VAT Obligation Mandatory

So those small businesses that just register for Income tax obligations lazima wakuwe VAT registered. And doesn’t KRA give the option of removing unnecessary tax obligations especially those who clicked everything in a cyber cafe? Any IMF, World Bank slowly :clap::clap::clap:

We need to collect more taxes to have more money to hasten development plans. We are fixing the handshake



Kujeni muone fiile serikari yenyu inawapipinya

Mbwaaaaaa, they are collecting more taxes to steal and store in offshore accounts. Ngiteeee

No. It is not mandatory. They are enforcing eTims for those businesses whose receipts are used by their customers to file for income tax… If all your customers do not use your receipts to file, you do not require it… this will actually be forced on you by your customers not KRA… But KRA is taking advantage of this to capture more ignorant persons… If you sell cabbages or clothes or anything to domestic users the law does not require you to have eTims. And this eTims is not for VAT purposes because you cannot even charge VAT unless you are registered for VAT… The eTims receipt will show the VAT status appropriately (exempt/ zero rated or VATAble)… I hope it’s clear… But it has extremely serious tax implications on the business enviroment…

I get that, but every expense from your business will have to be accompanied by an etims receipt. For the small supplier of tissue to a company, what happens to them?b They’ll be kicked out of the supply chain. It will be disastrous for small businesses who supply vitu ndogo ndogo to companies

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That is correct! If you supply to any company that requires your receipts as expenses or purchases in their books of accounts, you need an eTims invoice but you are not required to charge VAT unless you are registered for VAT… However, many shops and many other hustlers like Mama Mbogas, that do not make such sales/ suppliers will not be required to have the eTims receipts… It is not a blanket requirement… because you can choose not to sell to these companies… and therefore do not require eTims…

Sadly enough I’ve written to some suppliers of our kibanda telling them about this requirement, and I know some will have to go

Even me! Kwanza from 1st of July 2023… That is the sad fact!

It is important to let them know, sio mimi nakufukuza, ni jambass anakufukuza, blame him

exactly! My debate was on the general requirement for all traders… There are some sectors that do not supply other businesses like boutiques, mama mbogas, hawkers, small kiosks, etc… and if they do, proportion is insignificant and can therefore be ignored since the risks that come with eTims are waaaay higher than the benefits for them!!