Fuel stations risk taxman audits as Ruto VAT order triggers compliance rush

Fuel stations are under pressure to update systems to comply with new VAT invoicing rules issued by the Kenya Revenue Authority.

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The Kenya Revenue Authority (KRA) has directed oil marketing firms to reconfigure their invoicing systems to align with the reduced eight percent value-added tax (VAT) on fuel, intensifying a compliance race and exposing petrol stations to audits.

The directive, issued through KRA’s eTIMS/TIMS operations office, requires fuel stations using third-party tax invoicing systems to introduce a new tax category and update product classification codes.

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