NAIROBI, Kenya — The Kenya Revenue Authority (KRA) has announced a major reform in tax administration that will see export data automatically integrated into Value Added Tax (VAT) returns, in a move aimed at tightening compliance and improving efficiency.
In a public notice, KRA said that effective May 2026, export data captured under the Integrated Customs Management System (iCMS) will be directly linked to VAT return declarations filed through iTax.
The change means that validated export values will be automatically prefilled in VAT returns once the relevant export documentation is processed by Customs, eliminating the need for manual entry by taxpayers.
“This means that validated export values will be automatically prefilled in the VAT return upon issuance of the relevant export documents by Customs,” KRA said in the notice.
The integration will apply to exports to the Single Customs Territory within the East African Community, as well as shipments to other international markets, including those conducted through Export Processing Zones (EPZs) and Special Economic Zones (SEZs).
Under the new system, exporters and their clearing agents will be required to accurately capture the exporter’s Personal Identification Number (PIN) and provide valid Tax Invoice Management System (TIMS/eTIMS) invoice numbers when lodging export documents in iCMS.
Only export data that is validated and properly linked to the taxpayer’s PIN and invoice records will be reflected in VAT returns.
KRA also confirmed that exports of taxable services will be automatically populated in VAT filings based on generated and transmitted TIMS/eTIMS invoices for the relevant tax period.
The move is expected to strengthen enforcement of zero-rated VAT supplies, an area that has historically been prone to inaccuracies and fraudulent claims.
By linking customs data with tax filings, authorities aim to close loopholes and ensure that only legitimate export transactions benefit from VAT relief.
The reform is grounded in Kenya’s broader legal and policy framework governing taxation, including the Value Added Tax Act 2013, which provides for zero-rating of exports, and aligns with ongoing digitisation efforts under the Kenya Revenue Authority to modernise revenue collection systems.
KRA has urged taxpayers, exporters, and clearing agents to familiarise themselves with the new requirements and ensure full compliance ahead of the rollout.
The integration comes as Kenya continues to digitise its public services and strengthen domestic revenue mobilisation, with authorities increasingly relying on data-driven systems to enhance efficiency, reduce tax evasion, and improve service delivery.
