Kenya Power has issued a directive to all customers who claim Value Added Tax (VAT) returns using electricity bills to update their records promptly. This move is aimed at ensuring compliance with tax regulations and improving the efficiency of the VAT claims process.
In a statement released by the utility company, customers who rely on electricity bills for VAT claims are required to provide accurate and up-to-date information. This includes ensuring their details, such as account names, tax registration numbers (PINs), and contact information, are correct. Kenya Power emphasized that discrepancies or outdated records could lead to delays or complications in processing VAT claims.
The initiative aligns with the Kenya Revenue Authority’s (KRA) broader mandate to enhance transparency and accountability in tax collection. By requiring customers to update their records, Kenya Power seeks to streamline the generation of VAT invoices that are compliant with KRA regulations.
This measure is also expected to minimize errors that could arise from inaccurate customer details, which have previously hampered seamless tax claim processes.
For businesses and individuals registered for VAT, electricity bills are a critical component of their input tax records. Claiming VAT on electricity usage enables them to offset the tax paid on business expenses against the VAT charged on their sales.
However, the process is contingent on having valid and accurate documentation. As such, customers are urged to take this update seriously to avoid potential tax compliance issues.
To facilitate the record update process, Kenya Power has made provisions for customers to verify and amend their details through various channels.
These include visiting Kenya Power offices, using the company’s customer care hotline, or leveraging online platforms such as the Kenya Power self-service portal. Customers are encouraged to complete the updates at the earliest opportunity to avoid any inconvenience.
The directive also highlights the importance of businesses maintaining proper records to avoid disputes with tax authorities. Inaccurate information on VAT invoices can lead to audits, penalties, or disallowed claims, which can negatively impact business operations.
By taking proactive steps to ensure accurate recordkeeping, Kenya Power aims to support its customers in meeting their tax obligations while fostering compliance with KRA standards. This initiative underscores the utility company’s commitment to enhancing service delivery and promoting transparency in financial transactions.
