Title When turnover tax was reintroduced early this year, qualifying businesses had to have an annual turnover not exceeding five million shillings. Under the new amendment to Turnover Tax provisions, the new threshold is annual turnover of between one million
Description

Turnover tax (TOT) threshold currently applies to turnover of between Ksh one million and Ksh fifty million but not Ksh 5 million and 50 million as alluded.


There is no contradiction since the TOT & VAT are two different taxes with different threshold requirements.


A TOT taxpayer with a turnover exceeding five million shillings is required to register to charge and account for VAT. This is because, with the new income tax changes in law did not affect VAT registration threshold. Hence, there is no contradiction in the two laws.
Category Tax Laws (Amendment) Act 2020