- Kenya will expand VAT to cover a wide range of digital financial and payment processing services from 1 July 2026.
- The changes target fintech and platform-based payment activities, making commissions earned by payment service providers subject to VAT.
- The move responds to recent court rulings that exempted some fintech services from VAT, aiming to clarify and standardize VAT obligations.
- Payment providers will face increased compliance, invoicing, and potential cost adjustments.
- This aligns Kenya with a global trend of taxing digital financial services as electronic payments grow.
Source: vatcalc.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.
