This archive report was first published on 5 June 2020.
On June 5, 2020, the Kenya Revenue Authority (KRA) unveiled new tax rules aimed at e-commerce platforms to fund the Sh3 trillion 2020/2021 budget.
The draft 2020 Value Added Tax (Digital Market Supply) Regulation targets various digital services, including downloadable digital contents, subscription-based media, software programs, electronic data management, and supply of music, films, and games.
Other services subject to tax include search engines, automated help desk services, online tickets, e-learning platforms, audio, visual, or digital media, transport hailing platforms, and more.
According to the regulation, individuals supplying taxable services through digital marketplaces must register for Value Added Tax (VAT) in Kenya.
Finance Cabinet Secretary Ukur Yatani has proposed taxing digital platforms like WhatsApp and Facebook to meet the budget's funding constraints, which include infrastructure projects under the Big Four Agenda and reviving the economy.
