Facebook has announced plans to start charging value-added tax (VAT) on the sale of advertisements on its platform in Kenya starting 1st April 2021.
This is in compliance with the Kenya government’s Income Tax (Digital Service Tax) Regulations 2020, which came into effect on the 2nd January 2021.
“Beginning 1 April 2021, Facebook ads in Kenya are subject to a value-added tax (VAT) at the applicable local tax rate. This applies to advertisers whose ‘Sold To’ country on their business or personal address is set to Kenya and who haven’t confirmed that they’re advertising for business purposes.” The social media giant said in a notice to its Kenyan business partners.
Kenya’s digital services tax is expected to affect digital advertising services by multinationals such as Google, streaming services like Netflix and Spotify.
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