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.
Latest Kenyan news
October 10, 2016
Kenya has reintroduced its withholding VAT, backdated it to 19 January 2016. The measure, designed to prevent VAT evasion...
June 12, 2015
The new 2015/16 budget for Kenya includes a number of VAT changes, including: Good in transit will be nil rated instead of exempt from VAT,...
November 22, 2014
Kenya has updated the guidelines on its withholding VAT regime. Withholding VAT was introduced in 2003 as an anti-fraud measure....