This archive report was first published on 11 June 2020.
On June 11, 2020, the Kenya Revenue Authority (KRA) released proposals for the Value Added Tax (Digital Market Place Supply) regulations, 2020.
The new regulations aim to tax a wide range of digital services, including e-books, movies, mobile apps, news, magazines, journals, streaming of TV shows and music, podcasts, and online gaming.
According to KRA, a digital market place supply shall be deemed to have been made in Kenya if the recipient of the supply is in Kenya, or if the payment proxy, including credit card information and bank account details, is in Kenya.
The proposals also target other services, including website hosting, online data warehousing, file-sharing, and cloud storage services, as well as software, drivers, website filters, and firewalls.
Supply of music, films, games, tickets bought for live events, theaters, and restaurants purchased through the internet will also be subject to tax.
Online learners will also be affected, as all materials for online learning supplied through the internet will be taxed.
