KRA asks traders for monthly buyer de­tails

All pur­chasers must also pro­vide their KRA Per­sonal Iden­ti­fi­ca­tion Num­bers to sell­ers, says KRA’s Ben­son Korongo

The Star (Kenya) - - News Business - BY MERCY GAKII

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.

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