High Court Rules Digital Platforms Liable for VAT on Full Transaction Value, Not Just Commissions

• The High Court ruled that digital platforms like Sendy, which exercise decisive control over transactions, are principal suppliers for VAT purposes and liable for VAT on the full transaction value.
• Sendy argued it was only a technology platform earning commission, not a provider of transport services, and relied on a prior KRA ruling supporting this view.
• The Tax Appeals Tribunal initially sided with Sendy, finding it was not the supplier of transport services.
• The High Court overturned the Tribunal, agreeing with KRA that Sendy’s control over pricing, driver assignment, and payment collection made it the principal supplier, thus liable for VAT on the full amount paid by customers.

Source: grantthornton.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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