The National treasury has announced on the criteria they will use to clear the backlog of the VAT Refund claims. The National Treasury and the Kenya Revenue Authority carried out a verification exercise to address the long standing issues of the VAT Refund claims backlog with a view to conclude the matter.
According to a press statement released today, the actual pending VAT refund claims backlog up to 31st Dec 2031 amounts to Kshs 19.2 billion.
The first installment of this backlog amounting to Kshs 11.2 billion of claims has been processed and verified and Kshs 9.3 billion is payable. In this regard, they have identified three categories of claimants as follows:
- Those claimants with no debt where the payable amount is Kshs 2. 3 billion. This amount will be paid immediately.
- Those with debts, but have a positive balance. The amount payable to this category is Kshs 4.7 billion but have debt of Kshs 2.0 billion. The net payable is Kshs 2.7 billion. The debts will be reconciled by KRA and any payable amount paid immediately.
- Those claimant where the debt is more than what is payable to them. The amount payable to this category is Kshs 2.7 billion but the debts amount to Kshs 11 billion. The debts will be reconciled with a view to having the claimants settle their debts with KRA.
The 2nd and final instalment amounting to Kshs 8 billion is being processed and payments will be made immediately after verification and debt reconciliation are finalized. This whole process is expected to be finalized before March 30, 2015.