KRA Gives Notice To Online Businesses Evading Taxation

Kenya Revenue Authority (KRA) has issued a notice urging local online traders to pay taxes as required by law.

In the notice published on local dailies, KRA urged the businesses to comply with the law, but did not give possible consequences.

“KRA has noted that some taxpayers engage in online business and they do not file returns or pay taxes on the transactions. KRA would like to advise that unless income or supply is expressly exempt in the law, appropriate taxes should be paid,” read the notice in part.

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KRA requires traders with an annual taxable turnover above Ksh5 million to register for VAT obligation and charge tax while traders whose turnover is below KSh5 million pay presumptive tax.

The government body has organized a training session for all online traders to learn about tax compliance and to get help in declaring taxes.