VAT Calculator — Kenya (2026)
Add VAT to a price or remove VAT from a VAT‑inclusive price. Supports 16%, 8% and 0% (zero‑rated) modes.
2026 Rates
Last verified: Today
Assumptions & Notes
VAT handling for Kenya (2026).
Add vs Remove
Method & Rounding
Calculator scope
Zero‑rated vs exempt
Withholding VAT (2%)
Import VAT
Rates source
How This VAT Calculator Works
Understanding how to add or remove VAT from prices in Kenya with 2026 rates
Step 1: Choose VAT Direction
Select whether you want to add VAT to a price (VAT-exclusive to VAT-inclusive) or remove VAT from a price (VAT-inclusive to VAT-exclusive). Adding VAT is for creating invoices; removing VAT is for extracting the VAT amount from a total.
Step 2: Select VAT Rate
Choose the appropriate VAT rate: 16% (standard rate for most goods and services), 8% (reduced rate for petroleum products), or 0% (zero-rated for exports and specific exempt items). The 2026 Kenya VAT rates are built into the calculator.
Step 3: Enter Amount
Input the amount you want to calculate VAT for. If adding VAT, enter the VAT-exclusive price. If removing VAT, enter the VAT-inclusive total. The calculator automatically computes the VAT amount and the corresponding totals.
Step 4: View Results
See three key values: VAT-exclusive amount (base price), VAT amount (tax), and VAT-inclusive total (final price). Use these for invoicing, accounting, or price planning. All calculations follow 2026 Kenya VAT regulations.
Understanding Your VAT Results
What each component means and how VAT calculations work in Kenya
VAT-Exclusive Amount
The base price before VAT is added. This is the amount the seller receives before tax. For businesses, this is your revenue before VAT. When creating invoices, start with this amount and add VAT to get the customer's total.
VAT Amount
The tax amount calculated at 16%, 8%, or 0%. This is what you remit to KRA (minus input VAT credits if VAT-registered). For 16% VAT, multiply the exclusive amount by 0.16. For 8%, multiply by 0.08.
VAT-Inclusive Total
The final price customers pay, including VAT. This is the VAT-exclusive amount plus the VAT amount. For 16% VAT, it's the exclusive amount × 1.16. This is what appears on customer invoices and receipts.
Reverse VAT Calculation
When removing VAT from a total, divide the inclusive amount by 1.16 (for 16% VAT) to get the exclusive amount. The VAT amount is the difference. This is useful for extracting VAT from receipts or supplier invoices.
Zero-Rated vs Exempt
Zero-rated (0% VAT) items are taxable supplies where VAT is charged at 0%. Input VAT may be claimable. Exempt items are not subject to VAT at all, and input VAT is generally not claimable. Use 0% only for zero-rated items.
VAT Registration Threshold
Businesses with annual taxable turnover exceeding KES 5 million must register for VAT. Once registered, you charge VAT on sales and can claim input VAT on purchases. This calculator helps VAT-registered businesses with pricing and invoicing.
When to Use This VAT Calculator
Common situations where VAT calculations are essential for businesses and consumers
1 Invoice Creation
When creating customer invoices, use this calculator to add 16% VAT to your prices. Enter your VAT-exclusive price to get the VAT amount and VAT-inclusive total for the invoice. Ensures accurate VAT charging and KRA compliance.
2 Price Planning
When setting prices, calculate how much VAT adds to your costs. If you want customers to pay KES 10,000 total, work backwards to find the VAT-exclusive price. Helps with competitive pricing and profit margin planning.
3 Receipt Analysis
Extract VAT amounts from supplier receipts or customer payments. Enter the VAT-inclusive total to see the VAT-exclusive amount and VAT component. Essential for accounting, bookkeeping, and VAT return preparation.
4 VAT Return Preparation
Calculate output VAT (VAT charged to customers) and input VAT (VAT paid to suppliers) for your VAT returns. Accurate VAT calculations ensure correct remittance to KRA and avoid penalties for under-declaration.
5 Import Cost Estimation
Estimate VAT on imported goods (typically 16% on CIF value + duty + levies). While this calculator doesn't handle customs duty, it helps estimate the VAT component of your total import costs for budgeting.
6 Petroleum Products (8% VAT)
Calculate the reduced 8% VAT rate for petroleum products. Select 8% rate and enter amounts to see VAT calculations for fuel, diesel, kerosene, and other petroleum items subject to the reduced rate.
Official Data Sources
Our VAT calculations use official 2026 Kenya VAT rates and regulations
- Kenya Revenue Authority (KRA) — The standard VAT rate in Kenya is 16% as of 2026. A reduced rate of 8% applies to petroleum products. Zero-rated (0%) applies to exports and specific items listed in the VAT Act.
