Why You Can’t Claim Your Input VAT — and How to Fix It
A conversation between Tax expert Eddah Nyamweya, Accountant at Tarra Agility Africa and Wangeci Kanyeki, Small business owner.
Why are so many businesses unable to claim their input VAT on iTax?
The main reason is that their suppliers’ invoices fail ETIMS validation. This usually happens when the supplier isn’t ETIMS-compliant or has been placed on what KRA calls a special table. When that happens, the invoices don’t appear as valid tax invoices on iTax, meaning you can’t claim VAT on them.
Sometimes, it’s also because the supplier is not VAT-registered, or they are not registered for ETIMS/TIMS, so the system simply doesn’t recognize the invoice as valid for input VAT claims.
How to Check If a Supplier Is VAT and ETIMS Compliant before a purchase
- Visit the KRA iTax portal — https://itax.kra.go.ke.
- On the homepage, look for ‘Taxpayer PIN Checker.’
- Enter the supplier’s PIN and click ‘Consult.’
- The system will show the supplier’s tax status.
– If it says VAT Registered, that’s good — they’re authorized to issue VAT invoices.
– Scroll further down, and you’ll see Electronic Tax Invoicing – ETIMS/TIMS.
One of these should say Active, depending on which system the supplier uses.
– Under VAT, it should clearly state VAT Compliant.
If it says VAT Non-Compliant, that means the supplier is currently under a special table — a temporary status that restricts their invoices from being claimable.
What to Do If You’ve Already Bought from a Non-Compliant Supplier
What happens if someone has already bought from a supplier who’s not compliant? Can anything be done to fix it?
it takes a few steps:
- Confirm the issue — check the validation message On your iTax it says (pin is not eligible for input deduction).
- Talk to your supplier — ask them to update their ETIMS registration or clear any issues with KRA.
- Keep all documentation — invoices, LPOs, payment proofs — ready for reference if KRA asks.
Recommendations for Affected Businesses
- Always verify your supplier’s status before purchasing — use the KRA PIN Checker every time.
- Train your procurement and finance teams to understand how ETIMS and VAT compliance works.
- Ask for an Etims invoice before making the payment, if they resist deal with a supplier who issues you an Etims invoice.
- Engage your suppliers — make sure they remain compliant to avoid losing input VAT claims.
- Act early — don’t ignore ETIMS validation errors. Fix them before filing returns.
- If after six months you’re still unable to claim the input VAT, expense it in your books. Attach a screenshot from KRA showing that you’re unable to claim input from that specific supplier — and link it to the affected invoice. This helps support your accounting and audit trail in case of future reviews.
If you are unable to manage your rental compliance on your own, it is always good to speak to an expert like us at ushuru.co.ke Get in touch, and we will be able to help you.
Disclaimer: Any advice in this publication is limited to the conclusions specifically set forth herein and is based on the completeness and accuracy of the stated facts, assumptions and/or representations included. In rendering our advice, we may consider legal authorities that are subject to change, retroactively and/or prospectively, and any such changes could affect the validity of our advice. We will not update our advice for subsequent changes or modifications to the law and regulations, or to the judicial and administrative interpretations thereof.
