What services are subject to VAT?

These include catering, alcoholic drinks, confectionery, crisps and savoury snacks, hot food, sports drinks, hot takeaways, ice cream, soft drinks and mineral water.

Are IT services taxable in Kenya?

Digital Service Tax (DST) is payable on income derived or accrued in Kenya from services offered through a digital marketplace. 2. What is a Digital Market Place? A digital marketplace is a platform that enables direct interaction between buyers and sellers of goods and services through electronic means.

How much is the VAT for services?

VAT applies to practically all sales of services and imports, as well as to the sale, barter, exchange, or lease of goods or properties (tangible or intangible). The tax is equivalent to a uniform rate of 12%, based on the gross selling price of goods or properties sold, or gross receipts from the sale of services.

What is Kenyan VATable?

What is Value Added Tax (VAT)? Value Added Tax is charged on supply of taxable goods or services made or provided in Kenya and on importation of taxable goods or services into Kenya.

When should I charge VAT on services?

You must account for VAT on the full value of what you sell, even if you: receive goods or services instead of money (for example if you take something in part-exchange) haven’t charged any VAT to the customer – whatever price you charge is treated as including VAT.

Is digital services VAT taxable?

If you are a business making supplies of digital services to UK consumers, those supplies are liable to UK VAT. If you make supplies of digital services to consumers outside the UK these are not liable to UK VAT. They may be liable to VAT in the country where the consumer is based.

What are digital services tax?

Digital Service Tax (DST) is a tax charged on income derived or accrued from provisions of services through a digital market place. DST will be charged on the gross transaction value of the service on the payment received as consideration for the service.

Who can register for VAT?

You must register for VAT if your VAT taxable turnover goes over £85,000 (the ‘threshold’), or you know that it will. Your VAT taxable turnover is the total of everything sold that is not VAT exempt. You can also register voluntarily.

How is VAT applied?

VAT stands for Value Added Tax and is a general tax placed on almost all goods and services sold. The simple principle behind VAT is consumers pay a tax on the products they buy based on the value of the product. VAT rates are percentage based, which means the greater the price, the more the consumer pays.

What are the types of VAT?

There are three types of VAT, they are:

  • Consumption type.
  • Income type.
  • Gross National Product (GNP) type.

What happens if you charge VAT on exempt goods in Kenya?

The offense of charging VAT on exempt goods or services carries a fine of even up to one million Kenya shillings or a jail term of three years. Here is a detailed list on goods that have been exempted from the Value Added Tax in Kenya.

What is the difference between VAT and zero rated goods and services?

In both cases, VAT is not added to the selling price of the goods or services but zero-rated goods and services are taxable at 0% VAT. This article will give a clear insight on the list of zero rated goods and services in Kenya.

What are the zero rated goods and services in Kenya?

This article will give a clear insight on the list of zero rated goods and services in Kenya. Some of the most common VAT exempt goods in Kenya include milk, eggs, meat, rice, maize, bread, beans, unprocessed vegetables, tubers, infant food formula, medicines, fertilizers, sanitary towels, pharmaceuticals just to name a few.

What is an example of a VAT exempt supply?

Plants and machinery designed specifically for garbage collection are some examples of VAT exempt vehicles. Persons who deal exclusively in exempt supplies are not liable to register for VAT or claim input tax on the supplies. 1. The following financial services are VAT exempted