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 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.
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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