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Quarantine shopping: KRA now goes after online traders

By Amina Wako April 25th, 2020 1 min read

The Kenya Revenue Authority (KRA) has directed businesses trading on digital platforms to remit VAT on all digital sales.

The Commissioner Domestic Taxes, Ms Elizabeth Meyo, said in a statement, that KRA had noted with concern that some digital business owners had failed to charge VAT as required by law.

“KRA wishes to inform such persons that they are obligated under the VAT Act, 2013 to charge and remit VAT all the sales made through their digital platforms and the commission charged to the vendors for the use of their digital platforms,” the statement read.

“All non-compliant traders are hereby advised to comply to avoid penalties and interests on outstanding taxes failure to which appropriate action will be taken in accordance to the law,” the Commissioner added.

“Where fraud will be detected, appropriate criminal proceedings shall be brought against the offenders,” she added.

This comes at a time when many Kenyans have turned to online shopping to keep social distance and minimize getting out of their homes as a way of reducing the risk of contracting or spreading coronavirus.

Last year, former Treasury Secretary Henry Rotich paved the way for KRA to start taxing revenue generated by electronic commerce in Kenya.