Wednesday, September 28, 2022
Home > Business & Finance > VAA yields Sh.1.9 billion tax within a short span

VAA yields Sh.1.9 billion tax within a short span

The  Value Added Tax (VAT’s) Value Auto Assessment (VAA) system has seen tremendous increase in tax collection.

The system based solution is used by the Kenya Revenue Authority to detect inconsistencies between purchase and sales invoices of tax payers.

The  Deputy Commissioner (DC), Policy and Tax Advisory, Caxton  Ngeywo said on Thursday that previous interventions yielded 1, 590 assessments worth Sh.3.5 Billion out of which Sh1.9 billion has been collected.

Ngeywo, who was speaking to media during a sensitization meeting at KRA office, said the system has eliminated unresolved inconsistencies.

“VAA focuses on improving the integrity of data in VAT returns and disallowing claims of unsupported inputs by taxpayers,” he said, adding that it also identifies unreported transactions hence broadening the tax base and enhance revenue collection.

Ngeywo noted that so far, 35, 876 taxpayers inclusive of buyers and sellers have been affected by the VAA while 642, 557 invoices whose value is Sh141 billion have been affected.

The unmatched input tax claims, he added, yielded Sh.22.5 billion, part of which would be reconciled through amended returns.

“Taxpayers are supported through access to the system for amendment of returns and engaging in Consultative meetings with representative organizations and individual taxpayers and so far, engagements have been made with RETRAK, KAM, ICPAK and Audit firms,” the DC said

Ngeywo urged taxpayers to correct any misinformation online as well as get assistance from any nearest Kenya Revenue Authority (KRA) Tax Service Office and Huduma Centre among other platforms.

The  Ag. Commissioner Domestic Taxes, Dr. Ruth  Wachira said KRA looks forward to having zero inconsistencies in future and that they were focused on improving their accounts system.

“KRA is analyzing feedback from taxpayers to find out how they are complying before rolling our second VAA in February next year,” Wachira added.

Wachira  further said that they were working with South African Revenue Agency and Swedish Tax Agency in boosting revenue collection.

The VAA tool is expected to curb claims of fictitious and/or unsupported input tax by VAT registered persons thereby enhancing compliance.

By Bridgit Sande/ Kishengo Gathigia

Leave a Reply