# Kenya VAT Withholding and WHT Supplier Payment Calculator

> Source: https://netray.co/tools/kenya-vat-withholding-and-wht-supplier-payment-calculator
> Publisher: Netray (netray.co), AI and integration engineering for ERP and manufacturing systems.
> Section: Free Tools

## Short answer

Work out what to pay a Kenyan supplier after VAT withholding and withholding tax, and what you owe KRA on their behalf.

## Category

regional

## Region

Kenya

## Audience

- Accounts payable
- Controller
- Tax manager

## Tool

**Kind:** calculator

**Currency:** KES 

**Inputs:**

#### Invoice value excluding VAT

**Key:** net

**Type:** number

**Default:** 1000000

**Min:** 0

**Step:** 10000

**Unit:** KES

#### VAT rate

**Key:** vat_rate

**Type:** number

**Default:** 16

**Min:** 0

**Max:** 30

**Step:** 0.5

**Unit:** %

**Help:** Standard rate is 16%. Use 0 for zero-rated supplies.

#### VAT withholding rate

**Key:** vatw_rate

**Type:** number

**Default:** 2

**Min:** 0

**Max:** 16

**Step:** 0.5

**Unit:** % of taxable value

**Help:** Withheld by appointed agents on the taxable value. Confirm the current rate and whether you are an appointed agent.

#### Withholding tax rate

**Key:** wht_rate

**Type:** select

**Default:** 5

**Options:**

##### 0% (not subject)

**Value:** 0

##### 3% (contractual fees, resident)

**Value:** 3

##### 5% (management or professional fees, resident)

**Value:** 5

##### 10% (non-resident royalties and similar)

**Value:** 10

##### 20% (non-resident management fees)

**Value:** 20

**Outputs:**

#### VAT on invoice

**Key:** vat

**Expr:** net * vat_rate / 100

**Format:** currency

#### Invoice total including VAT

**Key:** gross

**Expr:** net + vat

**Format:** currency

#### VAT withheld for KRA

**Key:** vat_withheld

**Expr:** net * vatw_rate / 100

**Format:** currency

#### Withholding tax deducted

**Key:** wht

**Expr:** net * wht_rate / 100

**Format:** currency

#### Total remitted to KRA on supplier's behalf

**Key:** total_kra

**Expr:** vat_withheld + wht

**Format:** currency

#### Net payment to supplier

**Key:** pay

**Expr:** gross - vat_withheld - wht

**Format:** currency

**Primary:** true

#### Deductions as share of gross

**Key:** eff

**Expr:** total_kra / gross * 100

**Format:** percent

**Primary:** true

**Chart:**

#### Net payment vs invoice value

**Type:** line

**X:** net

**From:** 100000

**To:** 5000000

**Steps:** 25

**Series:**

- pay
- total_kra

**Disclaimer:** Rates change with each Finance Act and depend on payment type and residency. Verify with KRA or your tax adviser before applying to real payments.

## Content

**Intro:** When a Kenyan business pays a supplier, it may have to hold back part of the VAT and some withholding tax and send both to KRA. This calculator shows the split on a single invoice so accounts payable can check the cash that actually leaves the bank.

**Sections:**

#### How to use it

**Body:** Enter the invoice value without VAT, the VAT rate, the VAT withholding rate and choose the withholding tax category. The calculator returns the VAT, the gross invoice, the amounts to remit to KRA and the net payment to the supplier. The chart sweeps invoice size to show how deductions scale.

#### Two separate deductions

**Body:** VAT withholding applies when the payer has been appointed as a withholding agent. The agent holds back a percentage of the taxable value and remits it, and the supplier claims it against their output VAT using the withholding certificate. Withholding tax is an income tax deduction on certain payments such as professional fees, contractual fees and payments to non-residents. The two are independent and can apply on the same invoice.

#### Worked example

**Body:** On a KES 1,000,000 invoice with 16% VAT, gross is 1,160,000. With 2% VAT withholding (20,000) and 5% WHT (50,000), you remit 70,000 and pay the supplier 1,090,000. Always issue the withholding certificates and file on time, because late remittance carries penalties for the payer.

#### ERP and eTIMS notes

**Body:** In your ERP, model the withholding as separate tax codes and GL accounts, and post them on payment, not on invoice, if your accounting policy requires it. Match the invoice to the eTIMS-issued supplier invoice so the VAT claim is supportable. Check that vendor withholding flags are held on the vendor master.

**Cta:** If your payables run through an ERP and you want a check that every withholding was applied, we can build a read-only exception report.

**Faq:**

#### Who must withhold VAT in Kenya?

**Answer:** Persons appointed as VAT withholding agents by the Commissioner, such as government bodies and certain large taxpayers. If you have not been appointed you do not withhold VAT, so confirm your status with KRA.

#### Is withholding tax the same for every payment?

**Answer:** No. The rate depends on the payment type and whether the payee is resident. Professional fees, contractual fees, rent, royalties and dividends all have different rates, so pick the category that matches the invoice.

#### Can the supplier recover withheld VAT?

**Answer:** Yes. The supplier receives a withholding certificate and uses it as a credit against their VAT liability when they file. Without the certificate the credit can be rejected, so issue it promptly.

#### Why is the rate selector fixed?

**Answer:** The select lists common categories so you do not have to remember them. For special cases, use the nearest value and check the result against KRA guidance, as rates are changed by the annual Finance Act.

## Search terms

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