Kenya: Value Added Tax (Digital Marketplace Supply) (Amendment) Regulations (Legal Notice 68 of 2022) entered into force

On 27 May 2022, the Value Added Tax (VAT) (Digital Marketplace Supply) (Amendment) Regulations, 2022 (Legal Notice 68 of 2022) entered into force and amended the VAT (Digital Marketplace Supply) Regulations, 2020. The definitions of "business-to-business transaction" and "business-to-consumer transaction" were removed. The scope of taxable supplies was clarified to specify that distance teaching services exclude those exempted under the First Schedule to the Act. The amendments clarify the application of tax by deleting provisions related to business-to-business transactions and simplifying the requirements for suppliers from export countries. Additionally, the updates emphasised that intermediaries must charge and account for tax on supplies made on behalf of others, irrespective of the other person's registration status.