If you registered for PAYE or VAT by mistake, or maybe you once had the obligation but your business is no longer operational, this guide is for you.
Perhaps you closed your company, or you’re still running but:
- You no longer have employees (PAYE).
- Your sales are below Ksh 5 million annually (VAT).
- Or you simply don’t qualify for these obligations anymore.
Whatever the case, staying registered for wrong or unnecessary obligations can cause you penalties and compliance issues with KRA. The good news is you can cancel PAYE and VAT obligations easily through iTax.
- You don’t supply taxable goods/services.
- Your annual sales are below Ksh 5 million (no longer VAT-eligible).
- VAT was added in error during registration.
- You don’t employ staff anymore.
- You never had employees to begin with, but PAYE was added in error.
If you don’t cancel, KRA will still expect monthly returns and if not done on time the penalties will continue to pile up.
If you have unfiled returns, remember we can help you sort in minutes. Reach out now!
1. File All Pending Returns
Even if your returns are nil, they must be filed up to date.
KRA won’t allow cancellation if your filing history is incomplete.
2. Clear Any Unpaid Penalties or Taxes
Settle all outstanding balances linked to the obligation you want to cancel.
You cannot cancel an obligation if there are unpaid liabilities.
3. Access to Your iTax Account
Log in credentials for iTax are required to submit your request.
4. Supporting Documents (if applicable)
- For VAT: Sales records showing turnover below Ksh 5 million.
- For PAYE: Proof that you don’t have employees (e.g., closure notice, business status documents).
1. Log in to iTax
Go to iTax Portal and log in with your PIN and password.
2. Navigate to Registration
Click on 'E-Cancellation' under the Registration tab.
3. Select What to Cancel
Choose whether you want to cancel your PIN or a specific tax obligation (PAYE or VAT).
4. Give Your Reasons
Fill the online form, attach a Letter addressed to KRA and additional supporting documents
- For VAT: Sales records or audited accounts showing turnover below Ksh 5 million, or business closure certificate.
- For PAYE: Employee separation/termination records, signed statement confirming no employees, business closure documents (if applicable), bank statements as proof of sales.
5. Submit Application
Your request will be sent to KRA for review, and download the acknowledgement receipt.
6. Actively follow up with KRA on email and calls or visit their offices (your Tax station)
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