Purchase of Taxable Goods (Kenya)

Under VAT Act, different VAT Rates are defined for taxable goods.

Example of goods falling under different tax rates:

16% - Computers, Printers, Scanners, etc.

12%-  Diesel oil, Electrical energy, etc.

Purchases at 16%

Go to Gateway of Tally > Accounting Vouchers > F9: Purchases

1. Enter the Supplier Invoice Number and Date.

2. Select the Party’s A/c Name from the List of Ledger Accounts.

3. Select the Purchase Ledger with the VAT/Tax class - Purchases @ 16%.

4. In VAT/Tax Class field the tax class selected in Purchase Ledger will be displayed.

5. Select the Name of Item taxable @ 16%. Enter the Quantity and Rate. The amount is automatically displayed in the Amount field.

6. Select the Input VAT ledger with the VAT/Tax class - Input VAT @ 16% from the List of Ledger Accounts.

7. In Brief Desc for VAT field, enter the brief description of the goods being purchased.

Note: The brief description entered about the stock will be captured in (F)Brief Description of Supply Box in VAT Annexure.

8. Set the field Show Statutory Details to Yes.

9. The Statutory Details screen displays as shown:

10. Accept the Statutory Details screen and the Purchase Invoice.

Note: The assessable value of purchases made using taxable VAT/Tax classification - Purchases @ 16% is captured in box 6 - TAXABLE PURCHASES (GENERAL RATE)(in Value EXCL. VAT) of Form VAT 3. The input tax paid on taxable purchases is captured in box 6(VAT Charged).

Purchases at 12%

Purchases made at 12% VAT is displayed as shown:

Note: The assessable value of purchases made using taxable VAT/Tax classification - Purchases @ 12% is captured in box 7 - TAXABLE PURCHASES (OTHER RATES)(under Value EXCL. VAT) of Form VAT 3. The input tax paid on taxable purchases is captured in box 6(VAT Charged).