- The tax tribunal ruled that county revenues collected for public services are not subject to VAT, as they do not constitute commercial activity.
- Most of the disputed tax bill against Kiambu County was set aside, removing VAT, withholding taxes, and several employee-related taxes from the assessment.
- The tribunal found that county governments operate to provide social and welfare services, not to generate profit, and thus their revenues are exempt from VAT under the law.
- The Kenya Revenue Authority failed to prove that the county engaged in taxable business activities or that its revenue streams fell outside its constitutional mandate.
Source: kenyanwallstreet.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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