Understanding VAT Withholding Agents in Kenya: Key Points and Implications for Suppliers

• KRA appoints VAT withholding agents in Kenya
• Agents withhold 2% of total amount payable to suppliers
• Example: if item sold for Sh. 116, agent pays Sh. 114 to supplier, withholds Sh. 2 as VAT
• Supplier remains liable for full Sh. 16 in VAT, can claim withheld amount when agent remits to KRA
• Withholding agents must remit withheld VAT to Commissioner by 20th day of following month
• Excess VAT withheld can be applied against future VAT payable or refunded to supplier

Source: taxdon.co.ke

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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