The Kenyan Cabinet Secretary for National Treasury and Planning has issued draft Value-Added Tax (VAT) (Digital Marketplace Supply) Regulations, 2020 (the Regulations) for public commentary and subsequent approval by Parliament. The Regulations are intended to offer guidelines on the taxation of a “digital marketplace” following the introduction of taxation of such services under the Finance Act, 2019. These Regulations detail: (i) the scope of taxable supplies; (ii) registration requirements; (iii) simplified registration for nonresidents; (iv) rules on place and time of supplies; and (v) invoice and record-keeping requirements, among others. Generally, the new rules apply to Business to Consumer (B2C) supplies. Business to Business (B2B) supplies are treated as imported services, which are subject to reverse charge.
Source EY
Latest Posts in "Kenya"
- Kenya Court Clarifies VAT Liability for Non-Resident Digital Platforms as Deemed Suppliers
- KRA VAT Collections Hit Sh30 Billion Monthly After Mandatory Electronic Invoicing Enforcement
- Kenya Unveils Tax Reforms to Boost Agricultural Exports and Enhance Global Competitiveness
- Kenya Court: Digital Platforms with Transaction Control Liable for VAT on Full Customer Payments
- eTIMS Fuel Station System: Streamlining Tax Compliance and Operations for Kenyan Fuel Retailers
