KRA links iCMS, iTax systems to tighten export VAT compliance

NAIROBI, Kenya, Apr 28 – The Kenya Revenue Authority (KRA) will from May 2026 automatically sync export declarations with Value Added Tax (VAT) returns following the integration of its customs system, iCMS, with the iTax platform.

The move is expected to streamline compliance, reduce manual errors and tighten oversight on zero-rated exports by eliminating the need for exporters to manually input export values in VAT filings.

Under the new system, validated export values will be automatically prefilled in VAT returns once the relevant export documents are issued through customs.

The integration applies to exports within the Single Customs Territory, as well as those destined for foreign markets, Export Processing Zones (EPZs) and Special Economic Zones (SEZs).

KRA says the reform will enhance efficiency for exporters while sealing revenue leakages by ensuring only customs-validated values—linked to an exporter’s Personal Identification Number (PIN) and TIMS/eTIMS zero-rated invoices—are captured in VAT filings.

Exporters and clearing agents will now be required to include the exporter’s PIN and valid TIMS/eTIMS invoice numbers when lodging export documentation in iCMS, creating a digital audit trail between customs and domestic tax systems.

The authority notes that the integration will reduce discrepancies arising from mismatched declarations and improve transparency, particularly for firms trading within regional and special economic frameworks.

The system will also extend to taxable service exports, with iTax automatically generating returns based on transmitted TIMS/eTIMS invoices for the applicable tax period.

While the automation is expected to lower administrative burdens and improve accuracy, exporters may face a short adjustment period as they align their invoicing and customs processes with the new digital requirements.

The reform is part of KRA’s broader push toward data-driven tax administration aimed at improving compliance, expanding the tax base and modernising taxpayer services while supporting Kenya’s export growth.