You’re trying to file your VAT returns like you do every month, but suddenly, iTax throws up an error message. Your heart sinks as you read: “This PIN is currently under review for VAT compliance irregularities.”
If this sounds familiar, you’re not alone. Many Kenyan business owners are finding themselves on what KRA calls the “VAT Special Table” – and trust me, it’s not a table you want to be sitting at.
Let me walk you through what this means for your business and, more importantly, how to get yourself out of this situation.
What Exactly Is This VAT Special Table Everyone’s Talking About?
Think of the VAT Special Table as KRA’s timeout corner for businesses that aren’t playing by the VAT rules. It’s essentially a list where KRA places businesses that have compliance issues, temporarily blocking them from certain tax processes until they sort things out.
The system was introduced to protect legitimate businesses and crack down on VAT fraud. While the intention is good, being placed on this table can feel like your business has been put on pause – because, in many ways, it has.
Why Would KRA Put MY Business on This Table?
Before you panic, understand that there are specific reasons KRA adds businesses to this table. You’re not just randomly selected. Here are the five main culprits:
1. You’ve Been Filing Returns But Not Paying (The “Promise Breaker”)
You know that VAT you’ve been declaring every month? If you haven’t been paying it for six months or more, and KRA has tried everything to reach you or collect the debt, you’ll land on this table.
The exception? If you’ve already arranged a payment plan with KRA or made some partial payments, you should be in the clear.
2. You’re Still Using That Old Cash Register (The “Technology Resister”)
Remember when KRA told everyone to switch from ETR machines to the new eTIMS system? If you’ve been dragging your feet on this transition, this might be why you’re here. The 2020 regulations made this mandatory, and KRA isn’t playing around anymore.
3. You’ve Gone Radio Silent on Returns (The “Ghost Filer”)
Haven’t filed your VAT returns in six months or more? That’s a red flag. Even if you have nothing to declare, you still need to file those nil returns. Silence doesn’t work with KRA.
4. You’re Filing Nil But Others Are Claiming From You (The “PIN Mystery”)
This one’s interesting. You’re filing nil returns (declaring no business activity), but other businesses are claiming input tax from purchases supposedly made from you. This suggests someone might be misusing your PIN – or there’s something fishy going on.
5. KRA Found Something Dodgy in Your Books (The “Audit Surprise”)
This is the most serious one. If an audit or investigation revealed you’ve been claiming fake input taxes or using fictitious credit notes, you’ll definitely find yourself on this table.
What Actually Happens When You’re on the Special Table?
Let’s be real about what this means for your day-to-day business operations:
First, you can’t file VAT returns anymore. The system literally won’t let you. Every time you try, you’ll get that dreaded message telling you to contact your Tax Service Office.
Second, your business relationships take a hit. Other businesses can’t claim input tax from purchases made from you. Imagine you sold goods worth KSh 500,000 to a client. When they try to file their VAT return and claim their input tax, the system rejects it with “This PIN is not eligible to input tax deduction.”
Your suppliers will start asking questions. Some might even hesitate to do business with you. Nobody wants complications with their own VAT compliance.
Third, your reputation takes a beating. Word travels fast in business circles, and being on this table isn’t exactly something you want on your resume.
The silver lining? KRA has said that penalties for not filing while you’re on the special table will be handled administratively. So at least you’re not racking up late filing penalties while you sort this out.
Your Step-by-Step Game Plan to Get Off This Table
Alright, enough about the problem. Let’s talk solutions. Here’s exactly what you need to do:
Step 1: Drop Everything and Visit Your Tax Service Office
I mean it – make this your priority today. Not next week. Not when you “find time.” Today.
Find out which KRA Tax Service Office handles your area and book an appointment. If possible, go in person. Emails can get lost, calls can be ignored, but showing up demonstrates you’re serious about fixing this.
Pro tip: Go early in the morning when officers are fresh and queues are shorter. Bring a notepad and write down everything they tell you.
Step 2: Get the Full Story
Don’t assume you know why you’re on the table. Ask the KRA officers to explain exactly which category you fall under and what triggered your placement. Sometimes there might be errors in the system, or perhaps someone has been misusing your PIN without your knowledge.
Get copies of any documents or records KRA has that led to your placement. You have a right to see this information.
