VAT Trivia

1: What is the maximum duration allowed for a trader to claim input tax?

3 months

1 month

6 Months

12 months

Refer to Sec 17(2) VAT act 2013

Show hint

Correct! Wrong!

2: Which of the following documents cannot be used in claiming input tax

Original invoice

Customs entry

A debit note

Remittance advice

Correct! Wrong!

Refer to Sec 17(3) VAT act 2013

3: How is a newly registered person supposed to deal with input tax on inventory held at the date of registration?

Input tax on items acquired prior to registration is not claimable

Launch a claim within 3 months of registration for supplies acquired within 24 months immediately preceding registration

Launch a claim within 1 month of registration for supplies acquired within 12 months immediately preceding registration

Claim the input tax in the next VAT return

Correct! Wrong!

Refer to Sec 18 VAT act 2013

4: In case of overpayment of VAT, the maximum duration to launch a refund claim is

1 month

3 months

12 months

At the discretion of the commissioner

Correct! Wrong!

Refer to Sec 30 VAT act 2013

5: In case of a bad debt written off, an application for refund must be made within

3 years from the date of the supply

4 years from the date of the supply

5 years from the date of the supply

1 year from the date of the supply

Correct! Wrong!

Ref: Tax laws amendment act reduced the period from 5 years to 4 years

6: A bad debt written off and refunded by the commissioner is subsequently recovered, the registered person should

Refund the commissioner within 30 days with 2% interest per month for further delay

Refund the commissioner within 60 days with 1% interest per month for further delay

Refund the commissioner within 30 days with 1% interest per month for further delay

Refund the commissioner immediately with 2 % interest per month for further delay

Correct! Wrong!

Refer to Sec 31 VAT act 2013

7: Njeuri a registered trader is convicted for interfering with his supermarket cash registers such that they exempt taxable goods. He is liable to

Imprisonment for a term not exceeding 5 years or a fine not exceeding Sh.1000, 000

Imprisonment for a term not exceeding 3 years or a fine not exceeding Sh.800, 000

Imprisonment for a term not exceeding 5 years and fine not exceeding Sh.1000, 000

Imprisonment for a term not exceeding 2 years or a fine not exceeding Sh.200, 000

Correct! Wrong!

Refer to Sec 41 VAT act 2013

8: A trader not registered for VAT charges tax on supply of goods. The trader shall

Be required to refund the customer

Be registered immediately for VAT

Pay the tax to the commissioner within 7 days

Wait for the determination of the tax tribunal

Correct! Wrong!

Refer to Sec 42(2&3) VAT act 2013

9: The VAT classification of bottled water is

Standard rate-16%

Zero rated

Exempt

Correct! Wrong!

Ref: Only piped water is exempt (first schedule-95

10:

Standard rate-16%

Zero rated

Exempt

Correct! Wrong!

Ref: Was initially exempt but now taxed under TLAA 2020

11: A registered person shall not deduct input tax if the tax relates to

Purchase of inventory

Construction costs of a building

Acquisition of furniture

Acquisition of passenger cars

Correct! Wrong!

VAT act 2013 Sec 17(4)

12: A registered person shall not deduct input tax if the tax relates to

Staff training

Digital services

Entertainment services

Professional security services

Correct! Wrong!

VAT act 2013 Sec 17(4)

13: VAT on digital services applies to

Non-resident persons making supplies to consumers based in Kenya

Any person making supplies to consumers based in Kenya

Suppliers based in Kenya making supply of digital services anywhere in the world

Internet service providers facilitating online transactions

Correct! Wrong!

14: The VAT classification of exported services is

Standard rate-16%

Standard rate -8%

Zero rated

Exempt

Correct! Wrong!

Ref: New after cocacola case, Finance act, 2021

15: The VAT classification of bread is

Standard rate-16%

Standard rate -8%

Zero rated

Exempt

Correct! Wrong!

Zero rated VAT act 2013 second schedule (13A)

16: Which of the following facts is not true about VAT

VAT on credit transactions is payable only when cash is collected

Its is payable on monthly basis

VAT is a multi-stage tax

Excess VAT payment is claimable

Correct! Wrong!

Ref: VAT act 2013

17: It is within the right of a VAT registered person to do the following except

Get refund

Get free access to the commissioner

To file no returns when no transactions are made

Demand information to be treated in confidence

Correct! Wrong!

Ref: VAT act 2013

18: A VAT Registered person is required to keep records for

3 years

5 years

7 years

2 years

Correct! Wrong!

Ref: VAT act 2013

19: Which statement best describe the term VAT Automated Audit (VAA)

An artificially intelligent way of capturing Vat details on online transactions

Integrating systems used by merchants with KRA database to capture VAT real-time

Matching input tax invoices against respective output tax invoices from suppliers

A way of integrating all branches of one entity into one

Correct! Wrong!

Vat Automated Audit- VAA

20: Which statement best describe the term Tax integrated Management systems -TIMS

An artificially intelligent way of capturing Vat details on online transactions

Integrating systems used by merchants with KRA database to capture VAT real-time

Matching input tax invoices against respective output tax invoices from suppliers

A way of integrating all branches of one entity into one

Correct! Wrong!

Ref: http://127.0.0.1/taxdony/vat-electronic-tax-invoice-tims/

21: VAT withholding agents are required to withhold VAT at

2%

6%

16%

0%

Correct! Wrong!

Ref: Tax Procedures Act 2015, Sec 42A

22: A supplier invoiced goods in April 2021, having received a deposit for those goods in February 2021. The goods were actually delivered in June 2021 when the final instalment was made. The VAT on this transaction is payable by

20th February 2021

20th March 2021

20th April 2021

20th June 2021

Correct! Wrong!

Ref: VAT act 2013, sec 12

1: What is the maximum duration allowed for a trader to claim input tax?

2: Which of the following documents cannot be used in claiming input tax

3: How is a newly registered person supposed to deal with input tax on inventory held at the date of registration?

4: In case of overpayment of VAT, the maximum duration to launch a refund claim is

5: In case of a bad debt written off, an application for refund must be made within

6: A bad debt written off and refunded by the commissioner is subsequently recovered, the registered person should

7: Njeuri a registered trader is convicted for interfering with his supermarket cash registers such that they exempt taxable goods. He is liable to

8: A trader not registered for VAT charges tax on supply of goods. The trader shall

9: The VAT classification of bottled water is

10:

11: A registered person shall not deduct input tax if the tax relates to

12: A registered person shall not deduct input tax if the tax relates to

13: VAT on digital services applies to

14: The VAT classification of exported services is

15: The VAT classification of bread is

16: Which of the following facts is not true about VAT

17: It is within the right of a VAT registered person to do the following except

18: A VAT Registered person is required to keep records for

19: Which statement best describe the term VAT Automated Audit (VAA)

20: Which statement best describe the term Tax integrated Management systems -TIMS

21: VAT withholding agents are required to withhold VAT at

22: A supplier invoiced goods in April 2021, having received a deposit for those goods in February 2021. The goods were actually delivered in June 2021 when the final instalment was made. The VAT on this transaction is payable by

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