The KRA is empowered to automatically register a taxpayer for VAT when the taxpayer has surpassed the KES 5 million turnover threshold but has not voluntarily registered.

Under the Value Added Tax Act 2013 (“the VATA”), the Kenya Revenue Authority (KRA) has the authority to register a taxpayer for VAT if the taxpayer meets the KES 5 million threshold but has not voluntarily registered for VAT. However, if the KRA fails to notify the taxpayer of this mandatory registration, such failure constitutes a breach of the law. Consequently, any actions taken by the KRA to demand taxes based on this registration is invalid.

Also see YOGI SUPERMARKET LIMITED VS. COMMISSIONER OF DOMESTIC TAXES.