Kenya New VAT Act 2013
Consumption tax in Kenya is operated through the Value Added Tax (“VAT”). Currently, VAT in the country is governed by the VAT Act Chapter 476 Laws of Kenya which was signed into law in 1989. From financial year 2011, the Government of Kenya has made various attempts to overhaul the VAT Act governing administration and enforcement of VAT in the country. This was through the VAT Bills 2011, 2012 and currently VAT Act 2013.
The intention of the overhaul is to increase government revenues, simplify VAT administration, reduce compliance costs and dealing with the ever increasing burden of VAT refunds which presents an administrative challenge to the Kenya Revenue Authority (“KRA”).
The VAT Bill 2013 was approved by parliament on Monday August 6th 2013, assented by President Uhuru Kenyatta on August 14th making it an Act of Parliament, Gazetted on August 16th and will come into force within a month of its gazettment i.e. September 16th.Read more: Kenya New VAT Act 2013