Greeting fellow Kenyans:)
If you are importing stuff say from Amazon, Ebay, AliExpress will you be charged tax when they land here like customs/import duty. They are electronic gadgets. What should I expect? The cost of one is between 4k-6k. I want to import 50.
Saidieni ‘hustler’ na information ama referral. KINDLY.
You will certainly pay customs tax on these items. You need to indicate the invoice value for the 50 items. This appears to be between 240k and 300k… Expect to pay at least 100k as customs duty. I would advise you to contact a clearing agent before you import so they can help determine the duty for you.
@JSOK if you dont follow what jimjones amekushow in his last line utalilia kwa choo… i onetime left goods after they levied ridiculous levies design they became even expensive than buying them from Kenya… Ksh. 30k worth of goods were ending up costing Ksh.70k
Hizi vitu tumia kampuni ya walalo kuingiza, wanjua all the panya routes za ku avoid tax. Otherwise utakamuliwa Hadi utoe powder.
You’ll be taxed. Recently had to pay customs taxes on an amplifier board I bought from aliexpress. The amp cost 4100 and had to pay 1645 in taxes.
Normalize payment of taxes. It is a folly and disservice to your business when you try and evade/ avoid payment of taxes.
True… If it is for resale, it is stupid to avoid paying… If it is for personal consumption, one should use all the means possible to evade.
This is how to calculate
Value of Goods sample figure = 240k
Import duty is at 25% OF 240k = 60,000
VAT 14% OF (240k(cost of goods) + 60,000(import duty)) = 42,000
Import declaration fee 3.5% of Price = 3.5/100240000 = 8,400
Railway development levy 2% of Price= 4800
Excise Duty 10% of price = 2400000.10 = 24000
KEBS stamp duty = around 1500
total = Kshs 140,700
this is why walia is cheap for business
Unless you do not pay taxes, it might not be good for a business in the long run. Do the Walias produce official tax invoices that are acceptable by KRA to justify VAT and purchases claims? It is good for very small businesses and excellent for personal use…
If you pay taxes, you will be out of business. The problem with Kenya is that small business will always evade taxes. Because of that, they will undercut big businesses. && Kenyans are price-sensitive buyers.
If you are too small you can easily evade taxes. But if you want to grow, pay taxes or the taxman will surely haunt you to bankruptcy if you grow too big
If you want to remain small and get into issues with KRA, play this game. The best option if you plan on growing a sustainable business is to pay legit taxes. KRA can come for you even 5 years later na wakiskia ulitumia shortcuts utalipa iyo doe ulifkiria ulihepa plus maximum penalty with interest.
But what sustainable business will you grow when your competitors charge 50% cheaper than you because they do not pay taxes? This is why we will always have an informal sector and why everything will be small. It’s probably part of the reason why manufacturing can’t take off.
They will still remain small… how many corporates deal with these small time traders who do not have audited accounts and have very little, if any, in VAT filing? At the personal consumer level, the small timers rule but when it comes to the formal corporates and institutions, the tax compliant larger companies rule. It is for one to choose the target market and growth plans and decide…
I was asking in order to asses my probable tax liability; not to evade.
First, Many thanks for this detailed picture.
There goes my dream business. It is just not possible with these taxes.
I know… I am just answering the person who is encouraging you to evade…
Please talk to me…tutakubebea and deliver to where you are…guys when importing from the UK, kindly talk to me…tutasaidiana