Free tools for sellers
VAT calculator (16%)
Add VAT to a price, take it out of one, and see whether you need to register.
Price with VAT
KSh 1,160.00
- Price before VAT
- KSh 1,000.00
- VAT at 16%
- KSh 160.00
- Price with VAT
- KSh 1,160.00
How do I calculate 16% VAT in Kenya?
Multiply the price before VAT by 0.16 to get the VAT, or by 1.16 to get the price including VAT. KSh 1,000 plus VAT is KSh 1,160.
How do I remove VAT from a price?
Divide the VAT-inclusive price by 1.16. KSh 1,160 including VAT is KSh 1,000 before VAT, so the VAT is KSh 160. Subtracting 16% of 1,160 (KSh 185.60) is wrong.
When must a business register for VAT in Kenya?
When its taxable sales reach KSh 5 million in any 12-month period (VAT Act, section 34). The Finance Act 2026 left the threshold unchanged, though KRA has proposed scrapping it. Below the threshold, most small sellers pay turnover tax instead.
Do I charge VAT if I am not registered?
No. Only VAT-registered businesses may charge VAT and issue VAT invoices through eTIMS.
Invoices for VAT go through eTIMS — see eTIMS for small sellers.
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