- High Court of Kenya overturned a Tax Appeals Tribunal ruling on August 27, 2025
- Commissions earned by a licensed payment service provider are exempt from VAT
- Provider’s activities include receiving, transferring, and processing payments
- Case involved Pesapal Limited v. Commissioner of Domestic Taxes
- Kenya Revenue Authority had assessed VAT and penalties on commissions
- High Court ruled VAT exemption depends on service nature, not licensing or digital platform use
- Court emphasized resolving tax law ambiguities in favor of the taxpayer
- VAT Act’s exemption list is open-ended, accommodating evolving financial services
Source: kpmg.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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