Step 3: Take Action Based on YOUR Specific Situation
Your next move depends entirely on why you’re there:
If You Owe Money:
- Be honest about your financial situation
- Propose a realistic payment plan you can actually stick to
- If you’re struggling, explain why – maybe business has been slow, maybe you had unexpected expenses
- Show your bank statements to prove you’re serious about paying
- Make that first payment immediately, even if it’s small
If You Haven’t Switched to eTIMS:
- This is probably the easiest fix
- Your TSO will help you get onboarded onto eTIMS
- The process typically takes a few days
- Make sure you have your business documents ready (KRA PIN, business registration, ID)
- Don’t leave until you understand exactly what you need to do
If You Haven’t Been Filing:
- Time to catch up on all those missing returns
- Hire an accountant if you need to – it’s worth the investment
- File all outstanding returns as quickly as possible
- Set up reminders so you never miss a deadline again
If You’ve Been Filing Nil But There Are Claims Against You:
- This could be fraud – someone might be using your PIN illegally
- Report this to KRA immediately
- Gather evidence of your actual business activities
- Check your iTax portal regularly to see who’s claiming against you
- Consider filing a police report if you suspect identity theft
If You’re a “Missing Trader”:
- This is serious – you need professional help
- Hire a tax consultant or lawyer who specializes in KRA matters
- Prepare for a thorough audit
- Gather all your invoices, receipts, bank statements, and transaction records
- Be prepared to prove every transaction is legitimate
- This will take time and money, but it’s necessary
Step 4: Build Your Evidence File
Documentation is your best friend right now. Create a folder (physical and digital) with:
- All sales invoices from the relevant period
- All purchase receipts and invoices
- Bank statements showing business transactions
- Previous VAT returns (both filed and copies of payments made)
- Any correspondence with suppliers or customers
- Payment receipts for any VAT payments you’ve made
- eTIMS registration documents (if applicable)
- Your business registration documents
The more organized you are, the faster this process will go.
Step 5: What If Your Supplier Is on the Table?
Here’s a tricky situation many business owners face: You bought goods from a supplier, they issued you a proper invoice, but then they ended up on the special table. Now you can’t claim your input tax.
There’s actually hope here. If your supplier was placed on the table for not paying (PRWP category) but they HAD declared your sale in their VAT return, you can apply to your TSO to have your input tax claim approved.
You’ll need:
- The original tax invoice from your supplier
- Proof of payment (bank statements, M-Pesa receipts, cheques)
- Evidence that the goods/services were actually delivered
- Any other documentation required under Section 17(2) of the VAT Act 2013
Step 6: Stay on Top of It
Don’t just submit your documents and disappear. Follow up weekly:
- Call your assigned officer
- Send polite email reminders
- Visit in person if you don’t hear back
- Keep records of every interaction (dates, names, what was discussed)
Getting off the special table isn’t automatic. You need to be persistent (but polite).
Managing Your Business Relationships During This Time
Let’s talk about the elephant in the room – what do you tell your customers and suppliers?
Be proactive and honest. If key business partners are affected, reach out to them before they come asking questions:
“Hi [Name], I wanted to give you a heads up that we’re currently working with KRA to resolve a compliance issue. We’ve been placed on their VAT Special Table temporarily, which means you won’t be able to claim input tax from purchases made from us right now. We’re actively working on resolving this and expect to be cleared within [timeframe]. I’ll keep you updated on our progress.”
This approach:
- Shows transparency
- Demonstrates you’re handling it professionally
- Gives them time to plan (they might need to adjust their cash flow)
- Maintains trust in your business relationship
How to Never End Up Here Again
Once you’re off that table, you never want to go back. Here’s your prevention checklist:
Set Up Automatic Reminders
Use your phone calendar, Google Calendar, or project management tools to remind you:
- 5 days before VAT return due date
- 2 days before payment deadline
- Day before any KRA deadline
Implement a Monthly Tax Routine
Pick a specific day each month (like the 15th) where you:
- Review all transactions from the previous month
- Prepare your VAT return
- File and pay immediately
- Save all confirmation receipts
Use Technology
- Sign up for eTIMS if you haven’t already (seriously, do it now)
- Consider accounting software like QuickBooks, Zoho Books, or even Excel templates
- Enable SMS and email notifications from iTax
- Keep digital copies of all tax documents in cloud storage
Regular PIN Checkups
Once a quarter, log into iTax and:
- Check your compliance status
- Review who’s claiming input tax against you
- Verify all your returns show as filed
- Confirm there are no suspicious activities
Build a Relationship with KRA
I know, I know – nobody wants to hang out at KRA. But consider:
- Attending KRA taxpayer education seminars (they’re actually quite helpful)
- Saving the contact of a helpful officer at your TSO
- Joining legitimate taxpayer WhatsApp groups where people share updates
Keep Cash Flow for Taxes Separate
This is crucial. When you collect VAT from customers, that money isn’t really yours – it’s KRA’s.
