Small traders spared VAT obligations

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The National Treasury building in Nairobi in this picture taken on March 15, 2023. PHOTO | DENNIS ONSONGO | NMG

The Treasury plans to increase the revenue threshold for a trader to qualify as an agent for collecting value-added tax in what will be the first review in more than one and a half decades.

Under the draft Medium Term Revenue Strategy, which will run between July 2024 and June 2027, the Treasury has proposed to review upwards the current requirement for a trader to have a minimum of Sh5 million in annual sales to qualify for VAT obligations.

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