Following the government’s imposition of a 16% Value Added Tax (VAT) on electronic services, starting August 2021, Kenyans will begin paying VAT for using the popular video conferencing platform, Zoom.
Zoom is registered for VAT in Kenya as a non-resident supplier of electronic services and as such, Zoom is required to collect and remit VAT on supplies made to non-VAT registered customers in Kenya.
“Like many companies with a growing international presence, Zoom is routinely evaluating its indirect tax collection and remittance obligations. The application of these taxes to business with online activities is a complex and evolving area.” The company said