Input tax is the VAT a business pays on purchases or importation of goods and services for the purpose of the business.

It is the right of a VAT-registered business to claim back the VAT paid on purchases and imports, as long as those purchases are used to make taxable supplies.

Only VAT-registered businesses can claim input tax deductions.

• You must be VAT-registered.
• The purchase must be for business use in making taxable supplies.
• You must hold a valid electronic tax invoice or customs entry.
• The buyers PIN must be indicated in the electronic tax invoice
• The tax invoice must have been transmitted to KRA
• The seller has declared the sales invoice in their VAT return
• The deduction must be claimed within 6 months from the date of the supply or importation.

• A valid tax invoice from a VAT-registered supplier.
• Import declaration and customs documents (for imports).
• Relevant credit/debit notes where applicable.

No. Input tax cannot be claimed on:

• Purchases not related to the business.
• Purchases in relation to exempt sales.
• Certain restricted items, e.g. passenger cars for personal use and entertainment expenses, unless provided in the ordinary course of the business.

Yes, as long as the VAT was paid and the goods/services are used for taxable business purposes.

Only the business-use portion of VAT can be claimed as input tax.

Yes. If input tax is higher than output tax in a tax period, the excess can be carried forward to the next period.

Yes. If input tax is higher than output tax in a tax period as a result of making zero-rated sales or VAT withheld by appointed tax withholding agents, the taxpayer can apply for a refund. The refund application should be done within 12 months from when the tax became due and payable.