If you run a business in Kenya or Ghana, you know how important it is to include VAT in invoices properly. For many small businesses, freelancers, and startups, value-added tax (VAT) can feel confusing — yet it’s a legal requirement for registered entities.
The good news? You don’t need to be a tax expert to stay compliant. ProInvoice helps you include VAT in invoices easily, ensuring every invoice you send meets local tax standards while still looking professional.
In this guide, we’ll explain what VAT is, why it matters, and how to apply it correctly using ProInvoice.
Click to download the Proinvoice mobile app now to manage your invoices anytime, anywhere with ease!
What Is VAT and Why It Matters
VAT (Value Added Tax) is a consumption tax added to most goods and services. It’s charged by businesses on behalf of the government and must appear clearly on all taxable invoices.
- In Kenya, the VAT rate is typically 16 % (per KRA).
- In Ghana, VAT is 15 %, plus other levies that bring the effective rate slightly higher for some goods and services.
When you include VAT in invoices, you:
- Stay compliant with tax laws.
- Avoid penalties or audits.
- Build trust with clients and corporate partners.
- Present a professional, legally recognized document.
Why Businesses Must Include VAT in Invoices
Many freelancers and SMEs forget or ignore VAT because they assume it only affects large companies. However, if your turnover passes the local VAT registration threshold, it’s mandatory.
Kenya: Registration is required once your annual sales reach 5 million KES.
Ghana: The threshold is about 200,000 GHS in taxable supplies.
Failing to include VAT in invoices can lead to:
- Non-compliance fines.
- Loss of corporate clients who need tax-compliant documents.
- Incorrect financial records and delayed payments.
With ProInvoice, you can automate this entire process so each invoice you create meets regulatory requirements in both Kenya and Ghana.
How ProInvoice Simplifies VAT Invoicing
Instead of doing manual math or formatting errors in Excel, ProInvoice does the heavy lifting for you.
Here’s how it works:
- Add VAT Option:
When you create an invoice, you can toggle “Include VAT” and enter the rate (16 % for Kenya or 15 % for Ghana). - Automatic Calculation:
The platform instantly calculates the VAT amount and adds it to the invoice total. - Clear Display:
VAT is shown as a separate line item so clients see the net and gross amounts clearly. - Professional PDF Format:
All invoices are exported with your logo and a professional layout that meets tax standards. - Secure Recordkeeping:
ProInvoice stores a digital copy of each VAT invoice for reporting and audit purposes.
Structure of a VAT-Compliant Invoice
Whether you’re a freelancer in Nairobi or an SME in Accra, a VAT-compliant invoice must include the following details:
| Section | What It Should Include |
|---|---|
| Seller Details | Business name, VAT number, address, and contact info. |
| Buyer Details | Client name and address (if business, include VAT number). |
| Unique Invoice Number | Sequential for traceability. |
| Date of Issue | When the invoice was created. |
| Description of Goods/Services | Clear item list with quantities and unit price. |
| Subtotal | Amount before VAT. |
| VAT Amount | Calculated tax rate (16 % or 15 %). |
| Total Due | Subtotal + VAT. |
| Payment Terms | Bank details or mobile money instructions. |
With ProInvoice, all these sections are pre-formatted, so you never forget a detail.
Example: How to Include VAT in Invoices
Let’s look at a realistic example for clarity.
Scenario:
You’re a freelance web designer in Nairobi charging KES 50,000 for a project.
VAT rate = 16 %.
Invoice Summary:
- Subtotal: KES 50,000
- VAT (16 %): KES 8,000
- Total Due: KES 58,000
ProInvoice automatically shows:
“Total VAT (16 %) = KES 8,000” under the subtotal, then a bold grand total below.
The same applies for a Ghanaian freelancer charging 1,000 GHS at 15 % VAT:
- Subtotal = GHS 1,000
- VAT (15 %) = GHS 150
- Total = GHS 1,150
Clear, professional, and fully compliant.
Benefits of Including VAT in Invoices with ProInvoice
- Legal Compliance
Avoid penalties by meeting local tax requirements automatically. - Client Trust
VAT-compliant invoices build credibility with corporate clients and government agencies. - Accuracy and Automation
Eliminate manual errors — the system does the math instantly. - Professional Presentation
Every ProInvoice document looks clean, organized, and brand-ready. - Time Savings
Create, send, and track invoices within minutes from any device. - Local Currency Support
Automatically use KES or GHS depending on your country settings.
VAT Registration and How to Apply
If you’re not yet registered for VAT in Kenya or Ghana, it’s best to start early.
- Kenya: Apply via the KRA iTax portal and receive a PIN.
- Ghana: Register through the Ghana Revenue Authority (GRA) for a VAT certificate.
Once registered, include your VAT PIN on all ProInvoice documents.
💡 Pro tip: Keep VAT records for at least five years as required by both authorities.
How ProInvoice Supports Freelancers and SMEs
ProInvoice is built for African businesses — easy to use, affordable, and localized.
For Freelancers
Add VAT automatically, track payments, and send PDF receipts instantly.
For Small Businesses
Manage multiple clients, view revenue analytics, and keep organized records for tax filing.
For Accountants
Download reports with VAT totals for monthly or quarterly returns.
Affordable Subscription Plans
While ProInvoice offers a free version, upgrading unlocks premium features like:
- Unlimited invoice creation
- Mobile App access
- Smart payment tracking
- Cloud backup and analytics
The subscription is affordable and delivers great value for freelancers and businesses in Kenya and Ghana.
How to Include VAT in Invoices Using ProInvoice (Quick Guide)
- Sign up on ProInvoice.
- Select New Invoice.
- Add Client Details.
- Enter Items or Services.
- Toggle “Include VAT.” The system calculates automatically.
- Preview and Send via email or WhatsApp.
Done — a fully compliant invoice with VAT included.
Common Mistakes When Adding VAT and How to Avoid Them
| Mistake | Solution with ProInvoice |
|---|---|
| Forgetting to show VAT rate | VAT rate is pre-set and editable. |
| Miscalculating total | Auto calculation eliminates manual errors. |
| Omitting VAT number | Template reminds you to add it. |
| Using old rates | System lets you update instantly. |
Why Kenya and Ghana Trust ProInvoice
ProInvoice is used by thousands of freelancers and small businesses across Africa because it combines simplicity and compliance.
- 🇰🇪 Kenya: Supports KES and M-PESA payment integration.
- 🇬🇭 Ghana: Supports GHS and MTN Mobile Money.
- 💼 Cloud Dashboard: Access from web and mobile.
- 📄 Legally Compliant Templates: Ready for audit and client records.
Conclusion
Including VAT in invoices is not optional — it’s essential for every business that wants to stay compliant and look credible.
With ProInvoice, you can include VAT in invoices accurately and effortlessly. You save time, avoid penalties, and maintain professional records that make clients trust you more.
👉 Create a Free ProInvoice Account
👉 Learn How to Add VAT Automatically
👉 Try the Mobile App
Empower your business in Kenya and Ghana today — send legally compliant, VAT-inclusive invoices that get you paid faster.
