The Kenya Revenue Authority (KRA) has announced that export processes on the Integrated Customs Management System (iCMS) will be integrated with Value Added Tax (VAT) return filing on iTax.
In a public notice on Tuesday, April 28, the taxman said the changes will take effect from May 1, 2026.
KRA noted that export data captured and validated in iCMS will automatically be reflected in VAT returns filed through iTax.
According to the authority, the change will apply to exports destined for the Single Customs Territory, as well as other international markets, including Export Processing Zones (EPZs) and Special Economic Zones (SEZs).
“Kenya Revenue Authority 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.
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“This means that validated export values will be automatically prefilled in the VAT return upon issuance of the relevant export documents by Customs,” read the notice in part.
KRA also said exporters and their clearing and forwarding agents will be required to ensure accurate data capture during the export process.
This includes providing the exporter’s Personal Identification Number (PIN) and valid TIMS or eTIMS zero-rated invoice numbers when lodging export documents in iCMS.
The taxman made it clear that only export values that are validated in iCMS and properly linked to the exporter’s PIN and invoice will be allowed in the VAT return.
“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,” KRA stated.
Further, the authority said exports of taxable services will also be prefilled in iTax based on generated and transmitted TIMS or eTIMS invoices for the relevant tax period.
The changes come weeks after KRA ordered the removal of taxpayers from the infamous special table.
In an internal memo on Wednesday, March 10, KRA said it has discontinued the placement of taxpayers on the special table.
The authority noted that the special table was introduced as a deterrence tool for tax evaders and people involved in tax fraud and crime.
However, the taxman admitted that the tool has been abused and used to punish genuine taxpayers and businesses.
“Special table was introduced in the compliance programme as a deterrence tool for tax evaders and persons involved in tax fraud and crime. However, it has since evolved into the only tool that is being employed to enforce compliance in all aspects.
“This has led to abuse of the tool and punishing of genuine business people and taxpayers instead of facilitating them to do business and subsequently pay their fair share of taxes,” read part of the memo.
KRA instructed that all taxpayers who have been placed on the special table for reasons other than tax fraud or missing trader schemes be removed from the list unconditionally.
