Who is required to registers for VAT in Kenya?
Any person expecting to supply taxable goods or services with a value of KSh. 5 Million.
The law provides for voluntary registration where the threshold is below Ksh.5 Million.
Input and Output Tax
i. Input tax is VAT charged on purchases of taxable supplies and expenses for business purposes.
ii. Output tax refers to the VAT charged on the sales of taxable goods or services.
Tax payable is the difference between the Output tax and the Input tax:
Output Tax – Input Tax = Tax Payable
Exempt supplies are not taxable.
Zero rated supplies : the supplier is entitled to Input tax deduction
Do suppliers of Exempt and Zero rates supplies required to file returns?
Yes,
In the case of Exempt, the supplier must enter a valid Exemption Certificate Number when filing returns.
