Makabe Consulting

Things are moving very fast. With the way KRA continues to evolve daily to ensure they collect every shilling due from taxpayers and businesses, you should ensure that you are operating at least as a limited company.

Having a company creates a separation between you as an individual and the business, giving you better structure, compliance advantages, and more leverage when it comes to taxation and financial management. The company is assessed independently, and you are also assessed independently as an individual.

If you have been planning to register a company, this is the right time. Stop procrastinating.

We help you register your company in just one day and guide you through the compliance transition process so you can trade with confidence, structure, and compliance assurance.

Contact us today for support. Our contacts are in the bio.

once said ✨✨✨, emotions don't sign contracts

Happy Easter Holiday.

𝗞𝗥𝗔 𝗽𝗿𝗲𝗽𝗮𝗿𝗲𝘀 𝟭𝟲𝗽𝗰 𝗩𝗔𝗧 𝘀𝗵𝗼𝗰𝗸𝗲𝗿 𝗼𝗻 𝘀𝗺𝗮𝗹𝗹 𝘁𝗿𝗮𝗱𝗲𝗿𝘀
In a bid to meet its revenue collection target, KRA has proposed the removal of the current Ksh 5 million Value Added Tax (VAT) registration threshold.

This marks a significant shift in Kenya’s tax framework and could substantially widen the VAT net.

𝗖𝘂𝗿𝗿𝗲𝗻𝘁 𝗙𝗿𝗮𝗺𝗲𝘄𝗼𝗿𝗸
The establishment of this threshold is backed by Section 34 of the VAT Act which highlights the threshold for registration for VAT.

The Section clearly states the value of the sales, the period to get registered, the duration needed for the value of the sales, the types of services included, the taxable supplies viable, and the timeline when the registration is to be held.

𝗣𝗿𝗼𝗽𝗼𝘀𝗮𝗹
This proposal will amend this Section 34 all together. In the meantime, what this proposal implies is that all traders from small businesses to businesses operating large scale will have to register for VAT.

The move aims to boost VAT payers from 230,000 to 800,000. This is set to close the Sh378 billion collection gap and bring them close to the target of over KSh1 trillion in revenue.

𝗜𝗺𝗽𝗹𝗶𝗰𝗮𝘁𝗶𝗼𝗻𝘀:

The impact of these proposed changes are as follows:

- VAT registration will become compulsory for all traders dealing in vatable goods

- All traders both in formal and informal trade will become VAT agents

- Consultants will also need to incorporate the 16% VAT charges on their fees

- All goods including Fast Moving Consumer Goods will include VAT

- All traders will have to remit tax monthly given the filing of VAT on the 20th

- All businesses would be required to issue compliant eTIMS tax invoices and maintain detailed sales records

Immediate result of this is the price of daily goods will hike as traders will pass the tax burden to consumers.

To businesses, some will be pushed out of operation given the additional administrative cost and working capital strain due to VAT remittances.

Register right with us, service fee applies.

Yes, KRA knows about your 2025 sales, swipe left, and slide to the DM for support.

Contacts in Bio

Even if you’re fully compliant, KRA can still flag discrepancies,from VAT filings, eTIMS records, withholding certificates, to PAYE mismatches.

Avoid audit hotspots by ensuring your tax compliance is handled by a professional.

Ready to file your 2025 tax returns? Let’s make it smooth and stress-free.

Contacts in Bio

Can you slightly change the company name while converting your business name? 🤔
No. A name change isn’t allowed during conversion.

However, you can register your preferred new name as a fresh application and then affiliate it to your existing business.

Happy Holidays 🎄✨.

KRA can review past tax periods (usually up to 5 years) and even longer if there’s fraud or misreporting.

Why get a formal KRA findings report?

1. Know exactly what issues to fix

2. Avoid surprises like penalties

3. Correct errors before final assessments

Keep a record showing your business is compliant

Bottom line: Always request a findings report, it protects your business and keeps you audit-ready!