A total of 66,269 Kenya Revenue Authority (KRA) PINs will be deregistered starting Thursday, June 10.
They will be made dormant.
They will affect individuals and companies who do not file their returns and those who have forfeited their VAT obligations.
“Deregistering or cancelling of VAT obligations is a continuous excise and will affect taxpayers who perennially fail to file their VAT monthly returns or those who persistently file nil VAT returns, among others,” KRA said in a public notice o Tuesday.
Business affected by this exercise will be barred from charging VAT on their supplies. They will also not be allowed to make input VAT claims on supplies.
KRA urged all the registered taxpayers to honour their obligation which is on part by filing returns.
“All VAT registered taxpayers are therefore advised to comply with their tax obligations to avoid deregistration or other punitive enforcement measures as provided in the tax statutes,” KRA stated.
“Deregistered taxpayers will remain liable for any acts done or omitted while they were registered for VAT obligation. Taxpayers whose VAT obligations are cancelled are reminded that charging VAT without an active VAT registration is an offence,” added KRA.
Once deregistered, the affected persons/companies will be left with their PINs but they will not be valid since they are dormant.