Kenya Revenue Authority has issued a notice urging local online traders to pay taxes as required by law. Part of the announcement reads, “KRA has noted that some taxpayers engage in online business and they do not file returns or pay taxes on the transactions. KRA would like to advise that unless income or supply is expressly exempt in the law, appropriate taxes should be paid.”
The revenue agency is seeking to improve tax compliance and expand the taxable population so as to collect more funds from Kenyan taxpayers. Revenue collection in the first half of 2018/2019 fell short of the targeted amount.
KRA requires traders with an annual taxable turnover above KSh5 million to register for VAT obligation and charge tax while traders whose turnover is below KSh5 million pay presumptive tax.
The government body has organized a training session for all online traders to learn about tax compliance and to get help in declaring taxes.
