High RiskVAT · Check VAT-003
11 suppliers representing KES 2.8M in claimed input VAT are not registered on eTIMS, deduction disallowance risk is certain on audit.
Cross-reference of your purchase register against KRA's eTIMS registry identified 11 suppliers (KES 2.8M aggregate input VAT claimed, FY2025) who are not registered on eTIMS. Under Section 17(3) of the VAT Act, input VAT is disallowed where the supplier cannot be verified, regardless of whether goods were delivered or payment was made. KRA's cross-check at filing (from January 2026) makes detection automatic.
Legal basis
Section 17(3), VAT Act · KRA eTIMS Public Notice, November 2025
Action Required
Obtain eTIMS registration confirmation from all 11 suppliers within 30 days. Consider withholding payments to non-compliant suppliers pending registration. Quantify and provision for the KES 2.8M exposure in your next management accounts.