Kenya Tax: Value Added Tax Act
In line with Kenya government's move to reduce taxes on air carriage and transportation, landing and parking services payable in respect of aircraft has been zero rated for VAT purposes with effect from 11 June 2010.
A person who having constructed a building or civil works or purchased assets for use in making taxable supplies registers for VAT previously can with effect from 11 June 2021 claim relief from tax paid on the construction of such buildings or civil works or assets within a period of twenty four months of registration. This period has now been increased from twelve months.
In a bid to lower the cost of power generation in the country, transformers having a power handling capacity not exceeding 16KVA have with effect from 11 June 2021 been exempted from VAT. Additionally, electrical energy saving bulbs, aquaria pumps, outboard engines of 10HP and inverters have also been exempted from VAT.