Open a separate bank account or at least use a money market fund to set aside tax money. When payment time comes, you won’t be scrambling or choosing between paying suppliers and paying taxes.
Hire Professional Help When Needed
If numbers aren’t your thing, hire a bookkeeper or accountant. The cost of professional help is way less than the cost of non-compliance. A good accountant will:
- Ensure timely filing
- Catch errors before KRA does
- Keep you informed of new regulations
- Handle communication with KRA if issues arise
Understanding Why KRA Does This
Before you get too frustrated with KRA, understand the bigger picture. The VAT Special Table actually serves legitimate purposes:
It protects businesses like yours from people who fraudulently use business PINs to claim fake input taxes. VAT fraud costs the government (and by extension, all of us) billions of shillings annually.
It creates a level playing field. When everyone plays by the rules, compliant businesses aren’t competing with those who dodge taxes and can therefore undercut prices unfairly.
It helps identify system errors. Sometimes VAT obligations are added to PINs erroneously. This system helps catch and correct those mistakes.
The goal isn’t to punish businesses – it’s to ensure everyone is playing fair.
Real Talk: The Emotional Side of This
Let’s be honest – finding out you’re on this table can be stressful, embarrassing, and scary. You might feel:
- Angry at KRA
- Embarrassed in front of business partners
- Worried about your business survival
- Overwhelmed by the bureaucracy
These feelings are completely valid. But don’t let them paralyze you. Channel that energy into action. Remember:
This is fixable. Thousands of businesses have been on this table and gotten off.
You’re not alone. Many business owners face tax compliance challenges. It doesn’t make you a bad person or a failed entrepreneur.
It’s a learning opportunity. Once you get through this, you’ll have much better systems in place.
What NOT to Do
In your panic to fix things, avoid these mistakes:
❌ Don’t ignore it hoping it goes away – It won’t. It’ll only get worse.
❌ Don’t try to bribe KRA officers – This is illegal and will make your situation infinitely worse.
❌ Don’t file false information to get off the table – KRA will audit, and you’ll face criminal charges.
❌ Don’t start a new business to avoid this – Your tax issues will follow you, and you’ll now have TWO businesses with problems.
❌ Don’t bad-mouth KRA on social media – It might feel good in the moment, but it won’t help your case and might actually hurt it.
❌ Don’t give up on your business – This is a bump in the road, not the end of the road.
Quick Reference: Your Action Checklist
Print this out and check off each item:
- [ ] Identify which TSO handles my area
- [ ] Book appointment or visit TSO in person
- [ ] Bring ID, PIN certificate, and any relevant tax documents
- [ ] Ask officer why I’m on the special table
- [ ] Get list of specific requirements to be removed
- [ ] Gather all supporting documentation
- [ ] Take immediate corrective action (pay, file, register for eTIMS, etc.)
- [ ] Submit all required documents to TSO
- [ ] Get acknowledgment receipt or email confirmation
- [ ] Set weekly follow-up reminder
- [ ] Inform affected business partners
- [ ] Set up systems to prevent future non-compliance
- [ ] Celebrate when I’m removed from the table!
Resources That Can Help You
KRA Contacts:
- General Inquiries: 0711 099 999
- Email: callcentre@kra.go.ke
- iTax Help Desk (available in iTax portal)
Useful Links:
- Find your Tax Service Office: Check KRA website under “Contact Us”
- eTIMS registration: Available through iTax portal
- Tax education materials: www.kra.go.ke
Professional Help:
- Consider joining ICPAK (Institute of Certified Public Accountants of Kenya) events
- Kenya National Chamber of Commerce and Industry offers business support
- Your local business association might have members who’ve dealt with this
The Bottom Line
Being placed on KRA’s VAT Special Table feels like your business world is ending, but it’s really just a compliance speed bump. Yes, it’s inconvenient. Yes, it affects your operations. Yes, it’s stressful.
But here’s what it’s not: It’s not permanent. It’s not the end of your business. And it’s not something you can’t fix.
The businesses that successfully get off this table share one common trait: They take immediate action. They don’t wait, they don’t make excuses, and they don’t hide. They walk into their Tax Service Office, own up to whatever the issue is, and work with KRA to resolve it.
Your business is worth fighting for. This is just another challenge in your entrepreneurial journey – and like the others, you’ll get through it.
So take a deep breath, make that appointment with your TSO, and start checking items off that action list. Three months from now, this will be a story you tell other business owners to help them avoid the same mistake.
