KRA tips Green Channel to ease VAT refunds

The Kenya Revenue Authority (KRA) has tipped the Green Channel to hasten VAT refunds, thereby eradicating bottlenecks and creating a more conducive environment for business.

Speaking during the Ninth Tax Round Table meeting with members of the Kenya Private Sector Alliance (KEPSA), KRA Commissioner General affirmed the Authority’s commitment in simplifying its processes to facilitate their businesses.

“To ensure that VAT refunds are processed on time, we have put in place systems that enhance transparency and a clear queuing process through the Green Channel framework,” stated the Commissioner General.

The framework will prioritize processing of applications from Green Channel applicants with minimal verification subject to post payment audit. The framework eases necessity for time – consuming 100 percent confirmation of exports before refund approval.

The Commissioner General also said that tracking of transit goods under ECTS system was decommissioned and all tracking of transit goods are under Regional Electronic Cargo Tracking System (RECTS) jointly used by Kenya Revenue Authority and Uganda Revenue Authority.

He also noted that KRA will continuously automate its processes in line with its facilitative approach to tax administration.

During the roundtable, KEPSA lauded KRA’s consistency in holding dialogue platforms which it said gives the body an opportunity to strike a balance between the right regulation required for the country to raise the necessary taxes and at the same time ensure the growth of the private sector in the country.

KRA assured the stakeholders of a fair tax audit process. KRA said that it always issues a notice to taxpayers giving them at least 30 days to prepare before the audit. This time is also flexible upon taxpayer’s request or engagement with KRA.

KEPSA further applauded KRA’s responsibility in trade facilitation which has been enhanced especially at the port through various initiatives such as expedition of cargo scanning and the underway automation of Customs processes.


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