VALUE ADDED TAX - DIGITAL MARKET PLACE SUPPLY - TO TAX YOU FOR YOUR MOBILE APPS ET AL

KRA - The Kenya Revenue Authority plans to tax every Kenyan downloading e-books, movies and mobile apps. In the Value added tax on the Digital market place supply, the regulations proposes the taxation on news, magazines, journals, TV shows streaming, music, podcasts, online gaming, software, drivers,website filters, and firewalls. Other targeted services include website hosting, online data warehousing, file-sharing, and cloud storage services.

KRA proposal says “A digital market place supply shall be deemed to have been made in Kenya where the recipient of the supply is in Kenya, the payment proxy including credit card information and bank account details of the recipient of the digital supplies is in Kenya; or the residence proxy including the billing or home address or access proxy including Internet Proxy address, mobile country code of SIM card of the recipient is in Kenya."