This article breaks down what the VAT Special Table is, who it affects, and what you need to do if you’ve been added to it.
What is the VAT Special Table?
The VAT Special Table is a monitoring mechanism that flags VAT-registered taxpayers who demonstrate specific patterns of non-compliance. Once flagged, these taxpayers are restricted from filing VAT returns through the iTax portal until the issues are resolved.
Who Can Be Added to the VAT Special Table?
KRA has identified five key categories of taxpayers who may be placed on the VAT Special Table:
1. Payment Returns Without Payments (PRWPs): These are taxpayers who consistently file VAT returns but fail to make any payments for six consecutive months, even after debt recovery efforts. Exceptions are made for those with payment plans or partial payments.
2. TIMS/eTIMS Non-Compliant Traders: Taxpayers who haven’t complied with the legal requirement to transition to the Tax Invoice Management System (TIMS) or eTIMS, as outlined in the VAT (Electronic Tax Invoice) Regulations, 2020.
3. Non-Filers: Those who haven’t filed any VAT return for six months or more.
4. Nil-Filers with Input Tax Claims: These are traders who file nil returns for six months or more, yet input tax is being claimed using their PINs. This does not include traders who file nil returns but have no input tax claims associated with them.
5. Missing Traders: Taxpayers involved in VAT fraud, particularly those found to: ○ Claim fictitious input tax; or ○ Use fictitious credit notes.
Benefits of the VAT Special Table
For both taxpayers and the tax system, this initiative offers clear benefits:
- Reduces PIN misuse by fraudsters.
- Helps correct VAT obligations that are no longer applicable.
- Encourages compliant trade by helping businesses avoid risky suppliers.
What Happens If You’re Added to the Special Table?
- Return Filing is Blocked You’ll receive this message on iTax: “This PIN is currently under review for VAT compliance irregularities. Please contact your respective KRA Tax Service Office (TSO).”
- Penalties Are Reviewed Internally If you can’t file because you’re flagged, KRA will address penalties administratively.
- Input VAT Claims Are Blocked Your suppliers and trading partners will not be able to claim input VAT using your PIN until the issues are resolved.
- 4. Some Exceptions Apply If you’re flagged as a PRWP but actually declared the transaction in your VAT return, your trading partner can still apply to their TSO to have their input VAT claim approved—provided proper documentation is submitted as required under Section 17(2) of the VAT Act, 2013.
- For TIMS/eTIMS Non-Compliance If the reason you’re flagged is failure to transition to eTIMS, you must visit your TSO for onboarding support.
What Should You Do If You’re On the Special Table?
If your PIN is on the VAT Special Table:
- Contact your Tax Service Office immediately for support and next steps.
- Regularize your tax obligations (file outstanding returns, settle pending payments, transition to eTIMS).
- Keep proper documentation in case you’re asked to validate transactions for suppliers.
By Commissioner for Micro and Small Taxpayers
