- Court of Appeal Ruling: The Kenya Court of Appeal ruled that the sale of commercial property is subject to VAT at the standard rate of 16%, overturning a previous High Court decision that exempted it.
- Clarification on VAT Exemptions: The Court clarified that the VAT exemption under the VAT Act applies only to land and residential premises, not to commercial properties, distinguishing between “land” and “buildings.”
- Implications for Refund Claims: The ruling invalidates retrospective VAT refund claims based on the High Court’s interpretation, affirming that supplies not explicitly exempt are subject to VAT.
Source EY
