- Court of Appeal of Kenya ruled VAT is applicable to commercial property sales
- Overturned previous High Court decision
- Case involved Kenya Revenue Authority and David Mwangi Ndegwa
- Taxpayer purchased property in Kiambu in 2013
- KRA demanded 16 percent VAT on the transaction
- Taxpayer objected but paid under protest
- High Court initially ruled in favor of taxpayer in 2018
- KRA appealed and Court of Appeal ruled in favor of KRA
- Court clarified VAT law applies to commercial buildings
- Decision highlights need for real estate developers to include VAT in pricing and ensure compliance
Source: kpmg.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.
