VAT is the abbreviation of Value Added Tax. VAT is in general due when goods and/or services are sold. It applies to most goods and services supplied for use or consumption in Kenya. VAT is a consumption tax because it is ultimately borne by the final consumer.
Generally, VAT is invoiced by the supplier that is selling goods or services and collected from the customer. Subsequently, the supplier reports and remits the collected VAT to the tax authorities.
Zoom is registered for VAT in Kenya meaning that it is required to collect VAT from its customers and pay the VAT collected to the tax authorities in Kenya. Zoom is required to charge VAT on all supplies made to all customers in Kenya in accordance with the VAT (Electronic, Internet, and Digital Marketplace Supply) Regulations, 2023.
Zoom is required to charge VAT on all supplies made to customers in Kenya regardless of whether the customer is a business or non-business customer in accordance with the VAT (Electronic, Internet, and Digital Marketplace Supply) Regulations, 2023.
A Personal Identification Number (PIN) is a personal and unique tax registration number in Kenya that is issued by the tax authority and that is used to identify a taxpayer in any transaction conducted with the tax authority, the government, and other service providers. It is an alphanumeric number consisting of 11 characters, the first and last of which are letters whilst the middle characters are digits. The PIN for an individual is identified where the first character is A, for example, “A000123456F”, whereas the PIN for corporate business entities starts with the letter P, for example, "P123456789X”.
Both individuals and corporations may be registered for VAT in Kenya if they make or expect to make taxable supplies of KES 5 million or more in any period of 12 months. Once registered, the person will have a VAT obligation registered against its PIN with the tax authority.
Therefore, it may be the case that while a taxpayer has a PIN, they may not be necessarily registered for VAT where they do not meet the registration threshold.
If you provide your PIN to Zoom, it will be displayed on the invoices issued to you. To provide your PIN, follow the steps below depending on where your billing portal is located in the left navigation menu of the Zoom web portal. Not sure how to identify where your billing portal is located? Learn how to locate your billing settings.
You are required to notify us if there is a change to your VAT registration status.
Yes, Zoom is registered in Kenya for VAT purposes and therefore Zoom’s PIN will be shown on the invoice it issues to you.
If a customer's Sold To location is in Kenya, Zoom will charge Kenyan VAT on its invoices.
This information is subject to cross-referencing against other data to verify that the ‘Sold To’ country is accurate.
It is your responsibility as a customer to ensure that your ‘Sold To’ address is accurate.
Yes, the Second Schedule to the Value Added Tax Act, 2013 (the VAT Act) provides for the zero-rating of taxable supplies made to public bodies, privileged persons, and institutions such as the United Nations or its specialized agencies. If this applies to you, submit a request to Zoom Support to update your tax status with Zoom.
As mentioned above, Zoom is required to charge VAT on all supplies made to customers in Kenya with effect from 1 September 2022. For the avoidance of doubt, this continues to apply following the issuance of the VAT (Electronic, Internet and Digital Marketplace Supply) Regulations, 2023 introduced with effect from 15 March 2023.
Following the implementation of the Value Added Tax (Digital Marketplace Supply) (Amendment) Regulations, 2022 and the Finance Act, 2022 and subsequently the VAT (Electronic, Internet and Digital Marketplace Supply) Regulations, 2023, Zoom is required to charge VAT to all customers located in Kenya. As such, there should be no additional requirements for customers in Kenya. If you are a business customer, we recommend retaining a copy of the invoice issued by Zoom to you to support any claims for input VAT deduction.
Pursuant to the VAT (Electronic, Internet, and Digital Marketplace Supply) Regulations, 2023, Zoom is not required to issue an electronic tax invoice as non-resident digital service suppliers are exempt from the provisions of the Electronic Tax Register. Zoom will however issue an invoice showing the value of the supply, tax charged, and customer PIN (if provided). The invoices issued by Zoom will be deemed to be tax invoices and business customers who have provided their PINs will be allowed to claim input VAT deductions, subject to the normal conditions as per Kenyan VAT law.
For more information, please refer to the FAQs issued by the Kenya Revenue Authority (“KRA”) published here, which may be updated by the KRA from time to time.
In limited circumstances, VAT Withholding may apply to invoices issued by Zoom where the purchaser has been appointed a withholding VAT agent by the Kenya Revenue Authority (“KRA”). The VAT to be withheld and remitted by the appointed withholding VAT agent is 2% of the value of taxable supplies i.e., this being the NET amount shown on the invoice.
A withholding VAT certificate is issued to Zoom once the VAT withheld has been remitted to the Commissioner through iTax. On receipt of a withholding VAT certificate, Zoom will automatically write-off 2% of the NET value of the invoice. For this reason, it is important that you correctly report the invoice number exactly as it is mentioned on your Zoom invoice so that the withholding VAT can be automatically applied to the correct invoice.
If you have already paid the invoice in full, the withholding VAT amount will be maintained as a credit on your account and can be applied against future invoices. Alternatively, you can request a refund of the withholding VAT amount by chatting with Billing. If your account is set to autopay, DUR (electronic payment), the credit will automatically be applied to your next invoice.
If the invoice has not yet been paid in full, the withholding VAT amount will be deducted from the open invoice balance so that payment can be made, less the VAT Withholding amount.
If you provide your PIN to Zoom, it will be displayed on invoices issued to you. If you forget to provide your PIN to Zoom prior to the issuance of an invoice, you should contact us by chatting with Billing within 30 days of the invoice date to request an updated invoice.
Every customer is unique and so are their specific tax circumstances. The above-stated information should not be considered as tax advice, but as a general overview of relevant VAT rules in Kenya. Zoom cannot provide you with tax advice for your individual situation, and therefore we strongly recommend speaking with a professional tax advisor for tailored advice.