The Source of revenue Tax (Virtual Carrier Tax) Rules, 2020

Virtual Services and products

Virtual services and products for which virtual provider tax shall observe come with—

• Downloadable virtual content material together with downloadable cellular programs, e-books, and flicks;
• Over-the-top services and products together with streaming tv presentations, movies, songs, podcasts, and any type of virtual content material; 
• Sale of, licensing of, or another type of monetizing information accrued about Kenyan customers which have been generated from the customers’ actions on a virtual market;
• Provision of a virtual market;
• Subscription-based media together with information, magazines, and journals; 
• Digital information control together with site web hosting, online information warehousing, file-sharing, and cloud garage services, and products; 
• Digital reserving or digital ticketing services and products together with the net sale of tickets;
• Provision of seek engine and automatically held table services and products together with the provision of customized seek engine services and products;

1. • Online distance coaching thru pre-recorded media or learning together with online classes and coaching; and
   • Some other providers are equipped thru a virtual market.   

Location of consumer

An individual might matter to virtual provider tax if that particular person supplies or facilitates the supply of a virtual provider to a consumer who’s positioned in Kenya. A consumer of a virtual provider might be deemed to be positioned in Kenya if,

• The consumer receives the virtual provider from a terminal positioned in Kenya, the place terminal comprises a pc, pill, and cell phone;
• The fee for the virtual provider is made for the usage of a debit or credit score facility equipped via a monetary establishment or corporate positioned in Kenya; 
• The virtual provider is got thru a web protocol cope with registered in Kenya or a global cell phone nation code assigned to Kenya; or 
• The consumer has an industry, residential or billing cope in Kenya.

Utility of virtual provider tax

Virtual provider tax shall observe to the source of revenue of a resident or non-resident particular person derived from or collected in Kenya from the supply of services and products thru a virtual market.  It might be imposed at the gross transaction price of the virtual provider at a price of one.5%.

Virtual provider tax paid via a resident or non-resident particular person with an enduring status quo in Kenya might be offset towards the tax payable via that particular person for that 12 months of source of revenue.

Virtual provider tax paid via a non-resident particular person with no everlasting status quo in Kenya might be a last tax.

Compliance

A non-resident particular person with no everlasting status quo in Kenya who supplies a virtual provider to a consumer in Kenya would possibly sign up underneath the simplified tax registration framework.

A resident particular person, or a non-resident particular person with an enduring status quo in Kenya, who supplies a virtual provider in Kenya might be required to use the Commissioner for virtual provider tax registration within the prescribed shape.

An individual susceptible to paying virtual provider tax shall post a go back within the prescribed shape and remit the tax due via the 20th day of the month following the tip of the month that the virtual provider was once presented.

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