Kenya: VAT exemption upheld on disposal of salvage vehicles by insurers
High Court confirms VAT exemption on disposal of salvage by insurers
The High Court on October 23, 2025, held that the sale of salvage motor vehicles by insurance companies are exempt from valued added tax (VAT) under the VAT law.
The sale of salvage vehicles and the insurance indemnity form a single economic supply and separating them would alter the nature of the insurance transaction.
The case is: Commissioner of Domestic Taxes v. ICEA Lion General Insurance Company Limited [2025] KEHC 14865 (KLR)
For more information, contact a KPMG tax professional in Kenya:
Stephen Waweru | swaweru@kpmg.co.ke