The VAT status of exported services has been reclassified from “exempt” to ‘taxable’ at the standard rate of 16% (with the exception of business process outsourcing services which will be subject to VAT at zero rate). This means that the costs of procuring services from Kenya for a non-resident will be higher. However, service providers in Kenya will now be able to claim VAT incurred in providing exported services.
Source: ensafrica.com
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