Court: Export logistics services qualify for zero-rated VAT

The Court of Appeal has ruled that logistics services for exports qualify for zero-rated Value Added Tax (VAT).

Photo credit: Shutterstock

The Court of Appeal has ruled that logistics services for exports qualify for zero-rated Value Added Tax (VAT), dealing a blow to the Kenya Revenue Authority (KRA), which sought to impose a levy on the utilities.

The court said that taxation of export services should be done where the end product is consumed and not where the logistics are physically performed.

PAYE Tax Calculator

Note: The results are not exact but very close to the actual.