14 March 2016 Update provided on Kenya's withholding VAT system Withholding value added tax (VAT) allows the Kenya Revenue Authority (KRA) to collect VAT in advance from suppliers of taxable supplies. Under the withholding VAT system, KRA appoints selected local entities to be withholding VAT agents. Registered withholding VAT agents are required to withhold 6% of the taxable value at the point of paying the suppliers. The appointment of the withholding VAT agent was previously governed by Section 25A of the VAT Act 2013. Under Legal Notice No. 12, January 19 was set as the date the Tax Procedures Act (TPA) came into operation and deleted Section 25A of the VAT Act. However, while the Tax Procedures Act deleted Section 25A of the VAT Act 2013, it did not set forth similar provisions under the TPA. Document ID: 2016-0495 |
