How To file KRA VAT Monthly Returns.
Filling of monthly VAT returns is a mandatory by law.This applies for all those goods and services which VAT is charged.If your business charges for VAT then you are mandated to file returns.
Acquire an ETR machine.
Acquiring an ETR machine should be the first thing your business should do.An ETR machine cost on average twenty five thousand shillings.However having it approved by KRA is another step that should not be missed.Having an ETR machine which is not approved by KRA can land you in lots of trouble.
2. Register PIN on iTAX.
You have to have your PIN registered on iTAX.This is a new platform in the KRA platform.Your PIN should have an obligation for VAT.The VAT obligation should be active in your PIN.To access KRA portal.click here
3. Process Receipts
When doing business insist that you be serviced with a receipt from the ETR machine.This applies both ways.When also selling your product or service.Provide your clients with an ETR receipt.This comes in handy when filling the VAT returns as the difference is what you pay for.
4. File the VAT returns
After having both receipts for purchases and sales.The difference between these two will amount to the VAT for that month.
5. Pay to the Bank.
When you have VAT due pay to the bank before the 20th day of the preceding month.Failure to which there is a penalty of 10,000/ for every month.
These are very simple steps to which you can easily follow.For those who want help in filling monthly returns consult us.