KRA Directs VAT Registered Taxpayers to Verify Pre-filled November Returns

The Kenya Revenue Authority (KRA) has advised Kenyans registered as Value Added Tax (VAT) taxpayers to confirm the accuracy of their pre-filled November returns ahead of the December 20 deadline.

KRA, in a notice issued on December 3, also directed the taxpayers to process their electronic tax invoices and transmit them to the revenue collector as required by the law.

VAT is an indirect tax levied on each stage of the supply chain, from production to distribution of goods and services including commodities imported into the country.

Any person supplying or who expects to supply taxable goods and taxable services with a value of Ksh5 million or more in a year is required to register for VAT. 

According to KRA, VAT is due on or before the 20th day of the following month. This includes both the return and payment. Returns are submitted online via iTax.

The filing of VAT returns includes both resident and non-resident persons who supply goods and services in Kenya over the Internet or through a digital marketplace. 

Meanwhile, KRA in its latest notice said that any VAT returns that are not validated through the electronic tax invoice system or against existing customs import declarations would not be allowed for deduction.

In its announcement, the Authority disclosed that it had simplified the VAT returns filing process to ensure taxpayers seamlessly submit their monthly returns.

While underscoring the significance of filing the VAT returns on time, KRA expressed its commitment to sensitising taxpayers and facilitating compliance with the electronic tax invoicing requirements.

“KRA wishes to notify all VAT registered Taxpayers that to simplify the VAT return filing process, the VAT return will be pre-filled with tax information available to KRA starting from the November 2024 tax period,” KRA stated.

VAT-registered people are required to maintain proper records to support all transactions. These records can be maintained electronically for easy access.

In the case where a taxpayer inputs excess tax, the funds are carried forward and deducted in the subsequent tax period or may be refunded to the taxpayer.