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 Implements New Import Compliance Obligations
- Kenya High Court Rules Payment Services as VAT-Exempt, Overturns Tribunal Decision
- KRA Reminds Operators to Renew Bonded Warehouse and MUB Licenses by December 2025
- KRA Reminds Transporters to Renew Transit Goods Vehicle Licenses by October 31
- KRA Announces Customs Agents License Renewal Applications for 2026
