The Kenya Revenue Authority (KRA) issued a new order to oil marketers seeking to have electronic tax register receipts issued to all motorists fueling at their stations.
The directive comes following the signing of the Finance Bill by President Uhuru Kenyatta which includes an 8 percent VAT on all petroleum products.
Fuel stations that fail to comply with the new directive face stiff penalties from KRA.
The taxman revealed that undercover purchase agents would be used to identify stations that failed to issue all motorists with receipts.
“Customers should not be demanding ETRs. Sometimes you will find KRA investigators doing mock purchases like normal consumers but with an agenda to find out who is not issuing ETRs.
"As soon as we fail to get it, the police will be waiting for you. Kindly always find yourself on the right path to avoid non-compliance penalties,” stated Chief Manager for Domestic Taxes Judith Njagi.
She was speaking at a stakeholder engagement forum for petroleum dealers held at Times Tower on Thursday.
Stations were asked to ensure that other items sold in their shops also had VAT clearly indicated.
It is considered rare for petrol stations to issue receipts, with many outlets doing so only when customers ask for them.
KRA believes that this could also be used to avoid proper financial reporting practices.
