The Kenya Revenue Authority reminds all registered taxpayers that it is a requirement under the law to make full and accurate disclosures of all taxable transactions. KRA has recently noted an emerging trend where VAT registered taxpayers are reducing their tax liability through falsified input VAT claims which contravenes the VAT Act, 2013 and the Tax Procedures Act.

Registered VAT taxpayers are reminded that falsified return declarations is a criminal offence and shall not be tolerated. To address this, KRA has put structures in place to mitigate and investigate the following VAT fraud incidences:

• Utilization of fictitious invoices.
• Claiming of input taxes from taxpayers not registered for VAT.
• Claiming of input taxes from taxpayers whose PINs are not migrated to the KRA iTax system.
• Claiming of input taxes by one or more taxpayers using the same invoice details.
• PIN theft and subsequent claiming of input taxes from taxpayers one has not traded with.
• Claiming of input taxes for amounts exceeding those transacted.

In view of this, KRA shall be undertaking a review of input tax claims for various tax periods and will take action against any fraudulent cases, which will include prosecution and/or disallowing of the affected invoice claims.

Further, taxpayers are advised to ONLY claim valid inputs in the monthly VAT returns. KRA reminds all registered VAT taxpayers that it is a requirement under the tax laws for them to make a full and accurate disclosure of all their tax transactions when submitting returns or when called upon to do so.

For clarification please call the Contact Centre on Tel: 020 4 999 999, 0711 099 999 or Email: callcentre@kra.go.ke

Commissioner for Domestic Taxes