The government via the Finance Act of 2022 made a U-turn by restoring the status of export of services to zero-rated. The move though laudable, has equally brought confusion to exporters of services. The VAT Act now limits what qualify as exports of services to Business Process Outsourcing (BPO). The lwa, howevers does not define BPO exporters of services and the KRA and taxpayers are likely adopt conflicting interpretation of the law thus leading to uncalled tax disputes.
Source: businessdailyafrica.com
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