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How to File Nil Vat Returns on Itax

Patrick, a computer technician, is a dedicated writer who wishes to make the world better by informing individuals who seek more knowledge.

The VAT Obligation

Companies and individual businesses with VAT Obligation in Kenya must submit their VAT returns.

VAT returns are filed every month and the last day of filing is the 20th of any month. Filing your returns after the deadline will attract a penalty. Failing to file your returns is catastrophic as you will be fined 10,000 for each month you have not filed or late filing.

Thus any company Limited or Partnership must file their VAT returns monthly. If your company has not conducted any business, you are still supposed to file your returns.

This is where you file a nil return. In the early days, these returns were being submitted manually but many changes where digital technology is being applied have occurred in Kenya.

Nowadays, filing is being done online using the iTax platform.

For income tax, the filling is done once a year. People in employment income require to have their P9 forms. Some P9 forms can be downloaded online while others are issued by the employer.

The deadline for filing of Income Tax Individual return is June 30 of every year. For now, let us look at how we can fill nill return for VAT.

Requirements for Nil VAT Return Filling

For nil returns, you will be required to have your pin number and password to be able to log into the iTax platform.

If you have not updated your pin from ITMS to iTax, you will be required to do so first. You can check this guide on how to update your PIN to Itax Portal.

The iTax Portal

  • Armed with your pin and password, you only need to type itax.kra.go.ke on your browser. Then enter your pin and click on continue.
  • Enter your password and answer the mathematical quiz you will encounter (security stamp). Click on login to gain access to the Itax portal.
  • After logging into your portal, locate the ‘Returns’ menu and click on it. Then select the option ‘file nil return’.
  • Select the obligation which of course will be Value Added Tax (VAT).
  • Select the period of return which is usually the previous month and then click on submit. You will get this warning, “Dear Taxpayer filing of NIL returns is only applicable in cases where you have NO transactions to declare for the period, Are you sure you want to file Nil return?”
  • After successful submission, a PDF receipt will be available for download. Download it and print it for your records. However, it is not necessary to print this receipt; you can always query the system to see your previous payments.

iTax Log In

iTax Log In Option

iTax Log In Option

System Errors

There are times when the system is having problems. Such times it does not generate an automatic PDF receipt for printing.

What you need to do is to view your filed returns to see if your transaction has gone through. You can also print from this point if need be.

To view your filed returns click on the “Returns’ menu and click on filed returns. Select the tax obligation (VAT), type of return, entity type, the return period from and to, and then click on consult.

You will be able to see the detailed report for that specific month you have selected.

The File Nil Return Option

The File Nil Return Option

The File Nil Return Option

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How to File Nil Return

The VAT Option

The VAT Option on Itax

The VAT Option on Itax

Your view on returns

This article is accurate and true to the best of the author’s knowledge. Content is for informational or entertainment purposes only and does not substitute for personal counsel or professional advice in business, financial, legal, or technical matters.

© 2015 Patrick Kamau

Comments

sammie on June 29, 2016:

cant update my pin....

Patrick Kamau (author) from Nairobi, Kenya on August 25, 2015:

@ Larry Rankin Thanks for the visit and comment.

Larry Rankin from Oklahoma on August 25, 2015:

Great tutorial on an interesting service.

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