KRA puts on notice non-compliant e-commerce dealers

Kenya Revenue Authority (KRA) has put on notice individuals engaged in online businesses who do not pay taxes.

In a public notice, the taxman said it had has noted that some taxpayers carry on online business but they do not file returns or pay taxes on the transactions.

“KRA would like to advise that unless income or supply is expressly exempt in the law, appropriate taxes should be paid. KRA would therefore like to remind the taxpayers that the self-assessment regime requires them to file and pay taxes which may include; VAT, Excise Duty, Witholding tax, PAYE, Corporate taxes and any other tax obligation required under the business,” said the notice.

According to KRA, taxpayers whose annual taxable turnover is Ksh 5 million and above should register for VAT obligation and charge tax, while those whose turnover is below Ksh 5 million should pay presumptive tax.

“Further, note that KRA will facilitate taxpayers who need assistance to enable them to declare taxes. To this end, all taxpayers engaged in online trading in goods and services are invited for a sensitisation forum on 17th May, 2019 from 8:30 am to 11:00 am at Hilton Hotel,” the notice added.

KRA is projecting a 40% growth on the rate of tax returns compliance this year with more than four million taxpayers expected to submit their returns on the iTax Platform by 30^th June 2019.

It recently rolled out a public campaign dubbed Tujijenge (Let’s build ourselves) on digital, radio and print media platforms.

The campaign seeks to encourage taxpayers to comply with their tax obligations by filing their 2018 income tax returns . KRA further encourages Corporates and Business Owners to pay their 2018 tax dues by 30^th April 2019.

Speaking during the launch of the campaign, KRA Commissioner for Domestic Taxes, Elizabeth Meyo said that domestic revenue collections plays a critical role in sustaining economic development.

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“Through our collective tax contributions, the government has been able to successfully ensure development of infrastructure and other projects across the country,” Meyo said.