Press "Enter" to skip to content

Digital services tax for e-commerce to take effect in January


President Uhuru Kenyatta on Tuesday signed into law the 2020-21 Budget, the 2020 Finance Bill and the 2019-20 Third Supplementary Budget at State House, Nairobi which will see Kenyans pay for digital services.

The 1.5 percent digital services tax levied on gross sales by online businesses such as Netflix and Uber will take in January.


The 2020 Finance Bill which is now law has several amendments targeted at cushioning Kenyans from the adverse effects of the Covid-19 pandemic.

Some of the amendments in the Finance Act include the zero rating of VAT on maize, cassava and wheat flour for six months so as to make flour affordable.

The new Finance Act also extends the zero rating of VAT on cooking gas for one year.

The National Treasury last month introduced digital tax, a Value Added Tax (VAT) on e-commerce services in the country, mostly targeting consumers who will be forced to have to pay higher for goods and services procured online.

S.Sudan NEWS PORTAL:  Saudi Arabia reportedly “angered” by Sudan’s pro-Ethiopian stance on Nile mega-dam

National Treasury Cabinet Secretary Ukur Yatani said that the Digital Marketplace Supply Regulations, 2020, will see online transactions attract a 1.5 percent digital tax as the government goes after the growing e-commerce in the country.


This move will have the likes of Netflix, HBO, Amazon Prime among others included in the tax regime in the country, many of whom signed to provide services to Kenyans and had not registered for VAT.

One aspect of the law is that the government will restrict these firms from the Kenyan market if they fail to comply with the regulations.

“A person who fails to comply with the provisions of these Regulations shall, in addition to the penalties prescribed under the Act, be liable to restriction of access to the digital marketplace in Kenya until such obligations are fulfilled,” the new law reads in part.

S.Sudan NEWS PORTAL:  Anerlisa Muigai talks about the most challenging part of her relationship with Ben Pol

The law will also apply to digital news subscription-based media content including news, magazines, journals, streaming of TV shows and music, podcasts and online gaming shall also be subject to the new digital services VAT.

The National Treasury also wants intermediaries who supply digital products on behalf of suppliers be required to charge and account for the VAT on such supplies whether such other person is registered for VAT or not.

The VAT law come in the wake of a new digital services tax introduced by the National Treasury that are expected to come in effect this financial year.

Original full article available on the website → Nairobi News

Credits : Nairobi News ( → Author : South Sudan PRESS REVIEW

S.Sudan NEWS PORTAL:  IGAD has on authority to decide states allocation for us – Makuei

Publishing and Aggregation by : South Sudan NEWS PORTAL
Permission : Central Press Syndicate South Sudan
Facebook : South Sudan NEWS PORTAL

We respect the intellectual property rights of our news sources and expect our users to do the same. We may provide links to external news sources from time to time, but any trademarks, logos, photographs and videos remain their copyrighted works. If you feel our website violates fair use or infringes on your copyright, inform us immediately for redress.
The Central Press Syndicate of South Sudan publishes articles related to South Sudan from press wires, verified social media sources and Google news, thereby centralizing South Sudanese news from all over the web, in an easy to read format.


Read related stories with similar tags below:

Be First to Comment

Leave a Reply