Businesses with annual sales valued below Sh8 million could be relieved from having to register as Value Added Tax (VAT) agents, as the Finance Bill proposes to raise the threshold from those making Sh5 million in annual turnover.
The Finance Bill 2024 proposes to amend Section 34 of the VAT Act, 2021, whose impact would be to relieve businesses with annual turnovers between Sh5 million and Sh8 million- which have previously been collecting VAT on behalf of the government, of the burden.
