Powers of the Commissioner

The VAT Act empowers the Commissioner to administer the tax. The Commissioner also has powers to delegate these powers to authorised officers within the Department.

These powers include: -

(a) To enter business premises without any warrant during normal working hours or at any time when there is evidence of fraud.
(b) To examine premises, books, documents and records
(c) To have and exercise all the rights, powers, privileges and protection of a police officer.
(d) To require security for VAT liability.
(e) To levy distress on goods and chattels.
(f) To take samples.
(g) To have priority of tax in bankruptcy, winding up, receivership and distribution of assets in death.
(h) To require production of any documents useful for investigations with regard to assessments, refund and offences.
(I) To apply for an order to charge the VAT debt against land or property owned by a registered person
(j) To assess the amount of tax due in case of failure by the taxable person to do so.
(k) To collect the tax due.

De-registration

If you cease to make taxable supplies you should without delay notify the Commissioner of the date of cessation and furnish him with a return showing details of all goods in stock within thirty (30) days from the date you ceased to make taxable supplies. If the value of your taxable supplies in any twelve (12) months is less than Kshs.5000,000/= the registered person shall notify the commissioner of the value of his supplies and shall be subject to the provisions of the Turnover Tax under section 12c of the Income Tax Act.  

Other reasons for de-registration include- death, insolvency, goods becoming non-taxable, and legal incapacitation. Where such changes occur, the registered person, the one charged with liquidation or the executor or any other person must notify the Commissioner without delay.