Tax Experts

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Village Elder
I have applied for a contract some place, and I am being asked for a VAT certificate. Problem is, I have not registered for my side business, which has an annual turnover of between 800,000-1,1M.
Am I bound to register for VAT, and if not, what am I supposed to do.
I need the contract, but walai ndlama na gava ndio staki
Thank you


Village Elder
Still ambiguous. From my little knowledge, unless you are selling VAT services such as consultancy work, you don't need VAT Registration. With that turn over, a simple ToT is okay.

Lakini tafuta someone at KRA to educate you.


Village Elder
All income nowadays is more or less taxable. The 5M yearly turnover still applies but if a prospective client asks for a ETR receipt you will either have to comply with tax or lose the job. Even if you take the job as a consultant, you still have to pay tax. You mentioned "real estate"? KRA are especially directing a lot of effort into that sector.

With iTax it is impossible to run a business and not pay tax. You will need to register a business (sole proprietorship, partnership or limited company), get a PIN (which now acts as the VAT no), get an ETR machine, then get a bank account. Remember to make monthly returns from date of registration and yearly returns to the registrar of companies.

Even TCC are now linked to iTax. So, the sooner businesses comply, the better.

This time round, use a friend's company that is fully compliant as you sort out yours.

Mundu Mulosi

Staff member
From around 2009 companies need not register for VAT as long you have the Kra Pin. Tell them you have contacted Kra and you have been told they no longer Register Companies for Vat, the Kra Pin is enough.
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