Hospitality Tax & Levy Auditor
Four tax lines decide a Kenyan hospitality month. Enter revenue and declared figures to see the statutory recomputation, the variance and the penalty and interest exposure before a review finds it.
Recompute the month before KRA does
Enter what the property earned and what it declared. The auditor recomputes 16% VAT, the 2% tourism levy, the 10% staff service charge and an optional county bed levy — then prices the variance, the penalty and the monthly interest.
Revenue for the Period
Standard-rated base: KES 1,500,000
Declared Returns
County-specific; confirm the rate with your county finance office. 0% disables the line.
Line-by-line reconciliation
| Tax line | Expected | Declared | Variance | Status |
|---|---|---|---|---|
VAT (16%) on standard-rated supplies Under-declared by 20000 KES (8.33% below the statutory basis). | KES 240,000 | KES 220,000 | KES -20,000 | under-declared |
Tourism levy (2%) on gross tourism sales Tourism levy reconciles to 2% of gross tourism sales. | KES 30,000 | KES 30,000 | — | compliant |
Staff service charge (10%) collected Service charge collected reconciles to 10% of standard-rated sales. | KES 150,000 | KES 150,000 | — | compliant |
County bed levy (0%) on accommodation County bed levy reconciles to the configured county rate. | KES 0 | KES 0 | — | compliant |
Staff service charge
Audit recommendations
- • File an amended return for the period and settle 20000 KES of under-declared tax before the 5% penalty plus 1% monthly interest accrues further.
- • Confirm the county bed levy rate for this property; it is county-specific and defaults to 0% in this model.
Kenyan Hospitality Benchmarks & Compliance Notes
The assumptions behind this engine, written for owners, GMs and revenue managers.
VAT is 16% on the standard-rated base
Accommodation, F&B and conference supplies are standard-rated. VAT payable is output tax less input credits; the audit compares the net figure you declared against the base you earned.
The tourism levy is 2% of gross sales
The Tourism Act 2011 levy applies to gross tourism sales, so conference and events revenue is inside the base. It is a separate line from VAT and is frequently omitted in monthly filings.
The 10% service charge is staff money
Collected on standard-rated sales and distributed to eligible staff. An undistributed balance is a staff liability, not operator income — the auditor tracks it separately from tax exposure.
Frequently Asked Questions
More hospitality engines
Request a quarterly tax reconciliation review
Send three months of revenue and declared returns. The advisory desk returns a line-by-line reconciliation, the exposure under the Tax Procedures Act and a filing checklist for the finance team.