September 19, 2019

KRA goes after gas stations, orders them to issue motorists with receipts

The Kenya Revenue Authority (KRA) has ordered oil marketers to issue electronic receipts to motorists fuelling at their stations. The receipts are required to show tax paid by customers each time they fuel their vehicles. This comes after the recent introduction of 8 percent Value Added Tax on petroleum products.

The revenue authority warned to penalize gas stations that will fail to comply with the new rule, adding that their undercover officials will be out on the streets to identify non-compliant businesses.

“Customers should not be demanding ETRs. Sometimes you will find KRA investigators doing mock purchases like normal consumers but with an agenda to find out who is not issuing ETRs. As soon as we fail to get it, the police will be waiting for you. Kindly always find yourself on the right path to avoid non-compliance penalties,” KRA chief manager for domestic taxes Ms. Judith Njagi told Petroleum dealers during a stakeholder engagement forum held at the Times Tower, Nairobi, yesterday.

Speakers at the forum termed the directive a logistical hurdle, which they should be exempted from since gas is a highly regulated product whose sales are easy to track through the pump and supply chain.