The Finance Act 2014 reintroduced withholding VAT (WHVAT) with effect from 19 September 2014.
VAT is withheld on taxable supplies to government ministries, departments or agencies.
The rate of WHVAT is 6% of the taxable supplies.
WHVAT does not apply to exempt supplies, zero-rated supplies and donor aid funded projects.
KRA has published notices in national newspapers providing directions on collection, accounting and remittance of WHVAT.
See the Tax Alert below for more information: