- The respondent bought land with buildings from Standard Chartered Bank Kenya Ltd.
- Kenya Revenue Authority demanded VAT on the purchase, which the respondent paid under protest.
- The respondent sought a High Court declaration that no VAT was due on land sales, regardless of building type, and requested a VAT refund.
- The High Court ruled in favor of the respondent, but KRA appealed.
- The Court of Appeal considered whether “land” in the VAT Act includes buildings and the implications for VAT on land with buildings.
- The Court of Appeal disagreed with the High Court, stating the VAT Act’s definition of land must be used, not the broader constitutional definition.
- The Court clarified that VAT exemptions apply only to land and residential premises, not commercial premises.
- The Court of Appeal concluded that the High Court erred, affirming that VAT applies to commercial premises.
Source: wamaeallen.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.
