Kenya Revenue Authority wishes to remind privileged persons, under the Eighth schedule to the VAT Act, Non Governmental Organizations and the general public that the procedures for VAT remission are as follows:

1. AID AGENCIES

The Agencies apply for remission by completing form DA1 which is obtained from Ministry of Finance. The completed form is lodged with Ministry of Finance for approval and forwarding to KRA. The application must be accompanied by proforma invoices for the goods or services showing the description, quantity and value of the supplies.

2. EMBASSIES AND INTERNATIONAL ORGANIZATIONS

These bodies apply for remission by completing Exemption form, which is obtained at Ministry of Foreign Affairs. The completed form is lodged with Ministry of Foreign Affairs for approval and forwarding to KRA. Proforma invoices MUST be attached.

3. NON GOVERNMENTAL ORGANIZATIONS AND CHARITABLE INSTITUTIONS

These bodies apply VAT remissions directly to KRA and the application should be accompanied with the following
documents:

Proforma Invoice
NGO certificate or Registration certificate from the registrar of Societies.
Income tax exemption certificate
Donation certificate for goods or services
Letter of support or recommendation from the Commissioner of Social Services
Application letter to the Commissioner of Domestic Taxes

4. REMISSION PROCESSING

The approved forms are delivered to KRA by the Ministry or the applicant. At KRA the documents are verified to confirm that the applicant is entitled to remission and the supplies are allowed for remission. The remission is granted either by endorsement of the form or issuance of a remission certificate to authorize tax free purchase of the supplies. The process normally takes five days. The remission forms or certificate must be presented at the time of purchase for retention by the supplier to support zero rating.

5. WHEN TO APPLY FOR REMISSION

The VAT Act does not provide for refund of tax paid before remission is granted. Application for remission must therefore be made prior to purchase.

Commissioner for Domestic Taxes