VAT

Salvage Car

High Court Delivers Landmark Ruling on VAT & Insurance Salvage Sales

Commissioner of Domestic Taxes v ICEA Lion General Insurance Company Limited [2025] KEHC 14865 (KLR) Background This appeal arose from a compliance audit conducted by KRA on ICEA Lion General Insurance Company Limited. Following the audit, KRA issued a notice of assessment demanding additional taxes comprising of Corporation Tax and Value Added Tax, inclusive of […]
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VAT

Landmark VAT Ruling in Kenya: Tribunal Confirms PSP Services Are VAT-Exempt

Kenswitch Limited v. Commissioner of Domestic Taxes Tax Appeal No. E1336 of 2024 Background The Tax Appeals Tribunal has delivered a landmark decision in favour of Kenswitch Limited, a licensed Payment Service Provider (PSP), holding that PSP commission income qualifies as VAT-exempt financial services under Paragraph 1(b) and 1(m) of the First Schedule to the […]
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Value Added Tax

High Court Redefines VAT Liability for Digital Platform Operators

Commissioner of Domestic Taxes v Sendy Limited Income Tax Appeal E137 of 2024 Background Sendy Limited operates a digital marketplace connecting third-party transporters with customers who need delivery services earning commission income from transporters using its platform. Sendy won an appeal against an additional KRA VAT assessment at the Tax Appeals Tribunal finding that Sendy […]
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VAT Assessment

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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