1. VAT Module 6: Collection and Recovery of VAT
©Dr. Wakaguyu wa-Kiburi (
8/23/2019
Prepared for by Dr. Wakaguyu Wa Kiburi

2. Prepared for www.taxkenya.com by Dr. Wakaguyu Wa Kiburi
Scope
When is tax due?
Imported goods subject to customs control.
8/23/2019
Prepared for by Dr. Wakaguyu Wa Kiburi

3. Prepared for www.taxkenya.com by Dr. Wakaguyu Wa Kiburi
When Tax is Due
VAT is due and payable at the time of supply.
Hence – Supplier should charge and collect VAT immediately.
However, the registered person may defer the payment of tax to a date not later than the 20th day of the following month.
Thus, collect the tax before the 20th day.
If 20th is a weekend or holiday under i-Tax??
8/23/2019
Prepared for by Dr. Wakaguyu Wa Kiburi

4. Imported Goods Subject To Customs Control
A person shall not be entitled to obtain delivery of imported taxable goods from the control of customs unless the correct amount of tax is paid in full.
What if it happens – case of vehicles cleared and no tax was paid:- Who is responsible?
Imports are by air, land or water.
8/23/2019
Prepared for by Dr. Wakaguyu Wa Kiburi

5. Imported Goods Subject To Customs Control cpnt’
The importer must produce the imported goods to a proper officer of customs (??) at the customs station at or nearest to the place of entry.
Are all goods produced to customs officers?
Customs officer – bears responsibility???
At or nearest – no excuse there was no customs station, covers the whole country.
8/23/2019
Prepared for by Dr. Wakaguyu Wa Kiburi

6. Imported Goods Subject To Customs Control cont’
Failure to produce the goods is an offence.
Q… What if it is not possible to produce the goods, what happens e.g. times of political crises?
Goods in respect of which the offence was committed are liable for forfeiture.
Q… Does it mean that in case correct amounts of tax are not paid, forfeiture cannot take place?
8/23/2019
Prepared for by Dr. Wakaguyu Wa Kiburi

7. Imported Goods Subject To Customs Control cont’
When does forfeiture take place?
Is there a time limit?
What can an importer do in case of forfeiture?
What are the other offences that will affect the VAT?
8/23/2019
Prepared for by Dr. Wakaguyu Wa Kiburi

8. Imported Goods Subject To Customs Control cont’
Responsibilities of Commissioner of Customs
Collects VAT payable at the time of importation – full responsibility (reason why post clearance audits are by Customs and not DTD.
Obtains information about the imports as prescribed/required – custodian of imports information. (Failure???)
Has powers to delegate his/her functions to the postal services – who else?
8/23/2019
Prepared for by Dr. Wakaguyu Wa Kiburi

9. Imported Goods Subject To Customs Control cont’
Commissioner under EACCM Act, 2004 (No. 8 of 2004) for duty and determination of VAT.
Hence, for VAT purposes EACCM Act, 2004 is superior to VAT (2013)???
8/23/2019
Prepared for by Dr. Wakaguyu Wa Kiburi

10. Prepared for www.taxkenya.com by Dr. Wakaguyu Wa Kiburi
Q & A
8/23/2019
Prepared for by Dr. Wakaguyu Wa Kiburi