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
You can’t evade the tax man
Hehehe… Loopholes my friend, loopholes. I got a TCC without paying taxes.
Nipatie kitu kidogo nikusort
1 Like
This village is abt helpin others ,peleka biashara olx ,et al
1 Like
What business type is it? Not all biz requires VAT.
Following closely
I want to learn something new.
Company secretarial work and real estate
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.
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.
What is ToT, kindly
Turn over Tax.
Apply for T.O.T since your annual turnover is less than 5m. Watu wa gover wakiuliza waambie you are not eligible for VAT
Thank you very much
Hiyo ilikuwa kusaidia,I rarely do that.
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.
To attract more business you have to comply. Register for vat
You definitely need to register for VAT as clients will ask for ETR receipts to claim VAT.
1 Like
@kingolonde vile @spgizzi amesema, save yourself from future dramas, Just go n’ register for VAT. it takes only few minutes.