The Kenya Revenue Authority (KRA) will integrate export data captured in the Integrated Customs Management System (iCMS) with VAT returns filed through the iTax platform starting May 1, 2026. This new system aims to significantly reduce manual errors and improve compliance for exporters.
Validated export values will be automatically prefilled in VAT returns once relevant export documents are approved by Customs. Exporters must capture their Personal Identification Number (PIN) and a valid TIMS or eTIMS zero-rated invoice number when lodging export documents in iCMS. Only export values validated in iCMS and linked to the exporter’s PIN and invoice will be allowed in the VAT return.
The integration is expected to tighten oversight of VAT refund claims by linking customs and tax data. Previously, exporters had to declare export sales in VAT returns separately from customs filings, leading to discrepancies. Errors or omissions at the customs declaration stage will directly affect VAT outcomes under the new system.
KRA has advised taxpayers to ensure their documentation complies with the new requirements ahead of the May 2026 implementation date. The change applies to exports to the Single Customs Territory, other foreign countries, Export Processing Zones (EPZs), and Special Economic Zones (SEZs).
Key facts:
- The integration aims to improve accuracy, reduce manual errors, and enhance compliance in VAT reporting.
- The system will also apply to exports of taxable services based on TIMS/eTIMS invoices for the relevant tax period.
- This change aims to streamline tax reporting and ensure only verified export transactions are reflected in VAT filings.
KRA stated, “Only export values validated in ICMS and linked to the exporter’s PIN and invoice will be allowed in the VAT return.” This statement underscores the importance of accurate documentation for exporters moving forward.
