# VAT Compliance for Digital Sales in Kenya

> Rules for VAT in Kenya: rates, thresholds, registration, filing expectations, and Dodo Merchant of Record handling.

- **Jurisdiction**: Kenya
- **Tax Type**: VAT
- **Standard Rate**: 16%
- **URL**: https://dodopayments.com/tax/vat-kenya

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## How VAT Applies to Digital Goods

The **standard VAT rate** in Kenya is **16%**.

Kenya introduced a Digital Service Tax (DST) of 1.5% on gross revenues for non-resident digital service providers in 2021, later integrating digital services into the standard VAT framework at 16%. Non-resident providers of digital services to Kenyan consumers must register for VAT through the KRA's iTax portal once their annual turnover from Kenyan customers exceeds KES 5 million.

Kenya defines digital services broadly, including downloadable software, SaaS subscriptions, streaming services, and online marketplace platforms. The country uses a simplified registration process for non-residents, with returns filed monthly by the 20th of the following month.

## Registration Requirements

Non-resident digital service providers must register with **KRA (Kenya Revenue Authority)** using the **KRA PIN** format. Registration should be completed before first taxable sales to Kenya consumers.

## Filing and Compliance

Kenya requires **monthly** VAT filing with KRA (Kenya Revenue Authority). Maintain complete transaction records, tax calculations, and invoices for audit readiness.

## How Dodo Payments Handles This

As Merchant of Record, Dodo Payments calculates Kenya VAT at checkout, collects tax from the customer, generates compliant invoices, and handles remittance -- removing the need for merchants to register or file separately.

## Related Pages

**Section:** [All Tax Guides](https://dodopayments.com/tax)
**See also:** [Kenya](https://dodopayments.com/payments-in/kenya) | [KES](https://dodopayments.com/currency/kes)

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