- Kenya’s High Court ruled that Sendy Limited must pay KSh 82.2 million in VAT, finding it was the principal provider of delivery services, not just a tech platform.
- The decision overturns previous rulings and sets a precedent that could require platforms like Uber, Bolt, and Glovo to pay VAT on the full transaction value, not just their commission.
- The Kenya Revenue Authority (KRA) can now pursue other digital platforms for VAT on gross transaction amounts, potentially raising business costs.
- Ride-hailing and delivery apps may have to absorb the extra tax or pass it on to consumers, leading to higher prices or reduced payouts for gig workers.
- The ruling challenges the current gig economy business model in Kenya and could reshape the industry’s future.
Source: techtrendske.co.ke
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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