Starting in May 2026, Kenyan exporters will benefit from a more streamlined tax filing process as the Kenya Revenue Authority (KRA) introduces a new digital integration between its customs and tax platforms. This system will automatically prefill Value-Added Tax (VAT) returns with customs-validated export data, significantly reducing manual entry and potential errors for businesses.
The KRA officially announced this shift through a public notice, explaining that the move integrates the Integrated Customs Management System (iCMS) with the iTax platform. This connection ensures that once Customs validates an export, the corresponding values appear instantly in the taxpayer’s VAT return under zero-rated supplies.
“KRA notifies taxpayers and the public that, effective May 2026, the VAT return export data in ICMS will be integrated with the declaration of zero-rated supplies in the VAT return in iTax. This means that validated export values will be automatically prefilled in the VAT return upon issuance of the relevant export documents by Customs,” the notice reads.
This automation covers a wide range of trade activities, including exports bound for the Single Customs Territory, foreign nations, Export Processing Zones (EPZs), and Special Economic Zones (SEZs). Furthermore, the system extends to the export of taxable services; these entries will populate in iTax based on TIMS/eTIMS invoices generated and transmitted during the specific tax period. By linking these digital trails, the tax authority aims to enhance transparency and simplify compliance for the country’s growing export sector.
The Kenya Revenue Authority (KRA) has set strict requirements for the new automated system, noting that only data that meets specific validation criteria will qualify for prefilling. To ensure a seamless transition, the tax authority mandates that export values must be validated within the iCMS and correctly linked to the exporter’s Personal Identification Number (PIN) and a valid TIMS/eTIMS zero-rated invoice.
Under these new guidelines, exporters and their clearing agents must exercise high levels of precision during the documentation process. The KRA stressed that agents must accurately capture the exporter’s PIN and specific invoice details when they lodge export declarations in the iCMS.
“To support accurate prefilling, exporters and their clearing and forwarding agents must capture the exporter’s PIN and valid TIMS/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 KRA stated.
The primary goal of this integration is to sharpen the accuracy of VAT reporting while eliminating common discrepancies found in manual declarations. By ensuring that only verified transactions appear in tax filings, the KRA expects to significantly reduce manual errors and simplify the entire submission cycle for businesses.
This move marks a shift toward total data consistency between customs records and tax returns. The system not only lightens the administrative load for taxpayers but also strengthens the KRA’s ability to monitor compliance in real-time. Moving forward, the tax authority advises all stakeholders to verify their documentation entries carefully, as the automated system will only process and prefill records that show a perfect match.
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