The Kenya Revenue Authority (KRA) introduced the VAT Special Table in June 2025 as a compliance tool integrated into the iTax system.
Small traders who fail to comply with VAT obligations can now be placed on this table, giving KRA the authority to track and limit their business activities until compliance is restored.
This tool is designed to monitor VAT-registered taxpayers who show patterns of non-compliance and temporarily blocks them from filing VAT returns until issues are resolved.
Who Is Targeted by KRA
Initially, KRA had identified five categories of taxpayers eligible for the Special Table.
These include taxpayers who file VAT returns but fail to make payments for six consecutive months, unless on a payment plan or making partial payments.
Traders under the Tax Invoice Management System (TIMS or eTIMS) who fail to transition as required by the VAT (Electronic Tax Invoice) Regulations, 2020, are also included.
Taxpayers who have not filed any VAT return for six months or more, and those filing nil returns for six months or more while claiming input tax using their PINs, are also eligible. Traders filing nil returns without input tax claims are excluded.
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The Special Table also targets taxpayers involved in VAT fraud, including those who claim fictitious input tax or use fraudulent credit notes.
Impact on Taxpayers and Trading Partners
Taxpayers listed on the Special Table cannot file VAT returns while flagged. Input VAT claims are also blocked, preventing suppliers and trading partners from claiming VAT using the taxpayer’s PIN until the issues are resolved.
Additionally, taxpayers who fail to transition to eTIMS must visit their Tax Service Office (TSO) for onboarding support.
In cases where a taxpayer declared transactions but failed to make payments, trading partners can request approval of input VAT claims with proper documentation under Section 17(2) of the VAT Act, 2013.
Purpose and Compliance Benefits
The VAT Special Table is designed to improve overall VAT compliance, reduce PIN misuse, and help businesses avoid risky suppliers.
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It also allows KRA to correct VAT obligations that are no longer applicable and encourages non-compliant traders to meet their obligations promptly.
To be removed from the Special Table, taxpayers must contact their TSO, regularise outstanding obligations, and maintain proper documentation.
The initiative is part of KRA’s ongoing effort to strengthen tax compliance among small traders and ensure that VAT-registered businesses operate within the law.
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