Section 34

Application for registration 

(1) A person who in the course of a business –    

• (a) has made taxable supplies or expects to make taxable supplies, the value of which is five million shillings or more in any period of twelve months; or 
• (b) is about to commence making taxable supplies the value of which is reasonably expected to exceed five million shillings in any period of twelve months, 
• shall be liable for registration under this Act and shall, within thirty days of becoming so liable, apply to the Commissioner for registration in the prescribed form. 

*Provided that this section shall not apply to persons supplying imported digital services over the internet or an electronic network or through a digital marketplace in respect to a turnover threshold of five million shillings. (Finance Act 2022-wef-01-July-2022*) Deleted by  (Finance Act 2023 wef 1st-July-2023 s35) 

*Provided that a person supplying imported digital services over the internet, an electronic network or through a digital marketplace shall register whether or not the taxable supplies meet the turnover threshold of five million shillings. (Finance Act 2023 wef 1st-July-2023 s35*) 

(2) In determining whether a person exceeds the registration threshold for a period, the value of the following taxable supplies shall be excluded–

• (a) a taxable supply of a capital asset of the person; and 
• (b) a taxable supply made solely as a consequence of the person selling the whole or a part of the person’s business or permanently ceasing to carry on the person’s business. 

(3) Notwithstanding subsection (1), a person who makes or intends to make taxable supplies may apply, in the prescribed form, to the Commissioner for voluntary registration.

(4) The Commissioner shall register a person who has applied for voluntary registration under subsection (3) if satisfied that -

• (a) the person is making, or shall make taxable supplies;
• (b) the person has a fixed place from which the person’s business is conducted; 
• (c) if the person has commenced carrying on a business, the person- 
• (i) has kept proper records of its business; and
• (ii) has complied with its obligations under other revenue laws; and

• (d) there are reasonable grounds to believe that the person shall keep proper records and file regular and reliable tax returns. 

(5) The Commissioner shall issue a registered person with a tax registration certificate in the prescribed form.

(6) If the Commissioner is satisfied that a person eligible to apply for registration has not done so within the time limit specified in subsection (1), the Commissioner shall register the person.

(7) The registration of a person under subsection (1) or (6) shall take effect from the beginning of the first tax period after the person is required to apply for registration, or such later period as may be specified in the person’s tax registration certificate.

(8) The registration of a person under subsection (4) shall take effect from the date specified in the person’s tax registration certificate.

(9) The Cabinet Secretary may, in regulations, provide for the registration of a group of companies as one registered person for the purposes of the Act.

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