Following the announcement and eventual ratification of a draft bill that will see all digital marketplaces operating in Kenya pay a 1.5% digital service tax, a lot of questions have been raised over this new direction.
The Kenya Revenue Authority (KRA), which is responsible for collecting revenue on behalf of the government of Kenya, says the digital service tax will come into effect beginning January 1, 2021.
How will the new tax affect digital marketplaces like crypto P2P platforms in Kenya?
While the Finance Act defines a ‘digital marketplace as a platform that enables the direct interaction between buyers and sellers of goods and services through electronic means, there is still no precise meaning on who will be impacted by this tax.
Crypto companies and entrepreneurs operating, or planning to set up operations, in Kenya are encouraged to attend and air their questions and comments during the session in order to help them understand what is required before the January 1, 2020 deadline.