Finance

Are Financial Service Providers Exempt from VAT?

Pesapal Limited v Commissioner of Domestic Taxes [2025] KEHC 12284 (KLR) Background KRA issued a VAT assessment against Pesapal for commissions earned from merchants, comprising a principal tax of Kshs. 76,836,162 and penalties/interest of Kshs. 33,982,992. Pesapal objected the VAT assessment, arguing its services were VAT-exempt financial services. The Tax Appeals Tribunal dismissed Pesapal’s appeal. […]
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