Kenya Tribunal Declares Switching Services VAT-Exempt, Clarifies Tax Rules for Fintech Sector

• 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.

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