- The High Court of Kenya overruled a previous ruling, clarifying VAT treatment for payment service providers.
- Pesapal Limited was initially required to pay VAT, penalties, and interest on commissions.
- The High Court found these services to be VAT-exempt financial services.
- The Court emphasized that VAT exemption depends on the nature of the service, not the provider’s status.
- Ambiguities in tax law should favor the taxpayer.
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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