Government Vat in Kenya help!!!!!!!!!

Hello.
I have booked a safari Kenya-Tanzania though Safari Seekers for august , an agency recommended by loney planet .I almost paid the half of the total money of the safari and suddenly I have received a mail from this agency saying that the prices will go up a 16% for the new law. I told them I am not agree as I booked the safari before the received this new vat circular.
In Europe an ageny cannot do that as you cannot go up prices with retroactive effect.
do you know something about that??.
I wait your comment. I enclosed you the VAT circular that the Kato sent to safari seekers.

thanks so much

TO : All KATO Members

Dear Member,

UPDATE ON VAT

Following the last circular, we wish to update you as follows: -

1. We have confirmed that as per the current law, the effective date for the VAT proposed to be imposed on transportation of tourists is 13th June 2008.

2. You must be registered for VAT before you can charge it.

3. The Tourism Minister has already taken up the issue with the Finance Minister (see attached Newspaper clipping) and we will be following up closely with Hon. Balala to chart the way forward.

4. Under the auspices of KTF, we have received quotations from reputable Audit Firms for purposes of preparing a Lobby paper to forward to Treasury. The Lobby Paper will address all the concerns so far raised by members regarding the VAT.

It is hoped to commission this lobby as soon as the funding aspect is resolved.

At this point in time, there is a problem in view of the fact that the VAT has already been legally gazetted. Whereas those not registered for VAT are not able to comply immediately, those who are already registered are in a vulnerable position as regards the law.

We re-assure members that we are doing all we can to fast-track the process of engaging the relevant authorities, with the sole objective of reversing this tax – either back to exemption or zero rating.

As soon as there is a positive development (e.g. the meeting with Treasury or the Lobby paper commissioned), we will update members.

Yours Sincerely,

Fred Kaigua

CHIEF EXECUTIVE

I agreed to hiring a jeep and driver off a different company a couple of months ago and they mentioned that this law might come in but said they they wouldn't charge me this 16% because we had agreed before. So I would threaten to find another supplier if they won't back down on that - no way are they allowed to take half your cash and then change the deal. In fact for even attempting to do so I would demand your money back and go with someone else as that too me would indicate they might try and wrangle more stuff out of you once your tour has started. I'm going with Upgrade tours and car hire and they offer good rates and have been excellent so far.

The earlier troubles and lack of tourists mean many smaller safari companies are financially unable to absorb the extra tax imposed on them by their Government. Yes, to take it on the chin would be the right thing to do, but they are down to the bone financially and this would probably send them under. This 16% tax isn't going into the company's coffers, but the Government whose honourable members are also insisting they don't have to pay income tax. If they are trying to win back tourists, I say its a little short-sighted!

hi..they have tp pay 16% vat on any invoices they do after the budget wa sread..so if tehy had not already issued your invoice before as you had not paid than they have to charge the 16% vat

we have already paid a deposti( 5364 usd) by bank transfer wich means the half price of the safari and the total price for the flights to zanzíbar. it means that we of course have not the invoice, but the deal does include everthing. they did not say it would have extra tax .

I don't know about the specifics of the legislation in question, but I seem to remember that there were VAT registration thresholds to be considered. Hypothetically, the legislation should only affect the large tour companies - as their turnover will exceed the VAT cut-off limits, hence they have an obligation to register their companies (with the VAT authorities) charge it and remit it on to the government.

However tourists should beware of small scale tour operators who will take advantage of unsuspecting clientèle by charging the VAT and using this to bolster their own pockets - as they are not remitting it anywhere!

Regards

Mwenyeji

I have received another mail this morning saying that they will charge just 80 usd regarding vat on transport. I thinks I cannot do anything else. seems a littel frustating. but at least is they will not charge a 16 % more for the whole safari.
thanks so much for all your help.
alicia

Tax has been waived.......

http://www.bdafrica.com/index.php?option=com_content&task=view&id=8668&Itemid=5809