Market News

KRA new rules target e-commerce

Thursday June 04 2020

Treasury Secretary Ukur Yattani. FILE PHOTO | NMG

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

Under the draft 2020 Value Added Tax (Digital Market Supply) Regulation, downloadable digital contents, subscription based media, software programmes, 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 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.