The Kenya Revenue Authority (KRA) is expected to make 66,269 pins dormant effective from Thursday this week.
The owners of the pins who include individuals and business entities are set to also see their VAT obligations deregistered and cancelled.
At the same time, affected tax payers will be barred from charging VAT on their supplies and will face a further barrier in making input VAT claims on supplies.
The frozen pins relate to tax payers who have persistently failed to file returns with the tax man.
“Deregistering or cancelling of VAT obligations is a continuous excise and will affect taxpayers who perennially fail to file their VAT monthly returns or those who persistently file nil VAT returns, among others,” KRA said in a public notice.
“All VAT registered taxpayers are therefore advised to comply with their tax obligations to avoid deregistration or other punitive enforcement measures as provided in the tax statutes.”
Deregistered taxpayers are not however granted immunity from past tax obligations.
“Deregistred taxpayers will remain liable for any acts done or omitted while they were registered for VAT obligation. Taxpayers whose VAT obligations are cancelled are reminded that charging VAT without an active VAT registration is an offence,” added KRA.
The deregistered taxpayers will retain their KRA pins but will not unable to transact with the now frozen accreditation’s.