Through the Finance Bill, 2021, the tax authority hopes to deny multinationals billions of shillings in value-added tax (VAT) refunds for the export of services to their foreign-based parent companies. For marketing and advertising of their services in Kenya, these multinationals pay billions of shillings through their branches. No-brainerBut the parent company instructed KAHL to instead invoice it. With the parent company being invoiced, the service became an export and therefore zero-rated. Stung by the loss, the National Treasury has proposed that export services be exempt from VAT, a shift from the current position where exported services are zero-rated.

Source: Standard Digital June 07, 2021 21:00 UTC