Kenya: Application of VAT on digital services provided by non-residents

VAT (Electronic, Internet and Digital Marketplace Supply) Regulations, 2023

VAT (Electronic, Internet and Digital Marketplace Supply) Regulations, 2023

The Kenya Revenue Authority recently published regulations regarding the application of the value added tax (VAT) on digital services provided by non-residents.

The “VAT (Electronic, Internet and Digital Marketplace Supply) Regulations, 2023” [PDF 339 KB] replace the “VAT (Digital Marketplace Supply) Regulations, 2020.”

Among other things, changes in the new regulations clarify that:

  • The following services are also within the scope of the VAT on digital services regime:
    •  Services that link the vendor to the recipient including transport-hailing services or platforms
    • The sale of, licensing of, or any other form of monetizing data generated from the users' activities
    • The facilitation of online payments or exchange of digital assets excluding services exempt in the Act
  • Non-resident providers of digital services are exempted from the requirement to issue an e-invoice.
  • For sourcing purposes, the customer location may be determined by:
    • Payment proxy including credit card or debit card information and bank account information
    • Residence proxy including the billing or home address or access proxy including internet address, or SIM card information

For more information, contact a KPMG tax professional:

Philippe Stephanny |

Chinedu Nwachukwu |


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