Facebook intoduces VAT Tax On Kenyan Users

Facebook intoduces VAT Tax On Kenyan Users

Facebook has introduced taxes in Kenya effective April 1, 2021 applicable to advertisers following the new digital service tax introduced by the Kenya Revenue Authority (KRA).

According to Facebook, the VAT will apply to individuals who use the platform as a means to market and sell their products.

“This applies to advertisers whose ‘Sold To’ country on their business or personal address is set to Kenya,” the notice read in parts.

The other group that will be affected by the newly introduced taxes are advertisers in Kenya who will not have confirmed whether they are advertising for commercial purposes.

“If you confirm that you are advertising for commercial purposes, Facebook does not add VAT to your purchase of Facebook ads,” the notice further states.

Taxes will be affected from April 1, 2021 and some of Kenya’s over 8,000,000 Facebook users are expected to be affected.

Notably, not all Facebook users in Kenya will be affected. The statement showed that those who will be responsible will have met the criteria it provided.

The social media platform said that taxes are only added when you buy a Facebook ad, but you don’t confirm that you are doing it for business.

“VAT is added every time you are billed for your ads if you don’t buy Facebook ads for business purposes,” Facebook explained.

Likewise, if you confirm that you are buying professional ads, Facebook will not add VAT to the amount the user is supposed to pay.


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