This archive report was first published on 20 July 2021.
July 20, 2021 - Zoom Video Communications Inc, headquartered in San Jose, United States, has announced plans to charge Value Added Tax (VAT) on its supplies in Kenya starting August 1st, 2021.
This move follows the Kenyan government's imposition of a 16% VAT on the service, which Zoom says it has been forced to pass on to its consumers.
According to Zoom, businesses with online activities in Kenya will be charged for using the video conferencing app, with licenses costing between KSh15,000 ($150) and KSh25,000 ($240) for larger businesses and organizations.
Zoom will issue a VAT invoice showing the tax at the appropriate rate for customers not registered for VAT in Kenya, while clients registered for VAT must provide their Personal Identification Number (PIN) and a declaration that they are registered for VAT in Kenya.
Under the 'reverse charge' mechanism, registered VAT customers will be required to self-assess for the VAT, while unregistered customers will be charged VAT on the supplies made to them by Zoom.
