- The Kenya Tax Appeal Tribunal ruled that switching services provided by Kenswitch Limited are exempt from VAT.
- The Tribunal determined that the nature of the service—facilitating financial transactions—qualifies as a financial service, regardless of the technology or software used.
- The Tribunal rejected the tax authority’s argument that such services are ICT or software-based and therefore not VAT-exempt.
- The ruling clarifies VAT treatment for fintech and digital payment services in Kenya, emphasizing the importance of the service’s economic substance over its technological delivery.
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.
Latest Posts in "Kenya"
- KRA VAT Collections Hit Sh30 Billion Monthly After Mandatory Electronic Invoicing Enforcement
- Kenya Unveils Tax Reforms to Boost Agricultural Exports and Enhance Global Competitiveness
- Kenya Court: Digital Platforms with Transaction Control Liable for VAT on Full Customer Payments
- eTIMS Fuel Station System: Streamlining Tax Compliance and Operations for Kenyan Fuel Retailers
- High Court Rules Digital Platforms Liable for VAT on Full Transaction Value, Not Just Commissions
