Taxes

Zoho Checkout lets you stay compliant with Kenyan tax regulations across all your payment pages. Learn to enable, associate and manage VAT in your organization.

Enable Value Added Tax

In Kenya, Value Added Tax (VAT) is a consumption tax administered by the Kenya Revenue Authority (KRA) on the supply of taxable goods and services. To ensure your business remains compliant follow these steps to enable and configure VAT in your organization:

• Go to Settings and select VAT.

• Beside VAT Registration check the option Is your business registered for VAT?

• Enter the following details:

• VAT Registration Number Label: Enter the display name for your tax ID.

• VAT Registration Number: Enter the unique 11-character alphanumeric code issued by the Kenya Revenue Authority (KRA). This serves as your official tax identity.

• International trade: If you trade outside of Kenya enable this option.

• VAT Registered On: Choose the date on which VAT was registered**.**

• Click Save.

You will have enabled VAT in your organization.

VAT Rates

Once you enable VAT in your organization, the default tax rates will be pre-populated based on the tax slabs prescribed by the Kenyan Government. The rates are:

• Standard Rate (16%): Select this rate when the product or service is subject to Kenya’s VAT.
• Zero-Rated (0%): Select this option for taxable supplies that are charged at 0% VAT, such as exports and specific essential goods.
• Exempt: Choose this option for supplies that are exempt from VAT under Kenyan tax law.

VAT Rules

Tax rules in Zoho Checkout are a specified set of criteria that determine which VAT rates should be applied to transactions based on the tax regulations set by the Kenya Revenue Authority (KRA). These rules are pre-populated and cannot be edited or deleted.

Configuring Tax Rules in your Payment Pages

You can configure VAT for goods and services while creating or editing a payment page. Here’s how:

• Go to Payment Pages.

• Create a new payment page or click Edit next to an existing one.

• Enter HS code under Product Details.

• Navigate to Tax Information under Configure Page.

• Choose your Tax Rule preference.

• Click Save & Publish.

Now, the taxes configured will be applied to the payment page you’ve created.

Mark a Tax Rule as Default

For the payment pages where tax rules are not specified the default tax rule will be applied. To mark a tax rule as default:

• Go to Settings and select VAT.
• Navigate to Tax Rules.
• Hover over a rule and select Mark as Default.

You will have set a default VAT rule for your payment pages.