KENYA REVENUE AUTHORITY SEPTEMBER 2022
Public Notice
VALIDATION OF INPUT VAT CLAIMS
Kenya Revenue Authority (KRA) would like to inform the general public that there are taxpayers who are issuing
fictitious invoices that are not supported by any supply of goods or services. The intention thereof is to evade tax.
Section 17(2) (b) of the VAT Act, 2013 provides that the deduction for input tax shall not be allowed where there is no corresponding sales declaration by suppliers.
In light of this, KRA wishes to notify VAT registered persons of the changes made in the VAT Return filing process. The changes involve automated disallowance of input VAT at the time of filing returns from identified suppliers who have not declared corresponding sales for the inputs being claimed, with effect from the filling of 1st August, 2013. The affected taxpayers will be notified electronically of the input tax disallowed.
Further, taxpayers are reminded that tax evasion is an offense under section 97 of the Tax Procedures Act (TPA). A person convicted of this offence shall be liable to a fine not exceeding ten million shillings or double the tax evaded, whichever is higher or to imprisonment for a term not exceeding ten years, or to both, under Section 104 (3) of the TPA.
Additional information is available on the KRA website, www.kra.go.ke.
For any further advice or assistance, please visit your nearest Tax Service Office (TSO).