On 17 November 2014, the Kenyan Revenue Authority issued Guidelines on the Withholding of VAT. The guidelines cover the VAT withholding system re-introduced by Finance Act 2014.
Key aspects of the guidance include:
- Government bodies, ministries, departments and other VAT withholding agents are required to withhold 6% of the value of taxable supplies when making payments for such supplies, and must remit the funds to the Commissioner of VAT - exempt or zero-rated supplies and official aid-fu…