Over 66,269 Kenya Revenue Authority (KRA) pins are set to be deregistered by the taxman effective June 10, 2021.
According to KRA, owners of the pins would include individuals and business entities.
“Deregistering or cancelling of VAT obligations is a continuous excise and will affect taxpayers who perennially fail to file their VAT monthly returns or those who persistently file nil VAT returns, among others,” KRA said in a public notice.
Those affected will be barred from charging VAT on their supplies and will face a further barrier in making input VAT claims on supplies.
The frozen pins relate to taxpayers who have persistently failed to file returns with the taxman.
“Deregistered taxpayers will remain liable for any acts done or omitted while they were registered for VAT obligation. Taxpayers whose VAT obligations are cancelled are reminded that charging VAT without an active VAT registration is an offence,” added KRA.
According to the taxman, deregistered taxpayers are, however, not granted immunity from past tax obligations.
They will retain their KRA pins but will be unable to transact with the deregistered accreditation’s.
“All VAT registered taxpayers are therefore advised to comply with their tax obligations to avoid deregistration or other punitive enforcement measures as provided in the tax statutes.”
