^KENYA

Value Added Tax Act 2013

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Chapter 10

Pre Registration VAT (s.18)

This is input tax incurred within a 24 months period prior to the following two circumstances;

• On exempt supplies (sales) becoming chargeable either at 0% or standard rate or


• On the date of VAT registration (obtaining the VAT obligation) a person had incurred input tax on taxable supplies prior to this registration.

A person may, within three months from that date, claim relief from any tax shown to have been incurred on such supplies:


Refund of VAT(s.30 & s.31)

Refunds may be available under the following two circumstances only:

Tax Paid in Error (s.30)


• Where tax has been paid in error, the Commissioner shall, refund such tax:
• A claim must be lodged within twelve (12) months from the date the tax became due and payable under section 19.


Refund of Tax on Bad Debts (s.31)


• under (s.31(1)) an application for refund of tax on bad debts should be made
  
  
  • after 3 years from the date of supply or
  • where the debtor has become legally insolvent
  No application for a refund shall be made under this section after the expiry of five years (5yrs) from the date of the supply.
• Where the tax refunded under subsection (1) is subsequently recovered from the recipient of the supply, the registered person shall refund the tax to the Commissioner within thirty days of the date of the recovery. Otherwise interest starts runing at prevailing rate.


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