- KRA reports a significant rise in VAT fraud involving nil and non-filers, losing Sh13 billion in revenue from April 2024 to July 2025
- Fraud linked to the Missing Trader scheme, where companies issue compliant invoices but do not remit VAT
- 10,771 taxpayers claimed purchases worth Sh29.8 billion from 2,750 nil or non-filing entities, causing a Sh4.7 billion VAT shortfall
- Traders issued invoices worth Sh35 billion, leading to Sh5.6 billion in unremitted VAT
- 120 new VAT registrants transmitted sales worth Sh11.5 billion without filing returns or remitting VAT, resulting in a Sh1.8 billion loss
- Fraudsters use stolen identities to register new companies for VAT evasion
- KRA uses the VAT Special Table, an enforcement tool, to target non-compliant behaviors
- Over 101,000 taxpayers are on the Special Table, with some remaining for over two years, but the designation is not permanent
Source: standardmedia.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.
