Understanding How KRA Zero rated VAT Works

Accounting for VAT requires a sound understanding of how the VAT concept works.  Failure to apply the right rules when calculating the tax liability can lead to fines which are detrimental to profitability.  The Kenya Revenue Authority (KRA) provides a clear guidance on accounting for zero-rated and exempt goods. Zero rating refers to the supply of goods taxable at the rate of 0%.  Suppliers of these…

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Why Should Kenyan Small and Medium Enterprises (SMEs) Outsource Accounting Services?

Businesses in today’s environment have embraced outsourcing accounting due to its positive impact on performance.  Outsourcing is concerned with contracting an external entity to perform non-core functions in the business process.As a result, the organization avoids maintaining an internal department to perform the concerned function. The accounting function is non-core in a business process and SMEs can outsource accounting services to enable them to focus on…

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