Kenyan VAT registration

What are the Kenyan VAT registration thresholds?

There is an annual VAT registration threshold in Kenya of KES 5million. However, businesses below this threshold are still liable to a 3% turnover tax up to the registration threshold level.

There is a limited VAT group registration scheme for related businesses in Kenya. Voluntary registration for businesses below the above threshold is permitted, although only for resident traders.

Non-resident traders operating in Kenya

Non-resident businesses are liable to register. If they cross the VAT registration threshold, they are required to apply for a VAT number and appoint a local Fiscal Representative (VAT agent). This representative is jointly and severally liable for the VAT due by the foreign company.

VAT registration procedure

Applications for a VAT registration are completed online – by the Fiscal Representative in the case of businesses without a fixed establishment.

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