- The Finance Bill 2025 was presented to Parliament on 30 April 2025
- Parliament will seek stakeholder and public comments before the Bill becomes an Act
- The Bill proposes expanding the scope of taxable electronic services to include internet, radio, and television broadcasting by nonresident suppliers
- Nonresident providers of these services must register and account for VAT in Kenya
- The Bill proposes reducing the timeline for lodging VAT refunds from 24 months to 12 months
- The Bill proposes reducing the time limit for VAT refund on bad debts from three years to two years
- The Bill allows offsetting approved VAT refunds on bad debts against future VAT liabilities
- The Bill proposes broadening the requirement for issuing a valid tax invoice for all registered persons making supplies
- The Bill proposes VAT liability for exempt and zero-rated supplies used inconsistently with their intended purpose
- The Bill proposes changing the VAT status of certain products from exempt to taxable at 16 percent
- Affected sectors include health, automotive and transportation, non-governmental organizations, and tourism
Source: globaltaxnews.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.
