Kenya: Value Added Tax (Electronic, Internet and Digital Marketplace Supply) Regulations entered into force

On 21 March 2023, the Value Added Tax (VAT) (Electronic, Internet and Digital Marketplace Supply) Regulations, 2023, entered into force. The regulations govern VAT on digital services in Kenya and revoke the previous 2020 digital market supply regulations. They define terms and specify taxable supplies, including downloadable content, media subscriptions, software, data management, and online education. The tax applies to supplies made in Kenya, with suppliers from export countries required to register within 30 days. Registration involves submitting business and contact information, with a personal identification number issued for tax purposes. Non-registering suppliers must appoint a tax representative. The place of supply is determined by the recipient location, and tax is due upon payment receipt or invoice issuance. Suppliers must submit returns and remit tax by the 20th of the following month, with intermediaries responsible for tax on behalf of suppliers.