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VAT tax returns
Rank: Member Joined: 4/15/2008 Posts: 58
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Instead of going to Times Towers to queue; I found out that u can logged your returns via KRA website. It worked for me. You have to register for the online services. Additionally u can walk into any post office and log ur returns with them for onward transmission to KRA. At Nyayo stadium post office there only 2 guys on the queue while at times tower the queue was upto central bank. info is money doh attached the following image(s):  vatimages.jpg (5kb) downloaded 0 time(s).
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Rank: Member Joined: 10/6/2008 Posts: 118
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thats ITMS,soon guys will go home as IT takes control. the most frustrating tax payments are withholding tax for April and June coz they concide with Dec year end instalments.
I can teach anybody how to get whatever they want out of life. The problem is that I can't find anybody who can tell me what they want.' Mark Twain
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Rank: Member Joined: 7/16/2008 Posts: 34
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You can also register online for the PIN
The truth shall set you free
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Rank: Member Joined: 1/15/2009 Posts: 11
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Hey Doh,
U managed to do the whole online reg thing??? Ave tried but everytime ati hiyo service is unavailable at that time.How did u go about the PIN acquisition?? Those guys at KRA hawanisaidii.
Whatever exists has already been named,and what man is has been known; no man can contend with one who is stronger than he.
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Rank: Member Joined: 4/15/2008 Posts: 58
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I am an already registered tax payer. I was filing my vat returns. So you first register as an online user. You select existing tax payer option,you will be requested for your pin and other information. Eventually you will be emailed a security key which u use to log in and access the services. Some manuals are avaliable on that page in PDF form. Try going thru them. Good luck.
info is money
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Rank: Member Joined: 11/14/2006 Posts: 28
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You guys are right. With the new online system,your messanger doesn't have to line up at Times Towers all day. If your VAT Book is filled up,please note you will not get another one,you will be required to go online to file your returns. You can do your PIN Application,VAT Returns and by May,your Income Tax returns. Go to www.kra.go.ke/portal to register as an online user. In case you have any queries,please call the KRA Call centre on 4-999-999 or email: callcentre@kra.go.ke
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Rank: New-farer Joined: 12/23/2009 Posts: 22 Location: Nairobi
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Hi guys. Don't know if this has been asked before but here goes: I have a "dormant" private company. I realize that I have to file returns. So I registered on the KRA online portal. I had no V.A.T number but the V.A.T obligation was activated. Am I liable to file returns for all the months I've been dormant? And what else do i need to do to keep on the right side of the law? Thanks in advance. Do or Do Not, there is no Try!
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Rank: Elder Joined: 9/15/2006 Posts: 3,901
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@Qognito, maybe the answer lies in your signature. The law clearly states conditions for VAT registration / obligations, but the portal has quietly created a virtual obligation. Should you submit? Come to think of it, unless legislation forces people to comply, not more than 6-15% of tax payers would use the portal. The conditions for VAT remain turnover [3.0 Million in 12 months] and certain types of businesses [dealers in jewellery, autoparts, consultancy, computers etc] as specified in the Act. http://www.revenue.go.ke...td/vat/VATataglance.pdf
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Rank: New-farer Joined: 12/23/2009 Posts: 22 Location: Nairobi
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@Muganda Thanks for the info. I think computer services are not included in that list. I'll check on it some more. So we got the company registration 2 years back. Since we are into freelance, anybody know what else I need? Like council permits et al. And what other documents you need to file with what bodies. Pardon my naivety. I am new on it all. Thanks again, in advance. Do or Do Not, there is no Try!
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Rank: Elder Joined: 9/15/2006 Posts: 3,901
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@Qognito read document carefully...
...Computer services of any descripton, including the provision of bureau facilities, systems analysis and design, software development and training, but excluding training offered to students...
Council permits necessary if you've got an office I think.
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Rank: Elder Joined: 6/27/2008 Posts: 4,114
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@Qognito: As long as you are registered for VAT, you MUST file monthly returns even if you have not made any sale. These are called "NIL RETURNS" Failure to file a return attracts a minimum Sh10,000 penalty for each month. This penalty attracts a 2.5% interest per month if not paid. So, you owe KRA at sh240,000 for the 2yrs (24 months) that you have not filed returns. In addition, there will be interest on the penalties.....use MS Excel to work them out. If your company goes dormant, the procedure to follow is to write to the Commissioner of VAT advising the status. Then you continue filing nil returns until the day you get a written confirmation that you registration has been withdrawn. Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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Rank: New-farer Joined: 12/23/2009 Posts: 22 Location: Nairobi
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@Muganda Many thanks for the info. And the pointer to the KRA info. I got this: "...REGISTRATION * Minimum turnover requirement for Registration is Kshs 3 million per year but Kshs. 5million from 1st Jan 2007. * Some businesses are however registered irrespective of their turnovers e.g. dealers in motor vehicle spare parts, electronics, timber, jewellery and professional services e.g accountancy, computer services, advertising, clearing & forwarding etc....." http://www.kra.go.ke/vat/VAToverview.html
Although I cant track it, i would have sworn I did see an exemption clause for computer services as per amendments done sometime. 3 years back maybe. About the council permit, I wanted to convert one of my rooms as an office, though much work involves visiting clients. Not much office-visitors. Do or Do Not, there is no Try!
