The law requires that after charging VAT, you are required to account for it to the Commissioner. The VAT legislation stipulates following ways in which you should account for the tax:
a) Issuing a Tax Invoice
A Tax invoice is the most important instrument of VAT control. The VAT Law requires you to issue a tax invoice for every supply of taxable goods or taxable services, which must show the amounts of tax charged. You must therefore furnish the purchaser with a tax invoice at the time of supply.
b) Input Tax Deduction
As a registered person you are entitled to input tax deductions for VAT paid on inputs which relate directly to your taxable supplies except where the law prohibits.
(C) Keeping Records
You are required to keep business records and books of accounts and avail them for verification by an authorized revenue officer whenever demanded. The records include: -copies of all sale invoices, original purchase invoices, credit and debit notes, customs entries, audited accounts, ledgers, cash books, bank statements, copies of ETR monthly printout pay-in-slips and a summary of VAT Accounts.
We act as your agents in the KRA iTAX monthly returns in Kenya. Our consultants are available to guide you through this process and any other tax related issues in the republic of Kenya. Tax compliance is a key component of economic development.
