Kenya

Kenya withholding VAT

October 10th, 2016

Kenya has reintroduced its withholding VAT, backdated it to 19 January 2016. The measure, designed to prevent VAT evasion, was first introduced in 2003. It is effectively a VAT split payment regime, similar to the one recently deployed in Italy.  It allows for the Kenyan Revenue Authority to collect VAT directly from the customer in …


Kenya

Kenya VAT changes

June 12th, 2015

The new 2015/16 budget for Kenya includes a number of VAT changes, including: Good in transit will be nil rated instead of exempt from VAT, meaning input suffered will be recoverable VAT credits in returns will be refundable within 12 months of application Goods provided for the construction of capital works in industrial estates will …


Kenya

Kenya withholding VAT update

November 22nd, 2014

Kenya has updated the guidelines on its withholding VAT regime. Withholding VAT was introduced in 2003 as an anti-fraud measure. It involves the nominated customers acting as VAT collectors for transactions. Typically, the customers are governmental bodies, banks, insurance companies and exporters buying goods or services from commercial enterprises. New VAT guidance The clarification of …


Kenya

Kenya extends VAT exemptions

May 12th, 2014

Kenya has agreed to increase the number of basic goods which are exempt from its 16% VAT rate. The new goods include: Solar energy equipment Animal feed and related equipment Fishing nets The move comes following the introduction of the Kenya VAT Act 2013, which removed the 12% reduced VAT rate and the reclassification of …


Kenya

Kenya extends VAT exemptions

May 12th, 2014

Kenya has agreed to increase the number of basic goods which are exempt from its 16% VAT rate. The new goods include: Solar energy equipment Animal feed and related equipment Fishing nets The move comes following the introduction of the Kenya VAT Act 2013, which removed the 12% reduced VAT rate and the reclassification of …


Kenya

Kenya proposes full 16% VAT on books

July 13th, 2013

In an attempt to expand tax revenues, the Kenyan government has proposed imposing full VAT on books and other stationery supplies.  The current Kenyan VAT rate is 16%. The new proposals also include raising consumer energy supplies from the reduced 12% rate to 16%, too.