Meta, the parent company of social media giant Facebook, has announced that all Facebook ads in Kenya are now subject to the country’s 16% value-added tax (VAT) starting November 1, 2022.
According to a statement on the company’s help centre, VAT will be added whenever advertisers are charged for ads regardless of whether they are purchasing the ads for business or personal purposes.
But the statement pointed out the once the advertiser enters their VAT IDs in the Meta payment settings, they can always pull those details from the platform and present to the Kenya Revenue Authority (KRA) for a refund, if they qualify for it.
Kenyan traders with a turnover of taxable supplies of Ksh5 million ($41,150) per annum and above are required to register for VAT which is charged on goods and services made or provided in the country.
According to TechTrendsKE, in April this year, the Kenya Revenue Authority (KRA) revealed plans to double the tax collected from tech giants operating or facilitating digital payments in the country from 1.5% to 3%.
