VAT Guide for Transport & Logistics in Kenya

    Transport & Logistics operating in Kenya charge the standard VAT rate of 16% (reduced rates: 0%). Registration becomes mandatory at KES 5,000,000 (~€35,000), returns are filed monthly, and cross-border B2B services are generally reverse-charged to the customer.

    Standard rate16%
    Reduced rates0%
    Registration thresholdKES 5,000,000 (~€35,000)
    Filing frequencyMonthly
    CurrencyKES
    In force since01 Jan 2021
    Last verified01 Sept 2026

    Official source

    Kenya Revenue Authority

    Figure verified on 01 Sept 2026. Every rate on this page is traceable to the authority above.

    Worked examples

    Domestic sale in Kenya

    You invoice a customer based in Kenya for KES 1,000.00 of transport & logistics work.

    Add 16% VAT: KES 160.00. Total invoiced KES 1,160.00, declared in your monthly return.

    Cross-border B2B inside the EU

    A VAT-registered business in another member state buys the same KES 1,000.00 service and supplies a valid VAT number.

    Invoice at 0% under the reverse charge, state "Reverse charge — Article 196 VAT Directive", and report the sale on your EC Sales List.

    Sales to consumers in another EU country

    You sell KES 12,000.00 per year to private customers in other member states.

    Past the €10,000 distance-selling threshold you must apply the destination rate and declare the sales through the One-Stop Shop.

    Late filing exposure

    Your monthly return is filed after the deadline.

    5% penalty for late filing plus 1% interest per month on unpaid tax.

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    Compliance checklist

    • Confirm whether you are above KES 5,000,000 (~€35,000)
    • Register with Kenya Revenue Authority before your first taxable supply
    • Apply 16% on domestic sales and the reverse charge on EU B2B
    • Validate every EU customer VAT number in VIES and keep the proof
    • File monthly and archive invoices for the statutory period
    • Mandatory eTIMS electronic invoicing
    • Digital Services Tax for non-resident providers

    FAQ — Transport & Logistics in Kenya

    When must transport & logistics register for VAT in Kenya?

    Registration is required at KES 5,000,000 (~€35,000). Voluntary registration below that level is possible and usually worthwhile when you buy a lot of taxable inputs, because it lets you reclaim input VAT.

    Which VAT rate applies to transport & logistics in Kenya?

    The standard rate is 16%, with reduced rates of 0% for specific categories. Applied since 2021-01-01, last verified against Kenya Revenue Authority on 2026-09-01.

    How often do I file VAT returns in Kenya?

    Monthly. 5% penalty for late filing plus 1% interest per month on unpaid tax.

    What must appear on an invoice in Kenya?

    Electronic Tax Invoice via eTIMS mandatory. Must include PIN and itemized details.

    Do I charge VAT to business clients in other EU countries?

    No. For B2B services within the EU the reverse charge applies: invoice at 0%, quote both VAT numbers, add the reverse-charge mention and report the transaction on your recapitulative statement. Always validate the customer's VAT number in VIES first.

    What is specific to Kenya for my sector?

    Mandatory eTIMS electronic invoicing · Digital Services Tax for non-resident providers · Zero-rating for exported goods and services

    Go further

    Disclaimer : This tool is provided for informational purposes only and does not constitute professional tax advice. Consult a qualified tax advisor for decisions regarding your tax situation.Source : EU VAT Directive 2006/112/EC

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