Personal Identification Number (PIN) is a number that identifies a person for purposes of transacting business with Kenya Revenue Authority, other government agencies and service providers. It is processed by Domestic Tax Department. Personal includes both an individual as well as an artificial person (for example, company, club, Trust, etc.)

In TallyPrime, PIN can be specified in F11 (Features) > set Enable Value Added Tax (VAT) to Yes.

Device number is the unique number given to the approved tax registers and other devices that have fiscal memory to issue sales documents. This provides a reliable means for the authority to check the total sales and tax payable by individual taxpayer.

The type of devices supported in TallyPrime for Kenya region are:

• EFP – Electronic Fiscal Printer
• ESD – Electronic Signature Devices
• ETR – Electronic Tax Register

In TallyPrime, Device Number can be specified in F11 > Statutory & Taxation Feature > By enabling VAT.

You can configure multiple devices for a single company for Kenya in Release 5 by enabling the option Set multiple device details?

To enable multiple devices for a company

1. Go to Gateway of Tally > F11: Features > Set Enable Value Added Tax (VAT) to Yes.
2. Click F12: Configure.
3. Enable the option Set multiple device details?
4. Press Enter.
5. Enable the option Set device details?
6. Select the Types of Device and enter the Device Number for each device.
7. Press Ctrl+A to save.

TallyPrime provides the flexibility to configure a separate device for each voucher type to help in faster data entry. This is possible in case multiple devices are enabled and configured for the company.

When there are multiple devices enabled, and device type and device numbers configured in Device Details screen. The device type configured already can be selected in the Types of Device field of Voucher Type Creation or Voucher Type Alteration screen.

To configure Device details in Sales & Credit note voucher types

1. Go to Gateway of Tally > Alter > Voucher Types > Sales or Credit Note voucher type.
2. Select the Type of Device from the Device Name list.
3. Press Enter to save the voucher type.

Withheld tax is a system that involves the declaration of VAT by both the supplier and the customer who has been appointed as a withholding VAT agent. Institutions appointed as withholding VAT agents are Government institutions, parastatals, banks, financial institutions, co-operative societies, insurance companies, and regular exporters.

When a taxpayer (trader) supplies and invoices an appointed withholding VAT agent the payment for supply is made less VAT charged or that which ought to have been charged. The agent withholds VAT irrespective of whether the supplier is registered for VAT or not. The agent issues a withholding VAT certificate to the supplier indicating the VAT withheld. This certificate entitles the trader to claim back the withheld VAT to avoid double taxation since the same tax is declared and paid by the trader through a VAT 3 return. Withholding VAT on taxable supplies not charged VAT is computed using the formula X – X/1.16 where X is the total value of the invoice or taxable supplies.

The type of goods available for Kenya are Goods and Services.

The different types of tax rate categories are 16%, zero-rated, and exempt. The tax rate category of 16% is mandatory for generating returns.

No, it is not necessary to specify Description of VAT during entry. A user can capture it in Commodity details while configuring the Masters. The same will be pre-filled in the voucher. (If multiple commodities are selected in a voucher, details of commodity with highest quantity is filled). The auto-filled description can be altered by enabling the option Allow modification of Brief Description of VAT in Voucher Configuration screen.

Description of VAT need not be specified during entry.

User can capture it in Commodity details while configuring the Masters. The same will be pre-filled in the voucher (if multiple commodities are selected in a voucher, details of commodity with highest quantity is filled). The auto filled description can be altered by enabling the option Allow modification of Brief Description of VAT in Voucher Configuration screen.

TallyPrime provides the option to export VAT return details for a specific period to the excel template provided by the revenue department. The VAT Form – 3 excel template provided for filing returns has provision to capture details of all VAT annexures in specific sheets of the excel file. When VAT Form – 3 is saved and exported, information related to all annexures is also exported to the same file.

To generate e-Returns

1. Go to Gateway of Tally > Display More Reports > Statutory Reports > VAT > VAT Form-3.
2. Press Alt+S to make the tax payment.
3. Provide details to make VAT payment and save the Payment transaction.
4. Once after making payment, transaction will be captured under Payment Details menu > press Enter on Tax Payment (not include/uncertain) > clear the exception by providing other details.
5. Here click on Alt+S (Update Details) to Set Details.

   Note: User need to export the details to Excel Templates once after saving the Returns.

6. Ensure that the new VAT template is available in the TallyPrime folder. You need to download this from https://www.kra.go.ke/en/ )
7. Go to the VAT report and click Alt+E (Export) > E-Return. Then it will ask to check for rows to be added before exporting the data to template.
8. Add the rows in the template, and then export the data. After export, data will be updated in respective sheets.
9. After successful export, click on YES to replace value to the existing Template.
   Then automatically the VAT template will open, and you need to click Enable Content to validate.
10. After successful validation, the message Generating Upload File? appears. Click Yes to process further.
    The file is converted to compressed format (ZIP) and shows the path where it is saved.
11. Upload this ZIP file to the portal https://www.kra.go.ke/en/.
12. After this, follow the instructions on the portal.
13. Click on Submit to complete the process.