- The Finance Act 2025 introduces key changes to Kenya’s VAT system, focusing on the refund process.
- The time frame for lodging VAT refund claims is reduced from 24 months to 12 months.
- Processing time for VAT refunds is increased from 90 days to 120 days.
- These changes aim to align with international standards and improve the business environment.
- Efficient VAT systems globally are characterized by quick processing, digital infrastructure, and transparency.
- Faster VAT refunds improve business liquidity and support economic growth.
- Successful implementation requires accurate record keeping and timely documentation submission by businesses.
- Government investment in infrastructure and automation is necessary to facilitate quick processing.
- Advanced economies use automated processing and risk-based assessments to reduce fraud and improve transparency.
- Kenya can benefit by adopting similar technologies to streamline the VAT refund process.
Source: deloitte.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.
