Standard 16%, reduced 8% (petroleum), zero-rated exports, exempt finance and agriculture. Calculate VAT-inclusive price, VAT-exclusive price, VAT amount, and reverse VAT extraction.
The standard VAT rate in Kenya is 16%. This applies to most goods and services supplied in Kenya. A reduced rate of 8% applies to petroleum products. Export goods and services are zero-rated.
Petroleum products (diesel, petrol, kerosene) are subject to a reduced VAT rate of 8% instead of the standard 16%. This applies to imports and domestic supplies of petroleum products.
Exempt services include: financial services (banking, insurance), life insurance, educational services, passenger transport, and agricultural services. These do not charge VAT to customers.
To extract VAT from a total amount (reverse VAT): Divide the total by 1.16 to get the net, then subtract net from total to get VAT amount. This calculator does this automatically when you select "Remove VAT" mode.
Businesses with annual turnover exceeding KSh 16 million must register for VAT with KRA. Those below the threshold can voluntarily register. Registration provides the ability to reclaim input VAT on business purchases.
VAT-registered businesses must file monthly VAT returns with KRA and remit VAT owed by the 20th of the following month. Late payment attracts penalties. Quarterly filing may be available for certain businesses.
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