The Kenya Revenue Authority has announced that starting May 2026, export data from the Integrated Customs Management System (ICMS) will be automatically integrated into VAT returns on iTax, in a move aimed at streamlining tax compliance and improving accuracy for exporters.
According to a public notice published on MyGov on April 28, 2026, the new system will see validated export values automatically prefilled under zero-rated supplies once the relevant export documents are issued by Customs.
“This means that validated export values will be automatically prefilled in the VAT return upon issuance of the relevant export documents by Customs,” the authority said.
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The integration will apply to exports destined for the Single Customs Territory, foreign markets, Export Processing Zones (EPZs), and Special Economic Zones (SEZs). It will also extend to exports of taxable services, which will now be prefilled in iTax based on TIMS/eTIMS invoices generated and transmitted during the relevant tax period.
To ensure accuracy, the tax authority has directed exporters and clearing agents to provide key details during the export process.
“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,” the notice stated.
The Authority added that “only export values validated in ICMS and linked to the exporter’s PIN and invoice will be allowed in the VAT return.”
The move marks a significant shift from the previous system, where exporters were required to manually input export data when filing VAT returns on iTax. This manual process often led to discrepancies between customs records and tax declarations, exposing taxpayers to compliance risks, delayed refunds, and additional verification procedures by the authority.
Under the earlier framework, exporters had to reconcile data from multiple systems—ICMS for customs documentation and iTax for tax filing—creating administrative burdens and increasing the likelihood of errors. The lack of automatic linkage also made it harder for the tax authority to validate claims in real time.
With the new integration, the Kenya Revenue Authority expects improved efficiency, reduced errors, and enhanced transparency in export reporting. The automation is also expected to speed up processing of VAT returns and reduce disputes arising from mismatched data.
The authority has urged taxpayers to comply with the new requirements ahead of implementation, noting that proper data capture will be critical to ensuring seamless prefilling and validation of export transactions under the updated system.
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