KRA to charge 5% digital tax for Zoom Service

The Kenya Revenue Authority (KRA) will from August 1st, 2021 begin to charge Kenyan users a digital tax for using Zoom Video Communications

The Kenya Revenue Authority (KRA) will from August 1st, 2021 begin to charge Kenyan users a digital tax for using Zoom Video Communications.

Zoom, which is currently registered in Kenya as a non-resident supplier of electronic services, falls under the category of firms meant to remit the 5 per cent digital taxes. These taxes were made into law in January 2021.

KRA has noted that many corporations that use Zoom regularly and host large volumes of people do not pay for the service. Pro users can host more people, and have access to more premium features. The platform will thus collect taxes from its subscribers and remit them to Kenya Revenue Authority (KRA).

For customers with Value Added Taxes (VAT) registration, only a KRA (Personal Identification Number) PIN is required.

The use of unique identification will aid in avoiding double taxation. However, users without tax registrations will pay for the services inclusive of VAT.


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