Selling Goods Online? KRA Wants You To Submit VAT

The Kenya Revenue Authority (KRA) has directed online businesses to charge value-added tax (VAT) on their transactions and remit the taxes.

This follows the amendment of the Finance Act last year, requiring online business to be included in the tax bracket. However, according to the taxman, most traders have been dodging the taxes, and very few have complied.

“We have noted with concern that some digital business owners had failed to charge VAT as required by law,” said Elizabeth Meyo, the commissioner for domestic taxes.

Read:  KRA Promises Half A Million For Those Who Report Tax Cheats

The charges relate to all sales made on digital platforms and commissions charged to vendors for the use of the platforms.

“All noncompliant traders are hereby advised to comply to avoid penalties and interests on outstanding taxes, failing which appropriate action will be taken in accordance with the law. Where fraud will be detected, appropriate criminal proceedings shall be brought against the offenders,” the commissioner said.

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