Compendium · Africa · Kenya
Kenya: VAT on digital services
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Not supported by the free-threshold API · Local term: VAT
Last verified: 2026-10-29
Non-resident suppliers of digital marketplace / electronic services to Kenyan users register with KRA (simplified iTax) from the first supply — no VAT registration threshold for non-residents — or appoint a tax representative. Charge 16% VAT on taxable digital marketplace supplies; file/pay by the 20th of the following month. Separate Digital Services Tax (DST) of 1.5% of gross transaction value (excluding VAT) also applies to non-residents without a Kenyan PE; DST is final tax for those non-residents
Nil-threshold regime
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Threshold and rates (VAT)
- Free threshold?
- No — Nil-threshold regime
- Amount / measure
- KES 0
No registration threshold for non-resident digital / electronic-service B2C suppliers — register from first in-scope supply - Window
- No threshold (from the first sale)
- Standard rate
- 16.0%
VAT 16% on taxable digital marketplace supplies. DST 1.5% is a separate tax on gross value (ex-VAT), not a VAT rate - Who must register
- Non-resident suppliers of taxable digital marketplace / electronic services used in Kenya
- Evidence of location
- Supplies to users in Kenya. KRA FAQs; keep Kenyan billing address, mobile/SIM, IP and payment indicators. Fixed multi-evidence checklist: Not specified in official English guidance as of 2026-10-29
- Invoicing
- Charge 16% VAT on taxable digital supplies once registered. Account for DST separately where applicable
- Filing
- VAT return and payment by the 20th day after the end of the month of supply (KRA). DST likewise by the 20th per KRA DST materials
- Effective
- VAT on digital marketplace supplies; DST framework per KRA guidance
- Authority
- Kenya Revenue Authority (KRA)
What Botchannels returns
- Ruleset version
2026-10-22.v1- Decision summary
- Botchannels does not open free-threshold sales here. Register (or appoint a representative) before selling.
- Product class
- Digital service
- Support status
- Not supported by the free-threshold API — Nil-threshold regime
How to register
- Self-register online?
- Yes — via iTax: New PIN Registration → Non-Individual → Online Form, flagging Digital Service Tax / VAT on digital marketplace supply. Alternatively appoint a Kenyan tax representative
- Resident representative / fiscal agent
- Optional alternative: you may appoint a Kenyan tax representative instead of (or as part of) simplified registration (KRA FAQs). Not the only path
- Regime
- KRA simplified registration for non-resident digital marketplace / electronic suppliers (iTax). Non-residents generally register even below the ordinary KES 5 million VAT threshold for digital marketplace supply — confirm current VAT (Electronic, Internet and Digital Marketplace Supply) Regulations
Steps (in order)
- Confirm taxable digital marketplace / electronic services to Kenyan users under the 2023 Regulations
- On iTax, start New PIN Registration (Non-Individual / Online Form); select Yes for Digital Service Tax/VAT on digital marketplace supply — https://www.kra.go.ke/
- Enter business, contact, ownership and bank details; upload a single PDF with certificate of incorporation/registration and foreign tax ID as the user guide requires
- After PIN approval by email, charge 16% VAT; file and pay by the 20th of the following month. Separately account for 1.5% DST if you have no Kenyan PE
Documents
- Certificate of incorporation / registration — