Google asks for vendor’s tax PINs ahead of 16pc VAT roll out
By John Otini, January 10, 2023
REVENUE: Kenya Revenue Authority (KRA) has turned to Internet search giant Google to help it enforce online taxes with traders getting February 1, 2023 deadline notices to comply.
Google has asked sellers of goods and services to submit KRA PIN numbers ahead of the roll-out of a 16 per cent value-added tax (VAT).
It is urging the vendors to add their PINs to their Google Payments profile as part of the processes to use the utility.
“Please update your Google Payments profile with your Kenya PIN number. You should soon begin to see the PIN number on your Google bills after it has been updated, it continued. In order to ensure that our invoice has this information, we advise sending your PIN number as soon as feasible,” the company said.
“Due to new tax legislation in Kenya, starting February 1, 2023, Google will be required to charge a 16 per cent tax on all taxable goods and services,” Google said in a statement.
It said those who fail to update their profiles will encounter problems with invoice validity processes. Invoice validity “Failure to provide your PIN number by February 1, 2023, may cause issues with invoice validity and possible implications for recovery of VAT costs if you are entitled to reclaim,” it said.
The declaration is made in advance of Kenya’s platform imposing a VAT of 16 per cent on all taxable products and services.
The tech company declared that starting on February 1, 2023, it will begin to collect taxes on behalf of the national government, raising the price of goods and services.
This follows the introduction of the VAT (Digital Marketplace Supply) (Amendment) Regulation 2022.