OVERVIEW OF VAT POLICY AND ADMINISTRATIVE CONSIDERATIONS FOR CONSTRUCTION INDUSTRY

Abstract

• Charged on supply of taxable goods or services made or provided in Kenya and on importation of taxable goods or services into Kenya. • Registration threshold is Kshs. 5,000,000(App. $50,000) and above within 12 months; There exists a voluntary registration mechanism despite the threshold. • Registration is done via an online tax platform (iTax) • Once registered, one is required to account for VAT charged on the taxable supplies through online monthly returns and pay any VAT due. • The Tax is administered under the VAT Act 2013.