Finance Bill 2026: VAT Imposed on Digital Payment Service Provider Commissions Effective July 1, 2026

• The Finance Bill, 2026 proposes to subject commissions by digital payment service providers to VAT.
• The amendment targets money transfer, payment processing, settlement, merchant acquiring, gateway, and aggregation services supplied for a fee or commission.
• The measure aims to clarify VAT obligations for fintech and digital payment services, reducing disputes with the Kenya Revenue Authority.
• The change is expected to increase compliance costs and may result in higher consumer prices.
• The proposal responds to recent court rulings that exempted such commissions from VAT, with an effective date of 01 July 2026.

Source: assets.kpmg.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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