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KRA Warns Businesses Over Unverifiable Input VAT Claims, Promises Stricter Audits and Reforms

  • KRA warns businesses against claiming input VAT without proper proof of payment and will intensify audits.
  • About 9,000 businesses reported Sh39 billion in input VAT between March and April 2025, but many claims were unverifiable.
  • A special review unit has been set up to track suspicious VAT claims and flag questionable suppliers.
  • The crackdown is part of broader tax digitisation reforms, including automating VAT collection via mobile money.
  • KRA assures taxpayers that the new system will improve transparency without accessing their bank or wallet accounts.

Source: capitalfm.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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