Struggling to file your monthly VAT returns on iTax? You’re not alone. In 2025, KRA’s systems are smarter, with auto-populated returns and ETIMS integration — but many businesses are still confused.
This step-by-step guide is here to simplify everything. Whether you’re a freelancer, SME, or established trader, this article walks you through filing your VAT return correctly, on time, and without penalties.
✅ What You Need Before You Start
Before logging in to iTax, make sure you have:
- Your KRA PIN and password
- All your eTIMS invoices (sales)
- Your purchase records (with VAT)
- Any credit notes or reverse VAT documents
- Internet connection and access to the iTax Portal
💡 Understanding Auto-Populated VAT Returns
KRA now uses eTIMS data to auto-populate your VAT returns with your sales and purchase invoices. Here’s what this means:
| Field | Auto-Populated From | Can You Edit? |
|---|---|---|
| Output VAT (sales) | eTIMS invoices submitted | ❌ No |
| Input VAT (purchases) | eTIMS-verified supplier data | ✅ With limitations |
⚠️ If there are missing purchases, contact your supplier to upload on eTIMS. Learn more from KRA’s VAT Auto-Populated Guide (PDF)
📌 Step-by-Step Guide: How to File Your VAT Return
1. Log In to iTax
Go to https://itax.kra.go.ke, and log in with your PIN and password.
2. Navigate to VAT Return
- Click on “Returns” > “File Return”
- Choose: Tax Obligation: VAT
- Tax period: Select the month (e.g. June 2025)
3. Review Auto-Populated Data
- The sales (output VAT) and purchases (input VAT) from eTIMS are already filled.
- Check for accuracy and ensure all expected purchases are showing.
4. Add Any Manual Entries
- If allowed, enter additional purchase invoices (e.g. reverse VAT).
- Double-check credit notes and zero-rated sales if applicable.
5. Validate and Submit
- Validate the return
- Submit the form
- Download the Acknowledgment Receipt (eReturn)
6. Make Payment (If Payable)
- Generate a payment slip
- Pay via MPESA, bank, or iTax-integrated payment methods
🎯 Pro Tips for 2025
- ✅ Keep your eTIMS entries updated daily
- 📧 Reconcile with your purchase invoices to avoid underclaiming VAT
- 📅 File by the 20th of the next month to avoid penalties
- 🔁 Regularly match your iTax return vs. bank vs. sales ledger
❓ Frequently Asked Questions (FAQs)
1. What happens if my input VAT is missing in the auto-populated form?
Contact your supplier to either issue you with an updated eTIMS invoice or issue you with a credit note for incorrect invoice. You have 6 months to claim an invoice generated/issued.
2. Can I file VAT returns on eTIMS?
No. ETIMS is for invoicing. VAT returns are filed only on iTax.
3. Can I delete an eTIMS invoice?
You can only correct through credit notes, not deletion.
4. What if my sales and VAT return figures don’t match?
This may trigger KRA scrutiny. Reconcile and correct discrepancies.
🔚 Final Thoughts
Filing VAT returns in 2025 is easier — but also stricter. The move to automation means your data must be accurate, reconciled, and timely. The best advice? Stay consistent, keep records clean, and file on time.
📩 Need Help?
We at Ushuru.com help Kenyan businesses file VAT returns, reconcile sales, and respond to KRA audits. Book a consultation or chat with our tax assistant now.