KRA asks traders for monthly buyer details
All purchasers must also provide their KRA Personal Identification Numbers to sellers, says KRA’s Benson Korongo
KENYA Revenue Authority wants traders to declare PIN details of all registered taxpayers that they trade with and submit the same to the authority monthly, in a bid to nab cheats.
In a statement, the taxman urged traders to be making monthly submissions by 20th of every month through the iTax system.
Commissioner for domestic tax Benson Korongo said all purchasers must also provide their KRA Personal Identification Numbers to sellers and advise them to declare the same in their Value Added Tax returns, especially if they wish to declare the same as input tax.
“Sellers are cautioned to declare sales in their provided sections...It is important for traders to ensure that a proper tax invoice is issued for all sales and purchases made,” Korongo said.
The tax agency said the move is targeted at helping it verify the input tax claimed by buyers.
VAT is levied on nearly all goods and services sold in the country at a rate of 16 per cent.
Business purchasers are however able to offset the VAT they have paid on their purchases (input VAT) against their output VAT liability on their sales.
The authority has accused some traders of evading VAT by failing to register for the tax, under-reporting sales or reducing tax payments through misclassifying sales to a lower rate of tax where different goods are subject to tax at different rates.
KRA collected a total of Sh174,051 million as VAT domestic in the 20152016 financial year.
It urged traders to begin complying with the instructions to avoid having to go through audits and investigations to recover unpaid dues, which it said are complex, costly and time consuming to businesses.
Traders on the other hand have long complained of delayed VAT returns which they said have affected cashflows of their businesses and hampered growth.
KRA commissioner general John Njiraini at a media briefing in Nairobi on July 27.