Treasury Cabinet Secretary Ukur Yattani has gazzetted the Digital Marketplace Supply Regulations of 2020 setting the stage for digital taxes remittance. – By Collins Osanya
As such, Treasury now requires digital businesses to register with the taxman and remit a 14% VAT on marketplaces such as eCommerce, online subscriptions, and other digital services that have been escaping KRA’s tax radar from January 1, 2021.
In a gazette notice seen by Uzalendonews.co.ke , Treasury defined a digital marketplace as a “platform that enables the direct interaction between buyers and sellers of goods and services through electronic means.”
Digital marketplaces set to be affected by these new regulations include those involved in and not limited to:
- Mobile applications, e-books, and movies
- News, magazines, journals, TV and music streaming sites, podcasts, and online gaming
- Software, drivers, website filters, and firewalls;
- Website hosting, online data warehousing, file-sharing, and cloud storage services;
- Supply of music, films, and games;
- Supply of search-engine and automated helpdesk services including supply of customised search-engine services;
- Tickets bought for live events, theatres, restaurants etc. purchased through the Internet;
- e-learning, including supply of online courses and training;
- Supply of digital content for listening, viewing or playing on any audio, visual, or digital media;
- Supply of services on online marketplaces that link the supplier to the recipient, including transport hailing platforms;
