- The High Court of Kenya ruled that Pesapal Limited’s payment processing commissions are exempt from VAT, overturning a previous Tax Appeals Tribunal decision. The court clarified that VAT exemptions apply based on the nature of the activity, not the provider’s classification, meaning fintech services can qualify for exemptions even if delivered digitally. This decision has implications for how fintech services are classified in emerging markets and aligns with global debates on VAT treatment for digital financial services.
Source: vatabout.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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