OBJECTS OF THE REGULATIONS
These regulations mainly seeks to streamline VAT collection in the digital platform where vatable goods and services are exchanged between business-business and business –
consumer under cross-border business relations.
BUSINESS TO BUSINESS TRANSACTIONS (B2B)
means a transaction between a supplier from an export country to a tax registered or non-registered business entity in Kenya that is required to account for tax on imported
services under section 10 which provide the procedure of treatment of imported services.
DIGITAL MARKET PLACE
“digital marketplace” means a platform that enables the direct interaction between buyers and sellers of goods and services through electronic means;
TAXABLE SUPPLIES IN DIGITAL MARKET PLACE
a) downloadable digital content including downloadable mobile applications, e-books and films.
b) subscription-based media including news, magazines and journal.
c) over-the-top services including streaming television shows, films, music, podcasts and any form of digital content.
d) software programmes including software, drivers, website filters and firewalls.
e) electronic data management including website hosting, online data warehousing, file-sharing and cloud storage services
f) Music, and games
g) search engine and automated helpdesk services including customisable search engine services
h) tickets for live events, theatres or restaurants
i) distance teaching through pre-recorded media or e-learning including online courses and training
j) digital content for listening, viewing or playing on any audio,visual or digital media
k) services that links the supplier to the recipient including transport hailing services or platforms
l) electronic services under section 8 (3); and
m) any other service provided through a digital marketplace that is not exempt under the Act
COLLECTION OF DIGITAL TAX: SECTION 42B
The bill seeks to give authority to the commissioner for appointment of a tax agent for the purpose of collection and remittance of digital services tax: section 42B (1).
The appointment is revocable at any time by the commissioner: section 42B (2).
