Jan 2023 – draft VAT digital services regulations for new simplified VAT registration for non-resident providers and marketplaces The Revenue Authority has issued comprehensive regulations for the compliance VAT rules for providers and marketplaces of digital services. There will now be a short public consultation
Extension of Electronic Tax Invoice management system (TIMS) full implementation to 30 November 2022 From 30 November 2022, only purchase invoices cleared through the Electronic Tax Invoice management system (TIMS) government system may be used to deduct input VAT by taxpayers. This now applies to
B2B reverse charge option withdrawn for foreign providers of digital services The VAT Digital Marketplace Supply Regulations, which governs the rules for non-resident providers and marketplaces to charge Kenyan VAT, have been updated with a number of changes, including: Withdrawal of the reverse charge for
Foreign providers of electronic services given VAT registration threshold Kenya has introduced a VAT registration threshold for non-resident providers of digital services to Kenyan consumers. This is KES 5 million (approx €41,700) per annum of turnover. This is the same level as for resident business.
Kenya to raise DST from 1.5% to 3% despite OECD agreement for 2023 global corporate tax reforms The Kenyan 2022 Finance Bill plans to raise the country’s Digital Services Tax from 1.5% to 3%. The Organisation for Cooperation and Development, which has coordinated a global settlement
Kenya continues with its DST despite OECD agreement for 2023 global corporate tax reforms The latest Kenyan Finance Act has limited the application of the 1.5% Digital Services Tax (DST) to non-resident digital marketplaces. DST came into effect on 1 January 2021. This is in
Tax registers with live reporting to the Revenue Authority The Kenya Revenue Authority KRA started in August 2021 the operations of e-invoicing cash registers under which taxpayers to maintain a tax register that is able to transmit tax invoice data to the Kenya Revenue Authority
Kenya has returned its standard VAT rate to 16% from 14% on 1 January 2021. The rate was temporarily reduced to 14% on 1 April 2020 to help support businesses and consumers as the COVID-19 pandemic struck in 2020. The African country also reduced its
