Withhold VAT to stop revenue leaks

Withholding VAT (WH VAT) was first introduced in Kenya in 2003 as a reinforcement measure to mitigate against government revenue loss through non-remitted VAT.

When a person supplied goods or services to specific recipients, the payment would be received less the VAT charged. The WH VAT agents would issue WH VAT certificates to the suppliers indicating VAT withheld.