Coca-Cola Loses Sh69mn VAT Claim Over Delayed Filing

Coca-Cola Beverages Ltd has lost a KSh69.76 million tax dispute after the Tax Appeals Tribunal ruled that the company waited too long to claim VAT it had paid on purchases.

According to VAT rules, businesses can deduct VAT paid on their purchases but the deduction must be claimed within six months from the relevant purchase or supply period. In this case, Coca-Cola's disputed purchases were made in January 2025, giving the company until July 2025 to put the KSh69.76 million claim into its VAT records.

The Tribunal upheld the Kenya Revenue Authority's (KRA) rejection of the input VAT claim and left the company liable for the disputed amount. The Tribunal ruled that the six-month period runs from the date of supply or importation, not when the VAT return was filed.