- The Kenyan High Court ruled that interchange fees are exempt from value added tax (VAT).
- The ruling upheld earlier decisions by the Tax Appeals Tribunal and the High Court.
- The case involved the Commissioner of Domestic Taxes seeking to charge VAT on interchange fees earned by the Commercial Bank of Africa Limited.
- The Bank argued that interchange fees qualify as money transfer services, which are VAT-exempt.
- The Tax Appeals Tribunal ruled in favor of the Bank, and the High Court affirmed the decision.
Source: taxnews.ey.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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