How to pay VAT returns through M-Pesa

Paying taxes is mandatory in most countries, failure to which will lead to penalties from the authority responsible for collecting taxes. In Kenya, tax is paid to the Kenya Revenue Authority (KRA). To help make tax payment easier and more efficient, KRA came up with an M-Pesa pay bill number through which one can pay VAT returns through M-Pesa.

KRA decided to come up with the pay bill due to the popular use of the M-Pesa platform in the country. The ease and convenience M-Pesa offers especially to the unbanked members of the public make it a go-to option for transactions. The option has been very helpful and we will go through the process of paying your tax via M-Pesa step-by-step.

How to generate KRA tax return payment slip

To begin, you will require a payment slip. The payment slip contains information that you will require when actually paying the tax. To get the payment slip, you will follow the following steps.

1. Log in to the KRA portal through the website itax.kra.go.ke
2. Follow the procedures by filling in your KRA pin and password to access your portal.
3. Once you’ve successfully accessed your portal, click on the payment icon and select payment registration.
4. Click next then click OK.
5. Select the tax head, payment type, and tax subhead. This is basically information on the type of tax you are paying,
6. Next, select the tax period you are paying and click on submit.
7. Next, you will click on the unmarked circular checkbox next to the summary of the tax you are to pay. Click add.
8. On the mode of payment, select cash, and on receiving bank select Mpayment.
9. Click on submit and download the payment slip.

You now have the payment slip that you’ll use when paying the amount via M-Pesa. Now let’s make the payment.

How to make VAT payment via M-Pesa

1. First, open your Safaricom app or M-Pesa app, or Safaricom sim toolkit.
2. Click on Lipa na M-Pesa.
3. Click on Pay bill.
4. On the business number, type in 572572, as it is the official pay bill business number for KRA. Press OK.
5. Click on account number.
6. Here is where the payment slip comes into use. The account number to input will be the payment registration number as seen in the payment slip. The number should be located just above the bar code at the top right corner of the slip. Input the numbers and press OK.
7. Type in the amount as in the payment slip and press OK.
8. Type in your M-Pesa pin and press OK.

Once you have finished, you will receive a confirmation text message from KRA with the details of your payment. M-Pesa will also send you a confirmation message regarding your payment.

You have now completed the process and successfully paid your returns all from the comfort of your home, workplace, school, or wherever you may be.

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