The system of withholding VAT was introduced in 2003 for the first time in Kenya.
Withholding VAT is not a tax in itself, but a method of collecting VAT. Instead of the seller paying the VAT to the tax authorities, the VAT is automatically withheld by the customer (or the tax authorities), ensuring that the VAT due on the transaction is always collected.
This article provides information on how this works in Kenya.
Source: taxkenya.com
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