There is a new era of VAT filing coming to Kenyan exporters soon, as the KRA begins its move towards a new system for VAT returns that integrates export data from the iCMS.
VAT Returns for Exports 2026 KRA iTax Integration, In this regard, the export values entered in the Integrated Customs Management System will now automatically appear in VAT filings submitted through the iTax portal as of May 1, 2026.
What Will Change Regarding VAT Filing?
With this change, KRA will integrate all export information contained in the iCMS and submit it automatically to VAT filings.
This implies that:
- All export values will auto-populate in VAT returns
- Verification of the custom export value will only be considered valid
- There will no longer be manual export values submissions
How the Process of Integrating iCMS & iTax Takes Place
It links the following major systems:
- iCMS (Integrate Customs Management Systems) – in which the export declarations are submitted
- iTax – in which VAT declarations are done
After the export declarations are cleared by Customs, then:
- The value of the exports is checked in iCMS
- Then the same details are uploaded into the iTax as zero-rated supplies
For exports done to:
- Single Customs Territory (EAC region)
- External markets
- Export Processing Zones (EPZs)
- Special Economic Zones (SEZs)
Compliance Issues for Exporters Under the New Regime
For your VAT returns to be accepted, the following should be done:
- A proper KRA PIN should be indicated in the export declarations
- Proper TIMS or eTIMS zero-rated invoice numbers should be indicated
- All export declarations should be validated on iCMS
KRA has clearly said:
All the information on exports that is not associated with a KRA PIN and invoice numbers will not show up in the VAT return.
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Implications for Businesses
The implementation of this new regulation is going to have far-reaching effects on the way business is done.
Pros
- Reduced manual work in VAT filing
- Decreased chances for mistakes and misalignments
- Greater speed and accuracy in tax compliance
Cons
- Stringent documentation practices
- No space for unsubstantiated export claim submissions
- Higher dependence on invoice accuracy and creation
All things considered, this change will reward organized firms and expose disorganized businesses.
Getting Ready before May 2026
What should exporters do? Here’s how to prepare:
- Conduct an audit on your exporting process
- Make sure that all invoices are generated through the TIMS/ e-TIMS system
- Make sure that your clearing agents collect the right PIN information
- Verify that all of your exports go through the iCMS verification process
Delaying these measures could result in errors while filing or even rejections of filings and penalties for not complying.
Conclusion
This change is a step taken by the Kenya Revenue Authority in its efforts towards complete automation of the tax process.
