Have you been appointed as a Withholding VAT agent?

Don't panic!

A few days ago, I came across complaints from traders who had been appointed as KRA Withholding VAT Agents.

The reaction was almost immediate:

“How do I get myself removed?”

And honestly, I understand the frustration.

Because being appointed means you're no longer just running your business.

You're also withholding VAT on qualifying purchases and remitting it to KRA.

But here's the part many businesses may not realise:

You can't simply decide you're done.

Under Section 42A of the Tax Procedures Act, the Commissioner can appoint a person as a Withholding VAT Agent.

And there is a formal process for revocation.

KRA's guidelines provide for revocation in certain circumstances, including where:

→ The business has ceased operations.

→ The business has achieved 100% TIMS/eTIMS compliance for six consecutive months, subject to the applicable conditions.

→ Certain public bodies or privileged institutions qualify and are not carrying on business.

But here's the part I really want businesses to remember:

Applying for revocation does not, by itself, end your obligation.

KRA's guidelines state that you continue withholding and remitting the required 2% until you are formally notified that the appointment has been revoked. The revocation takes effect from the date indicated on the Withholding VAT Agent Cancellation Notice.

And there's a recent example worth paying attention to.

In Buffloc Investments Ltd v Commissioner of Legal Services & Board Co-ordination, decided by the Tax Appeals Tribunal in February 2026, the taxpayer had applied for revocation but did not have a formal cancellation notice.

The Tribunal held that the appointment remained in force and upheld the withholding VAT assessment.

So if that KRA appointment lands in your inbox:

❌ Don't panic.

❌ Don't simply ignore it.

✅ Check your iTax status.

✅ Understand what the appointment means for your business.

✅ If you believe you qualify for revocation, follow the formal process.

✅ And continue complying until KRA formally notifies you otherwise.

Because sometimes the biggest tax mistake isn't getting the calculation wrong.

It's assuming you're no longer responsible...

before KRA has formally said so.

If you're a business owner and you've recently been appointed as a Withholding VAT Agent, don't just file the notice away.

Understand the obligation first.

Your tax records should always tell you not only what you've filed, but what you're actually responsible for.