The Finance Act 2020 has amended the provisions of claiming of input VAT by including an additional requirement. It states that a person claiming input tax will only be able to do so if the input tax claimed has been declared as output tax by the supplier for VAT purposes. The input-output matching concept of sales and purchases is in force.
This is the implication for VAT registered businesses in Kenya while undertaking Vatable transactions.
As a Seller of Vatable goods or services:
As a Buyer of Vatable goods and services:
Inconsistent VAT Returns: