KRA warns online local businesses over tax evasion

The Kenya Revenue Authority (KRA) has urged online businesses to pay tax and pass on Value Added Tax (VAT) to consumers. The Taxman warned those who will contravene to face serious consequences.

KRA Commissioner for Domestic Taxes Elizabeth Meyo said on a statement that they have noted the failure to pass on the charge on transactions as many more businesses move online under the Covid-19 pandemic.

“KRA wishes to inform such persons that they are obligated under 2013, VAT Act to charge and remit the taxes,” she said.

The charges recount all sales made by digital platforms and commissions given to vendors.

Online retail businesses became the subject of taxation last year, following amendments to 2019. Finance Act which brought digital transactions under the tax man’s net.

The penalty for late filing remains at five per cent of tax due or Ksh.10,000, whichever higher and an additional tax of two per cent intensified per month.

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