The Kenya Revenue Authority has warned taxpayers who engage in online businesses and do not pay taxes on the transactions against doing so.
“KRA has noted that some taxpayers engage in online business and they do not file returns or pay taxes on the transactions,” read part of a notice by the tax authority.
The revenue collector said online traders are required to file and pay taxes, which may include VAT, excise duty, withholding tax, PAYE, corporate taxes and any other tax obligations required under the business.
“KRA would like to advise that unless income or supply is expressly exempt in the tax law, appropriate taxes should be paid,” said the firm in a notice published by the dailies.
Those whose annual taxable turnover is Sh5 million and above should register for VAT obligation and charge tax while those whose turnover is below Sh5 million should pay presumptive taxes.
KRA expects more than four million taxpayers to file their returns on ITax system by June 30 2019.
Last year, over 3.2 million taxpayers filed their returns in time through the iTax system, according to the taxman.