Salvage vehicles exempt from VAT, court affirms

Salvaged cars are vehicles declared total loss due to accidents or vandalism and whose repair costs exceed or a near their market value.
 

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Sale of salvage motor vehicles by insurance companies is exempt from Value Added Tax (VAT), the High Court in Nairobi has declared, handing insurers a major victory against the taxman.

The court dismissed the Kenya Revenue Authority's (KRA) appeal, upholding a Tax Appeals Tribunal decision that earlier ruled in favour of ICEA Lion General Insurance Company.

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