THE VALUE ADDED TAX (REMISSION)
(CHARITABLE ORGANIZATION) ORDER, 1999.
1. This Order may be cited as the Value Added Tax (Remission) (Charitable Organizations) Order 1999 and shall come into operation on the 11th June, 1999.
2. In this Order, unless the context otherwise requires -
"charitable organization" means a non-profit making organization registered or exempt from registration by the Registrar of Societies under section 10 of the Societies Act and approved by the Commissioner of Social Services, or registered by the Non-Governmental Organizations Co-ordination Board under section 10 of the Non-Governmental Organizations Co-ordination Act, 1990 and whose income is exempt from tax under paragraph 10 of the First Schedule to the Income Tax Act.
"Commissioner-General" means the Commissioner-General of the Kenya Revenue Authority appointed under section 11 of the Kenya Revenue Authority Act.
3. The tax payable on goods including motor vehicles and computers, donated or purchased locally for donation by any person to non-profit making organisations or institutions approved by the Government for their official use or for free distribution to poor and needy persons, or for use in medical treatment, educational, religious or rehabilitation work, is remitted, subject to the conditions set out in paragraph 4. (LN 69 of 2003)
Provided that remission under this paragraph may be granted in respect of –
(i) all goods (excluding passenger motor audio-visual electronic equipment, spare parts, office furniture and other office equipment and stationery) donated or purchased for donation by any person to registered homes for poor and needy persons, subject to approval by the minister; or
(ii) maize, wheat, sugar, milk, edible vegetable fats and oils, rice, textiles, new and used clothing and footwear imported during periods of civil strife, national calamity or disaster declared under any law for the time being in force, or where they are intended for use in officially recognized refugee camps in Kenya.
4. The conditions referred to in paragraph 3 are that -
(a) an application for remission pursuant to this Order shall be lodged with the Minister through the Commissioner-General;
(b) an application under subparagraph (a) shall be accompanied by evidence that the goods to be imported or purchased for donation to the charitable organization are for the official use of the organization or are for free distribution to the poor and needy persons, or are for use in medical treatment, educational, religious or rehabilitation work or other Government approved projects;
(c) the Commissioner-General shall consider every application submitted under this paragraph and shall forward it to the Minister together with his recommendations thereon;
(d) every charitable organization in respect of which remission is granted under this order shall -
(i) (i) make quarterly returns to the Commissioner-General on all goods on which remission is granted;
(ii) (ii) at all reasonable times, make records of such goods available for examination by the Commissioner-General or by an officer authorized by him for that purpose and shall give the Commissioner-General or the authorized officer every facility necessary to inspect and audit such records;
(e) the provisions of this Order shall apply to all remissions sought or granted under item 9(1)(c) of Part A of the eighth Schedule to the Act.
5. Tax shall become payable if the goods which are the subject of this Order are used or disposed of in a manner inconsistent with the purpose for which the remission is granted.