A self-assessment is a tax assessment prepared and submitted by a taxpayer based on their own calculation of tax liability while default assessment is an assessment made by the Commissioner when a taxpayer fails to submit a tax return by the prescribed due date.
A zero-rated supply is a taxable supply that attracts VAT at 0%. For example, if a manufacturer purchases raw materials and incurs VAT of KSh 100,000 while producing a zero-rated product, the manufacturer can claim or recover that VAT from KRA.
The Kenya Revenue Authority (KRA) has temporarily suspended the filing of nil tax returns until March 30th this year(2026) to allow for data validation and improved compliance checks, a move that aims to reduce under-reporting by people who technically earn taxable income but still file nil returns.
