Kenya Revenue Authority wishes to clarify that with effect from 1st September 2018, VAT is chargeable on all petroleum products at a rate of 16% of transaction value.
The charge is in accordance with the VAT Act, 2013 which deferred implementation for three (3) years up to September 2016, with a further two (2) year extension being granted under Finance Act, 2016. Consequently, VAT charge on petroleum products came into effect on 1st September 2018, in accordance with the relevant legal provisions.
In line with this, players within the petroleum industry are required to charge and account for VAT in accordance with the provisions of the VAT and Tax Procedures Acts.
Specifically, parties involved in the following petroleum supply chain activities are required to take note of the new requirements:
- Oil Importers
- Depot Operators
- Distributors/Oil Marketers
- Retailers including Service Stations
We wish to further clarify that VAT is applicable to all transactions with effect from 1st September 2018, including on the sale of existing petroleum stocks.
KRA has instituted measures to support oil industry players in complying with the law. We have also engaged the Energy Regulatory Commission in order to ensure
coordinated action by relevant Government agencies.
Those wishing to seek further assistance should direct their queries through the following contact persons:
- Caxton Ngeywo: Tel: 020 281 7089 or 0729 888 438; Email: firstname.lastname@example.org
- Hadi Abdullahi: Tel: 020 281 2186 or 0723 658 444; Email: email@example.com
- Contact Centre: Tel 020 4 999 999, 0711 099 999 or Email firstname.lastname@example.org
Commissioner General, Kenya Revenue Authority
Taxpayers are notified that KRA will not accept responsibility for payments not received, credited and validated in the relevant Kenya Revenue Authority accounts Contact Centre: +254 (020) 4 999 999, +254 (0711) 099 999, Email: email@example.com Complaints & Information Center: +254 (0) 20 281 7700 (Hotline),Email: firstname.lastname@example.org