Kenya VAT Calculator: Add & Remove KRA VAT (2026)
Calculate VAT in Kenya instantly — add or remove the 16% standard rate from any amount, with a full breakdown of net, tax and gross under KRA rules.
Advanced: custom rate override
Useful for zero-rated planning or a temporary rate. Overrides the country default and any Ghana component breakdown.
- Net amount (excl. VAT)
- KSh1,000.00
- VAT (16.0%)
- KSh160.00
- Gross amount (incl. VAT)
- KSh1,160.00
- Effective rate used
- 16.0%
Based on Kenya’s standard VAT rate as of 2026. Zero-rated or exempt supplies are not automatically detected — use the custom rate override above if your transaction falls under one.
Kenya VAT Calculator: How KRA VAT Is Added and Removed
Last updated: August 2026·Reviewed by Wanjiru Kamau, Tax Analyst in Nairobi·Source
Kenya's standard VAT rate is 16% — but since 2024, correctly charging that rate isn't enough on its own; KRA generally only accepts input VAT claims backed by an eTIMS-compliant invoice.
How it's calculated
Adding VAT to a net price is multiplication by 16%. Removing VAT from an inclusive figure requires dividing by 1.16, not subtracting 16% directly, since the tax was calculated on the smaller net base.
| Task | Formula |
|---|---|
| Add VAT to a net price | Net price × 1.16 |
| Remove VAT from a VAT-inclusive price | Inclusive price ÷ 1.16 |
| VAT registration threshold | KES 5,000,000 annual taxable turnover |
Worked example
An invoice for KES 52,200 already includes VAT, and you need the fee before tax.
- Net amount: KES 52,200 ÷ 1.16 = KES 45,000
- VAT portion: KES 52,200 − KES 45,000 = KES 7,200
So of the KES 52,200 total, KES 7,200 is VAT owed to KRA — the actual service fee is KES 45,000.
Things to know
- eTIMS (Electronic Tax Invoice Management System) has been mandatory since 2024 — input VAT can generally only be reclaimed against an eTIMS-compliant invoice, so invoice format matters as much as the rate charged.
- Registration is mandatory once annual taxable turnover exceeds KES 5,000,000; voluntary registration is available below that.
- A narrower 8% rate has applied at various times to specific petroleum products — it isn't a general reduced rate, and it has changed through successive Finance Acts, so confirm current treatment with KRA before assuming it applies.