Prepare the VAT return

Tax has “Worksheets and schedules for filing VAT, withholding and turnover tax on iTax. Kila does not file returns; you or your accountant file them.” The VAT return worksheet adds up the month’s output VAT on sales and the input VAT you can claim on purchases, and checks both against the books.

Not available yet

eTIMS is in test mode. Tax says: “Kila is not connected to KRA yet. Sales receipts say “eTIMS test mode - not a valid fiscal receipt”. Have a tax professional review these worksheets and your tax settings before you rely on them.” Checks of a supplier’s eTIMS invoice go to Kila’s test service, not to KRA.

Steps

1. Open Tax

   Go to Money › Tax. It opens on the VAT return.

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   Steps 2 and 3.

   

2. Choose the month

   Month starts on last month, the one you file now. The VAT is due “by the 20th of the month after” it.

3. Read the four figures

   Output VAT on sales, Input VAT you can claim, Withholding VAT credits and VAT to pay. Under the input VAT, Kila says how much more “is in the books but not claimable yet”. Against the books compares the worksheet with “VAT output (2100) and VAT input (1300) for the same entity and month.”

4. Find the purchases you cannot claim yet

   Under Purchases and input VAT: “Input VAT is claimable with the supplier’s KRA PIN and an eTIMS invoice number.” Each purchase says Claimable, or why not, such as Not claimable: no valid supplier KRA PIN and no eTIMS invoice number.

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5. Record the supplier's eTIMS invoice

   Tap the purchase’s number to open it. Its eTIMS panel says “The supplier’s eTIMS invoice backs this purchase as an expense and its VAT as input VAT.” Tap Record eTIMS invoice and type the eTIMS invoice number, “As printed, like KRACU0300003796/157”.

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   Steps 5 to 7.

   

6. Add the supplier's KRA PIN

   Type the Supplier KRA PIN from the invoice, and the Invoice date.

7. Tap Save

   Kila says eTIMS details saved, and the panel says eTIMS invoice recorded. Check with eTIMS checks it; in test mode the panel then says “Checked in eTIMS test mode only (KRA was not asked)”. Back on the worksheet, the purchase is Claimable.

8. Download the iTax schedules

   Tap Sales schedule (iTax) and Purchases schedule (iTax). Each downloads a CSV file for the month, for the VAT return on iTax.

9. File the return on iTax, then mark it filed

   File it on iTax. Then, on Filing calendar, tap Mark filed on the return and type the iTax acknowledgement number and the day it was Filed on: “Mark a return filed once it is on iTax.”

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   Steps 9 and 10.

   

10. Tap Mark filed

    The return then shows Filed, with the day it was filed.

What if

The worksheet and the books differ

Kila shows:

The worksheet and the books differ

Supplier invoices approved in another month, VAT on package bills and journals posted by hand are the usual reasons.

Open Against the books to see which side differs, then check those records with your accountant.

Sales have test-mode numbers

While eTIMS is in test mode, Kila warns, for example, “92 sales have eTIMS test-mode numbers, not KRA control unit numbers. The schedule uses Kila’s own invoice numbers for them.”

Needs a manager

The Filing calendar reminds the owner and administrators before each return is due. Rates and registrations are under Tax settings: “Have each one reviewed by a tax professional.”

Related

• Record an expense: an expense’s VAT and its eTIMS panel.
• Close a month: purchases without eTIMS support are listed when a month closes.
• eTIMS: what Kila does with KRA today.

Next: with the return filed, close the month.