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Rank: New-farer Joined: 12/23/2009 Posts: 22 Location: Nairobi
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@Mukiha. Thanks for the info. That had been my main worry. But the tax man has not made any move. I registered the company while in campus. Not much to do then. It would really suck if I have a pending obligation of over 240K. I wanted to file the nil returns online in their new online system. As a matter of concern maybe, do i need those VAT register machines? Even for nil trades? Too much misinformation on my part. Including stuff to do with shares registry update and all. Pardon my ignorance...  Do or Do Not, there is no Try!
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Rank: Elder Joined: 6/27/2008 Posts: 4,114
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@Qognito: The important date is NOT when the business was registered (by the registrar of companies - Sheria house); it is the date when it was registered for VAT at KRA. You must file all monthly returns from the Month following the date of VAT registration. And YES you must get an ETR as soon as you register for VAT. Returns without ETR are not acceptable over the counter - KRA is yet to figure out how to deal with ETR reports for online returns. Please note that there are only two certainties in life: DEATH and TAXES! The sooner you pay up the penalties the better. One day they will catch up with you and you will have to pay....even after you die, they will attach your property. Note that if you have been VAT registered for 24 months, you now owe over sh330k in penalties and interest!!! Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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Rank: New-farer Joined: 12/23/2009 Posts: 22 Location: Nairobi
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@Mukiha That's a relief. I registered it for V.A.T just 2 months back. Although it had been issued with the normal P.I.N. The online system makes it better to file the nil returns. I dont own an ETR yet. 330K is a scary figure. I realise my predicament is not unique. I just wonder how many people out there with dormant companies are sitting on potential debt. I would rather KRA assumed returns to be NIL unless they are filed. Would work well. The penalties would make sense then, since those who have something to declare and havent declared it, would be fined. The current structure assumes a "information rich" society. Which is not the case. Most kenyans are clueless. Pardon my ranting... I think I'll be filling online returns for the months ahead. Thanks again for the info. Do or Do Not, there is no Try!
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Rank: Elder Joined: 6/27/2008 Posts: 4,114
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@Qognito: Phew!! That was close! But still, if haven't filed the November return (deadline was 20th December), you have a sh10k penalty to pay! Ignorance is no defence....otherwise everyone would say "I didn't know" and the judges would let them go free!! In any case, KRA holds taxpayer seminars every month - you must have seen their adverts in the press - where all these issues are explained. So there is really a lot of information in the public domain for anyone interested....yes, the key word here is "INTERESTED" Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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Rank: Elder Joined: 6/27/2008 Posts: 4,114
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@Qognito; I just did my online VAT return for December 2009, and the system has been upgraded to capture the details of the ETR machine. So you have to buy one before you can make your online return. Secondly, see today's Daily Nation (p27) for listing of KRA's tax-payer seminars this month; they have scheduled one every Thursday, starting tomorrow. So don't accuse KRA of not informing the public. Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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Rank: Elder Joined: 9/15/2006 Posts: 3,901
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@mukiha Dec 09 return on Jan 06 - there's a lesson for better living.
Question if you will - Once you do your online return, where do you actually go to make the payment and what do you carry with you?
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Rank: Elder Joined: 6/27/2008 Posts: 4,114
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@Muganda; Why wait until the 19th of January and do the mad-rush with everyone else? I always do my returns before the 10th of the month. Once you submit the online return, you print out an e-payment slip (3 copies) and make the payment at Co-Op Bank. As of last Month, this was the only bank that could scan the e-slip and accept the payment. Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.
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Rank: New-farer Joined: 12/23/2009 Posts: 22 Location: Nairobi
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@Mukiha I had done the returns for November, luckily at the last day of November. Am yet to do my Nil Return for December. Was about to anyway till the ETR issue came up which really complicates issues if I have to get an one. Out of budget cost for a dry month. I'll try yo make the meeting tomorrow since I'll be around KRA. Thanks again for the info. Do or Do Not, there is no Try!
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