Kenya VAT update

Kenya is to introduce a range of changes to its VAT regime as per its recent Finance Bill 2019/20. This includes:

• Rate of withholding VAT will be cut to 2% from 6%
• Supplies to consumer via foreign digital marketplaces will be liable to VAT
• A range of supplies will be exempted from VAT, including: certain agricultural supplies; commercial batteries; IT infrastructure; and equipment for recycling
• VAT on imported services will be due on supplies to unregistered tax persons