What is VAT on sales of goods?

VAT is a multi-stage tax that is levied at each step of production of goods and services which involves sale/purchase. Any person earning an annual turnover of more than Rs. 5 lakh by supplying goods and services is liable to register for VAT payment.

What goods are VAT exempt in Kenya?

Some of the most common VAT exempt goods in Kenya include milk, eggs, meat, rice, maize, bread, beans, unprocessed vegetables, tubers, infant food formula, medicines, fertilizers, sanitary towels, pharmaceuticals just to name a few.

Who is eligible for VAT in Kenya?

Who should register for VAT? Any person, individual, company or partnership that has supplied or expect to supply taxable goods worth Kshs. 5,000,000 and above within 12 months; you MUST register for VAT. Registration is done online via iTax.

What is VATable product?

What are VATable goods? All goods manufactured/ assembled in or imported into Nigeria, except those specifically exempted under the law. Examples of VATable goods include jewelleries, shoes, bags, television etc.

What is the VAT on fuel?

20%
What is the VAT on fuel? When it comes to fuel duty, the flat rate for VAT is 20%. You’ll likely see a reduced rate of 5% on domestic heating fuel, so this is worth noting for your mileage rate. The rate you pay with VAT on fuel depends on the type of fuel it is, due to co2 emissions.

What services are not Vatable?

There are some goods and services on which VAT is not charged, including:

insurance, finance and credit.
education and training.
fundraising events by charities.
subscriptions to membership organisations.
selling, leasing and letting of commercial land and buildings – this exemption can be waived.

How do I calculate my VAT withholding?

Withholding VAT on taxable supplies not charged VAT is computed using the fomular X – X/1.16 where X is the total value of the invoice or taxable supplies. Only taxable goods and services are liable to withholding VAT. No VAT is withheld on exempt goods, exempt services and Zero rated supplies.

What items are VAT free?

Items that are VAT exempt in the UK

Some food and drink. Most food and drink for human consumption is VAT exempt, but there are some important exceptions.
Children’s clothes.
Publications.
Some medical supplies and equipment.
Charity shop goods.
Antiques.
Some admission charges.
Gambling.

What are VAT exempt items?

Goods and services exempted from VAT are:

Non-fee related financial services.
Educational services provided by an approved educational institution.
Residential rental accommodation, and.
Public road and rail transport.

Is there VAT on zero rated goods in Kenya?

In both cases, VAT is not added to the selling price of the goods or services but zero-rated goods and services are taxable at 0% VAT. This article will give a clear insight on the list of zero rated goods and services in Kenya.

How is Certificate of export issued by Kra?

Upon exit through the border, or port, a certificate of export is issued. KRA has implemented the Trading Across Borders reforms aimed at enhancing compliance by reducing the time and cost of documentary and border compliance for coffee tea, spices and herbs and imports of brand new motor vehicle spares.

What is the VAT rate for zero rated supplies?

0% – for Zero rated supplies. Goods listed in the 2nd Schedule to the VAT Act e.g. Exportation of goods/services, goods supplied to EPZ, Priviledged persons and Public bodies etc. 8% – Petroleum oils obtained from bituminous, Motor Spirits (Diesel Supero, AViation spirit etc.) 16% – General rate for other Goods and Services

Is the VAT withheld on exempt goods refunded?

Withholding VAT is charged at a the rate of 2% of the value of taxable supplies with effect from 07/11/2019. No VAT is withheld on exempt goods, exempt services and Zero rated supplies. Any VAT withheld in exempt and Zero rated supplies is treated as tax paid in error and therefore refundable by the Commissioner.

What is VAT on sales of goods? VAT is a multi-stage tax that is levied at each step of production of goods and services which involves sale/purchase. Any person earning an annual turnover of more than Rs. 5 lakh by supplying goods and services is liable to register for VAT payment. What goods are VAT…