The Kenya Revenue Authority (KRA), has announced a new integration of export data between its iCMS and iTax systems, marking a shift in how VAT returns for exporters will be handled.
The change is set to take effect in May 2026 and will see export data automatically reflected in VAT filings.
Under the new structure, export data gathered in the Integrated Customs Management System (iCMS) will be connected directly to VAT reports submitted via iTax. Export data for zero-rated supplies will be prefilled in VAT returns once Customs has validated them.
This significant development implies that exporters will no longer have to manually enter verified export values when completing VAT returns. Instead, after issuing export documents, the system will automatically populate the appropriate information.
The integration applies broadly across different export categories. These include exports to the Single Customs Territory, other international destinations, as well as transactions within Export Processing Zones (EPZs) and Special Economic Zones (SEZs).
System Integration Aims to Improve Accuracy
The change is intended to improve accuracy and uniformity in tax reporting. By directly tying export validation to VAT filing, the authority hopes to decrease disparities between claimed export values and customs data.
However, the system imposes greater data requirements. Exporters, as well as their clearing and forwarding agencies, will be expected to include particular information when submitting export paperwork to iCMS. These contain the exporter’s Personal Identification Number (PIN) and a current TIMS or eTIMS zero-rated invoice number.
Only export values that match these validation requirements and are properly connected to both the exporter’s PIN and the invoice will be accepted in VAT refunds. This basically establishes a closed-loop system in which only validated transactions are considered for tax reasons.
In addition to goods, exports of taxable services will also be incorporated into the system. These will be prefilled in iTax based on invoices generated and transmitted through TIMS or eTIMS for the relevant tax period.
Compliance Requirements Tighten for Exporters
The adjustments indicate an increased emphasis on compliance and data integrity. Exporters must confirm that all paperwork supplied through iCMS aligns with invoicing records captured under TIMS or eTIMS systems.
Taxpayers seeking clarification or assistance have been directed to contact the KRA Contact Centre through telephone or email. The authority has provided multiple contact channels to support the transition and address any operational challenges that may arise.
The announcement was issued by the Commissioner for Micro and Small Taxpayers, underscoring the relevance of the changes to a wide segment of the business community, particularly exporters operating across different scales.
With implementation scheduled for May 2026, exporters are expected to align their systems and processes in preparation for the transition.
