What this page is for
A tax class says how an item is taxed and at what rate, such as Standard at 16 per cent, Exempt or Zero rated. The list shows each class with its code, name, treatment, the rate in force now and its KRA (Kenya Revenue Authority) code. A rate marked from KRA is kept in step with KRA's own list of rates.
Everyone who can view tax can open the list and a class. Changing a class, switching rate-following and adding a rate need a role that can manage tax.
Press a row to open the class. There you can change its name and whether tax paid on purchases can be claimed back, choose whether it follows KRA's rate, and read its rate history.
Name
The name staff and customers see for the class. The code cannot be changed.
Tax paid on purchases can be claimed back
Tick this if the tax you pay suppliers for items in this class can be claimed back from KRA.
Follow KRA's rate
On by default. While it is on, the class takes its rate from KRA's list. Each night at 03:30 the rate is replaced with KRA's, so a rate you type yourself on a class that follows KRA is overwritten.
Turning it off asks you to confirm, because from then on the class keeps the rate you set. If the rate you keep differs from KRA's, a warning shows both rates: KRA may refuse sales, or the business may charge the wrong tax. Turning it on again does not change the rate at once; KRA's rate is applied at the next nightly update. Every change is recorded in the audit trail.
How to…
How to add a rate
- Open the class and press Add a rate.
- Type the rate as a percentage, such as 16, and the date it applies from. A reference, such as a KRA notice, is optional.
- Press Save rate. The previous rate ends the moment the new one starts, and the rate history shows both.
How to keep your own rate on a class
Turn Follow KRA's rate off and confirm, then add the rate you want. Do this only when you are sure; KRA expects the rates on its list.
Worked examples
Restaurant and bar
The Acacia Grill & Bar leaves every class following KRA. When KRA changes the rate on class B, the class shows the new rate the next morning.
Supermarket
Tumaini Supermarket sells one item under a special arrangement, so it turns off following on that class, confirms, and adds its agreed rate from the first of next month.