- David Mwangi Ndegwa purchased property from Standard Chartered Bank Kenya Limited in 2013.
- The Kenya Revenue Authority (KRA) demanded 16 percent VAT on the purchase price.
- The taxpayer paid under protest and filed a claim against KRA at the High Court.
- The High Court ruled in favor of the taxpayer, stating the sale of land is exempt from VAT.
- The High Court found the VAT Act ambiguous regarding land and buildings.
- KRA appealed the decision to the Court of Appeal.
- KRA argued that land and buildings are treated as different taxable goods under the VAT Act.
- KRA stated that commercial buildings are not exempt from VAT.
- The taxpayer argued against distinguishing between land and buildings for VAT purposes.
- The Court of Appeal set aside the High Court’s decision.
Source: bowmanslaw.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
