KRA targets e-commerce platforms with new taxes

Elvis Onchwari | Jun 6, 2020

The Kenya Revenue Authority (KRA) is targeting e-commerce platforms with new taxes to fund the Sh3 trillion 2020/2021 budget.

Under the draft 2020 Value Added Tax (Digital Market Supply) Regulation, downloadable digital contents, subscription-based media, software programs, electronic data management, and supply of music, film, and games will be taxed.

Others include search engines and automated help desk services, online tickets, e-learning platforms, audio, vision or digital media, transport hailing platforms, among others.

"A person supplying taxable services through a digital marketplace shall be required to register for VAT in Kenya," the regulation says.

Finance CS Ukur Yatani has mooted plans to tax such digital platforms such as WhatsApp and Facebook as part of an effort to meet and fund a budget that is currently facing constraints.

Such challenges include infrastructure projects under the Big Four Agenda and reviving an economy.

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