- Kenya’s Tax Appeals Tribunal ruled that payment switch operators are exempt from the 16% VAT, classifying their services as financial (not ICT) and thus VAT-free.
- The decision benefits companies like Kenswitch, PesaLink, and Switchlink Africa, saving them millions and providing legal clarity.
- The ruling may influence Kenya’s planned national payment switch, potentially making digital transactions cheaper and more efficient.
- The case highlights ongoing regulatory challenges in distinguishing between financial services and technology in Africa.
- The Kenya Revenue Authority may continue to seek ways to tax digital intermediaries, so the issue is not fully settled.
Source: techpoint.africa
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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