The Kenya Revenue Authority (KRA) has made it known that from tomorrow; Thursday the 10th of June 2021, it will be freezing a total of 66,269 pins, essentially making them dormant. The 66,269 pins are for tax payers who have consistently failed to file their tax returns with the Kenya Revenue Authority (KRA).
The owners of the affected pins which include business entities as well as individuals will also have their Value Added Tax (VAT) cancelled and subsequently by de-registered
All affected tax payers will at the same time not be allowed to charge Value Added Tax (VAT) on their supplies. They will also not be able to carry out any inputting of Value Added Tax (VAT) claims on their supplies.
The Kenya Revenue Authority (KRA) made it known via a public notice that, “Deregistering or cancelling of VAT obligations is a continuous excise and will affect taxpayers who perennially fail to file their VAT monthly returns or those who persistently file nil VAT returns, among others.”
It added that “All VAT registered taxpayers are therefore advised to comply with their tax obligations to avoid deregistration or other punitive enforcement measures as provided in the tax statutes.”
All tax payers who get de-registered will however not be grab the d any immunity from any of their previous tax obligations. According to the Kenya Revenue Authority (KRA), “Deregistred taxpayers will remain liable for any acts done or omitted while they were registered for VAT obligation. Taxpayers whose VAT obligations are cancelled are reminded that charging VAT without an active VAT registration is an offence.”
While all de-registered tax payers will keep their Kenya Revenue Authority (KRA) pins, they will not be able to carry out any transactions with the accreditations which will be frozen.
How informative was this article? Are there any other news topics, categories, or How To topics, that you would like us to write on? Feel free to reach out to Mpesa Pay in the comment section.
