Automated Verification of VAT Returns

PUBLIC NOTICES 07/01/2019

After taking into consideration issues raised by taxpayers, Kenya Revenue Authority wishes to inform the public of its plan to continue with verification of VAT returns using its automated returns verification module in the iTax System. The exercise will cover the period January 2018 to date.

Taxpayers are therefore reminded to ensure that entries in VAT returns reflect a true and correct position of a taxpayer?s business transactions for the tax period. In the case of inconsistencies, the purchase invoices that do not match the sales invoices shall be disallowed.

In order to ensure accurate declarations, all taxpayers are reminded to ensure the following:

  1. Purchase invoices used for input claims should be valid and the amount thereon be correctly claimed as provided under section 17 of VAT Act 2013.
  2. Sales made to taxpayers registered for VAT are declared in the detailed format prescribed in the online VAT return.
  3. Only sales to taxpayers not registered for VAT should be lumped in the last row of the ?Sales? section of the VAT return in the iTax system.
  4. The invoice details are correctly captured including the Invoice Number, Date of Invoice, PIN of Purchaser or seller, and the amount of Invoice.

The Commissioner will issue notices of inconsistencies to the affected taxpayers who shall be given a total of 30 days to rectify the inconsistencies after which assessments will be issued for any unresolved inconsistencies.

Taxpayers who need assistance in relation to this exercise may seek support through KRA nationwide taxpayer support arrangement outlined in this notice.

For support or clarification please contact the Contact Centre on Tel. Number: 020 4999999; 0711 099999 or E-Mail address callcentre@ kra.go.ke. You may also visit the nearest KRA Office, iTax Support Centre or Huduma Centre.