- KRA has suspended online VAT registration to eliminate ghost traders exploiting fraudulent schemes.
- VAT registration now requires physical proof of identity to prevent revenue leaks.
- Applicants must visit KRA offices for VAT registration as part of a KYC strategy.
- Previously, VAT registration was done online without visiting KRA offices.
- Rogue traders used stolen IDs to register companies and siphon money through fictitious transactions.
- New guidelines require full compliance with the VAT Act, including proof of a fixed business location.
- VAT is an indirect tax on goods and services consumed or imported in Kenya.
- Businesses with taxable supplies of Sh5 million or more annually must register for VAT.
- Voluntary registration is possible for those below the threshold, subject to conditions.
Source: businessdailyafrica.com
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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