Kenya business V.A.T Responsibilities.

The taxable turnover threshold that determines whether businesses should be registered for VAT is currently Kshs 5,000,000 in Kenya. Businesses with turnover below this level can also apply for a voluntary VAT registration.

Businesses charge VAT on their sales. This is known as output VAT and the sales are referred to as outputs. Similarly, VAT will be payable on most goods and services purchased by the business. This is known as input VAT.

The output VAT is being collected from the customer by the business on behalf of KRA and must be regularly paid over to them. However, the input VAT suffered on most (but not all) goods and services purchased for the business can be deducted from the amount of output tax owed to KRA.

 

If your input tax is greater than your output tax, KRA will owe you a refund.

As a VAT-registered business you must:

  • include VAT in the price of all goods and services at the correct rate;
  • keep records of how much VAT you pay for things you buy for your business;
  • account for VAT on any goods you import into Kenya;
  • report the amount of VAT you charged your customers and the amount of VAT you paid to other businesses by sending a VAT return to Kenya Revenue Authority (KRA) – and
  • pay any VAT you owe to KRA.

 

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Navigating Tax Season: A Hassle-Free Journey with Kyutta Associates

Tax season: two words that can evoke a range of emotions from dread to confusion to frustration. Whether you’re an individual or a business owner, filing taxes can be a daunting task filled with complexities and uncertainties. However, what if I told you there’s a way to navigate through this annual ordeal with ease and confidence?

Enter Kyutta Associates, your trusted partner in tax filing and financial management. With their expertise and dedication, they offer a range of services designed to streamline the tax filing process and maximize your returns. Let’s delve into what sets Kyutta Associates apart and how they can make tax season a breeze for you.

  1. Expert Guidance: One of the most significant challenges in tax filing is understanding the ever-changing tax laws and regulations. Kyutta Associates boasts a team of seasoned professionals well-versed in tax codes and legislation. They stay updated with the latest changes, ensuring that you receive accurate guidance tailored to your unique situation.
  2. Personalized Approach: No two taxpayers are alike, and Kyutta Associates recognizes this fact. Whether you’re a freelancer, a small business owner, or a corporation, they offer personalized solutions to meet your specific needs. From tax planning to compliance to IRS representation, their comprehensive services cover every aspect of tax management.
  3. Efficiency and Accuracy: Time is precious, especially during tax season when deadlines loom large. Kyutta Associates prioritizes efficiency without compromising accuracy. By leveraging advanced technologies and streamlined processes, they ensure timely submission of your returns while minimizing errors.
  4. Maximized Returns: Who doesn’t want to keep more of what they earn? Kyutta Associates employs strategic tax planning techniques to optimize your returns and minimize your tax liabilities. Through careful analysis of your financial situation, they identify opportunities for deductions, credits, and incentives that you may have overlooked.
  5. Peace of Mind: Perhaps the most invaluable benefit of partnering with Kyutta Associates is the peace of mind they provide. No more sleepless nights worrying about missed deadlines or IRS audits. With Kyutta Associates by your side, you can rest assured that your taxes are in capable hands, allowing you to focus on what truly matters—your business and your life.

You can visit the KRA website

In conclusion, tax season doesn’t have to be a source of stress and anxiety. With Kyutta Associates, it can be a seamless journey towards financial stability and success. So why navigate the complexities of tax filing alone when you can have a trusted ally by your side? Contact Kyutta Associates today and experience the difference firsthand.

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Starting a new business in Kenya

Starting a new business in Kenya

20 steps to follow

  1. Idea

Perhaps you are taking your skills/qualifications as an employee across to your own business, or turning a hobby/passion into a business.

All businesses start with an idea!

  1. Research

Examine the market and consider the requirement and customer-base for your business. You will also need to research your competition and the industry you’re entering.

  1. Plan

Writing a business plan is an essential step in the start-up process, especially if you intend to approach investors, banks, lenders, or specialist advisors.

  1. Choose a name

This is worth getting right from the offset. You’ll need to check its availability (website domain, social media accounts, company register) and whether anyone else is using it. Also be careful to check for word meanings/associations!

  1. Dormain

Register your domain and social media accounts as soon as you settle on a name. Design and content can come later but securing these early will avoid disappointment if they become unavailable further down the line.

  1. Legal structure

You will need to decide how you are going to trade. The most common entities are:

Sole trader

Limited company

Partnership

Limited Liability Partnership

  1. Register

Whatever your chosen structure, you will need to incorporate/register with the Registrar of Businesses.

  1. Bank

Once your business is registered, you’ll need to consider your banking set up. Limited companies must have a business bank account and all businesses must keep track of income and expenditure.

  1. Finance

You might consider personal savings/ borrowing from friends and family/ small business loans/ overdrafts or 0% credit cards/ investors or business angels/ government loans or grants/ crowdfunding/ invoice or stock financing

  1. Suppliers

Do you need to source essential supplies for your business? If so, where from, and do you need to set up trading accounts?

  1. Location

Does your business need premises? The right location can make all the difference.

  1. Insurance

Consider the types of insurance you need for your business to be compliant and covered for risks.

  1. Branding and design

You’ll need to consider the way your business appears and the message it gives across – this includes design of a logo, website, literature, signage, packaging etc.

  1. Technology

Think about which software systems/apps will keep you organised and improve efficiency.

  1. Employees

Will you need employees to make your business a success? If so, you’ll need to recruit and set up a PAYE scheme (with ongoing payroll processing).

  1. Accounting

You will need to register with KRA for certain taxes. This may include Income Tax, VAT, PAYE, and Self-Assessment. At this point you must also acknowledge the joyous tasks of bookkeeping and accounting (and how you are going to manage these)!

  1. Marketing

You’ll need to spread the word about your new business. An initial marketing plan, and ongoing marketing strategy could be key to success.

  1. Data

Consider how you will store and manage customer data.

  1. IT Risks

Consider keeping files and data in the cloud, so that your vital documents and data are safe and accessible.

  1. Mentoring

Find someone who will give you honest feedback about your business and share their own experiences/wisdom.

 

 

 

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