- VAT Act, 2013 — Governs VAT administration in Kenya. Defines taxable supplies, VAT rates, registration thresholds (KES 5 million annual turnover), and compliance requirements. All VAT calculations must follow this legislation.
- Finance Act, 2024 — Confirms VAT rates for 2026: 16% standard, 8% reduced (petroleum), 0% zero-rated. No changes to VAT rates from 2025. Businesses must charge correct rates and file monthly VAT returns.
- VAT Registration Threshold — Businesses with annual taxable turnover exceeding KES 5 million must register for VAT. Voluntary registration is available for businesses below the threshold. Registration enables input VAT claims.
- Zero-Rated vs Exempt — Zero-rated supplies (0% VAT) are taxable but charged at 0%. Input VAT may be claimable. Exempt supplies are not subject to VAT, and input VAT is generally not claimable. Know the difference for compliance.
- Last Verified: . We verify our calculations against official KRA VAT rates and regulations. All rates are current for 2026.
Real-World VAT Examples (2026)
See comprehensive VAT calculations for common business scenarios in Kenya with 2026 rates
Add 16% VAT to Invoice
VAT-Exclusive: KES 10,000
VAT Rate: 16% (standard)
VAT Amount: KES 1,600
VAT-Inclusive Total: KES 11,600
Customer Pays
KES 11,600
Remove 16% VAT from Receipt
VAT-Inclusive Total: KES 5,800
VAT Rate: 16% (standard)
VAT-Exclusive: KES 5,000
VAT Amount: KES 800
VAT Component
KES 800
Add 8% VAT (Petroleum)
VAT-Exclusive: KES 20,000
VAT Rate: 8% (reduced)
VAT Amount: KES 1,600
VAT-Inclusive Total: KES 21,600
Customer Pays
KES 21,600
Zero-Rated Export
VAT-Exclusive: KES 50,000
VAT Rate: 0% (zero-rated)
VAT Amount: KES 0
VAT-Inclusive Total: KES 50,000
Customer Pays
KES 50,000
VAT — FAQs
Short answers about VAT calculations in Kenya.
Zero‑rated items have 0% VAT and allow input VAT claims; exempt items have no VAT charged and usually no input VAT claim.
VAT = inclusive × r ÷ (1 + r). Exclusive = inclusive ÷ (1 + r).
This simple tool focuses on single amounts. For invoices with multiple lines, compute each line or use an external spreadsheet.
16% (standard), 8% (reduced examples), and 0% (zero‑rated). Exempt supplies are not VAT‑able.
By default we round to cents (2 d.p.). Toggle off to show whole‑shilling results.
Yes — choose “Remove VAT” and set the rate to 8% to split the inclusive amount into VAT and exclusive.
We show customer totals only. Withholding VAT (2%) is a separate mechanism for appointed agents and does not change the customer total here.
No, import VAT is different (CIF + duty + levies at the standard rate). This tool focuses on sales VAT.
Yes. Use “Copy share link” to generate a URL that restores your inputs and auto‑computes when opened.
Small differences come from different rounding sequences (per‑line vs total). We round consistently per the chosen setting.
All values are in Kenyan shillings (KES). We format results accordingly.
Yes — supported rates and formulas reflect 2026 policy. Always confirm rate changes against KRA notices.
Zero-rated items include exports, agricultural supplies, medical supplies, educational materials, and specific items listed in the VAT Act. Check the KRA website for the complete list of zero-rated supplies.
Register for VAT through the KRA iTax portal if your annual taxable turnover exceeds KES 5 million. You'll need a KRA PIN, business registration documents, and bank details. Voluntary registration is available for businesses below the threshold.
Only if you're VAT-registered and the purchases are for taxable supplies. Input VAT on exempt supplies is not claimable. Keep proper VAT invoices from suppliers to support your input VAT claims on your VAT returns.
KRA charges a 5% penalty on unpaid VAT plus 1% interest per month. Late filing incurs a penalty of KES 10,000 or 5% of the tax due, whichever is higher. File and pay VAT by the 20th of the following month to avoid penalties.
Services exported to non-residents are generally zero-rated (0% VAT). However, specific rules apply depending on the service type and where it's consumed. Consult the VAT Act or a tax advisor for your specific service exports.
Yes, use it to verify VAT amounts on individual transactions. For VAT returns, sum all output VAT (sales) and input VAT (purchases) for the period. The difference is what you remit to KRA. This calculator helps with transaction-level accuracy.
Issue a credit note to reverse the incorrect invoice, then issue a new invoice with the correct VAT rate. Adjust your VAT return accordingly. For significant errors, consult KRA or a tax advisor to ensure proper correction and compliance.
VAT rates are typically confirmed in Kenya's annual Finance Act (July/August). The 16% standard rate has been stable for years. We update this calculator immediately when KRA announces any VAT rate changes. Subscribe for 2027 rate alerts.