Tax, VAT, customs and trade alerts

We provide a wealth of publications by PwC Kenya providing informed commentary on current developments in the tax arena.

Through analysis and comment on new law and judicial decisions of interest, they assist business executives to identify developments and trends in tax law and revenue practice that might impact their business.

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In this alert:

iCMS–iTax integration: New VAT era for exporters

The Kenya Revenue Authority (“KRA”) has issued a public notice confirming a significant shift in VAT compliance for exporters.

Effective May 2026, only export data validated through the Integrated Customs Management System (“iCMS”) will be pre-filled in the auto-populated VAT return in iTax. Manual input of export values in the VAT return will no longer be available for exported goods.

This development introduces a data-driven and automated validation framework that will fundamentally change how export transactions are recognized for VAT purposes. It presents both compliance risks and opportunities for businesses to strengthen controls and improve VAT refund outcomes.

Historically, exporters focused on accuracy at the point of VAT return preparation. Going forward, the critical control point moves upstream to TIMS/eTIMS invoicing, Customs declaration and proof-of-export documentation. 

Data accuracy, system alignment, and coordination across finance, tax, and logistics will be critical to avoid compliance gaps, audit exposure, and refund delays. Where any link is missing, incorrect or incomplete, the export transaction will not be validated, and the relevant particulars will not auto-populate in the VAT return. 

Now is the time to assess whether your operating model, controls, and reconciliation processes are fully aligned with the new regime.