KRA Explains Why Businesses Will Now Wait Longer to Get Back VAT on Unpaid Bills

The Kenya Revenue Authority (KRA) announced that the period for applying for VAT refunds on bad debts has increased from two to three years. Businesses are required to maintain proper records to support their refund applications. Additionally, KRA clarified that VAT should only be charged where the underlying supply is taxable and introduced changes regarding exempt goods and fees for digital payment services.