All registered taxpayers are required by Law to comply. The VAT Act lists certain offences and respective penalties.
1. Failure to register – fine not exceeding KSh 20,000 or imprisonment for a term not exceeding six months or both.
2. Enforced registration – default penalty of KSH 100,000.
3. Failure to submit a return on or before the due date or submitting a payment return without paying the tax due – default penalty of KSh 10, 000 or 5% of the tax due whichever is the higher and additional interest of 2% per month compounded.
4. Failure to keep proper records – a default penalty of between KSh10, 000 to KSh 200, 000.
5. Fraudulent Accounting – a fine not exceeding KSh 400, 000 or double the tax evaded whichever is greater or imprisonment for a term not exceeding three (3) years or both.
6. Failure to issue a Tax Invoice – an automatic penalty of not less than KSh 10, 000 but not exceeding KSh 100,000.
7. Hindrance or obstruction of authorised officers.
8. Uttering false statements.
9. Charging tax when not registered – tax shown on such invoice is due to the Commissioner within seven (7) days.
10. Failure to display a certificate of registration – a default penalty of KSh 20, 000 and a fine not exceeding KSh 200, 000 or imprisonment for a term not exceeding two (2) years or both.
11. Failure to comply with VAT regulations
12. Failure to pay tax and late payment
Useful information
KRA Call Centre
Tel: +254 (020) 4999 999
Mobile number: +254 (0711) 099 999
Email: callcentre@kra.go.ke
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