automatically imports your:
- Sales data from transmitted eTIMS/TIMS invoices
- Purchases from your suppliers’ eTIMS submissions
- Import VAT from Customs Business Systems (ICMS)
- Digital service purchases from non-resident providers
This automation reduces errors and under-declarations by validating all invoices before submissionFAQS-FOR-THE-VAT-AUTOPOPULATED-….
🧩 How It Works
1️⃣ Your sales invoices are automatically transmitted from eTIMS/TIMS to iTax.
2️⃣ Your purchases are matched from your suppliers’ eTIMS submissions.
3️⃣ Imports and Digital Service Tax (DST) transactions are validated from KRA systems.
4️⃣ You log in to iTax → open the VAT return → review, adjust (where allowed), and submit.
🧮 Step 1: Declare Sales
a. Transmitted eTIMS/TIMS Sales
All transmitted invoices appear automatically and cannot be altered (PIN, invoice number, date, taxable amount are locked).
b. Un-Transmitted Invoices
If an eTIMS/TIMS-compliant invoice wasn’t transmitted (e.g., offline device), you must manually declare it in the same tax period. Use the “Lump-Sum Sales” field.
📘 Example: An invoice dated 4 July 2024 but transmitted on 31 August 2024 still belongs to July 2024FAQS-FOR-THE-VAT-AUTOPOPULATED-….
c. Self-Supply Transactions
If your own PIN appears as the customer, reclassify under Sales to Non-VAT Registered Customers (Lump-Sum Sales)FAQS-FOR-THE-VAT-AUTOPOPULATED-….
d. Credit Notes
- Claimable within 6 months of the original invoice date.
- Must reference a valid transmitted invoice numberFAQS-FOR-THE-VAT-AUTOPOPULATED-….
🧾 Step 2: Claim Input VAT
a. Transmitted Purchases (Local)
Only valid transmitted eTIMS/TIMS invoices can be claimed.
- You cannot edit supplier PIN, invoice number, or taxable amount.
- You may defer or apportion claims per Section 17 of the VAT Act 2013FAQS-FOR-THE-VAT-AUTOPOPULATED-….
b. Credit Notes (Purchases)
Mandatory declaration under Section F (General Rated Purchases) — failure triggers an errorFAQS-FOR-THE-VAT-AUTOPOPULATED-….
c. VAT Special Table Suppliers
If a supplier appears in KRA’s VAT Special Table, their input claim is blocked. Remove such invoices or ask the supplier to regularize their VAT statusFAQS-FOR-THE-VAT-AUTOPOPULATED-….
d. Dormant/Deactivated VAT PINs
Claims from deactivated suppliers are rejected until reactivationFAQS-FOR-THE-VAT-AUTOPOPULATED-….
e. Digital Supply Marketplace Inputs
- The digital supplier must file VAT and declare your PIN.
- Once visible in iTax, it’s auto-populated and claimable under the DST CSVFAQS-FOR-THE-VAT-AUTOPOPULATED-….
f. Imports
System validates against ICMS; claims accepted only when:
- Entry number valid and unpaid elsewhere
- Taxes fully paid
- Status = “settled” or “removed”
Otherwise, contact Customs to update statusFAQS-FOR-THE-VAT-AUTOPOPULATED-….
g. Six-Month Rule
You can claim any input (local, import, digital) within 6 months after the supply periodFAQS-FOR-THE-VAT-AUTOPOPULATED-….
🧠 Step 3: Use the Invoice Checker
KRA’s enhanced Invoice Checker now displays:
- Invoice type and transmission date
- Buyer’s name and PIN
- Error messages for missing transmissions
If an invoice isn’t found, check your eTIMS device or scan its QR code to confirm transmissionFAQS-FOR-THE-VAT-AUTOPOPULATED-….
⚠️ Common Mistakes (and Fixes)
| Mistake | Fix |
|---|---|
| Claiming from non-compliant suppliers | Verify PIN on VAT Special Table |
| Forgetting un-transmitted invoices | Add under “Lump-Sum Sales” |
| Wrongly declaring self-supply | Move to non-VAT customer field |
| Not declaring credit notes | Mandatory in both sales & purchases |
| Claiming import VAT before ICMS settlement | Wait until “settled” status |
✅ Best Practices for 2025
- Reconcile eTIMS vs VAT return monthly.
- Use the Invoice Checker before submission.
- Always confirm suppliers’ VAT compliance on iTax.
- Retain CSV backups for audit trail.
- File on time — penalties under the Tax Procedures Act 2015 still apply.
🤔 FAQs
Q1: Can I edit prefilled details?
➡️ No. Certain fields like PIN, invoice number, and taxable value are locked.
Q2: What if my ETIMS device was offline?
➡️ Declare manually as “Lump-Sum Sales,” then transmit once connectivity is restored.
Q3: Can I claim purchases from a dormant supplier?
➡️ No, until their VAT obligation is reinstated by KRA.
Q4: What if import VAT doesn’t appear?
➡️ Ensure ICMS status = “settled” and the correct PIN is listed as consignee.
🏁 Conclusion
Kenya’s Auto-Populated VAT Return marks a new phase of intelligent, data-driven compliance.
It saves time, reduces human error, and strengthens input VAT claim integrity.
For 2025, the goal is simple:
“If it’s not on eTIMS, it won’t appear on your VAT return.”
📩 Need help reconciling your eTIMS data or VAT return?
Visit Ushuru.com or contact our tax experts for step-by-step filing support.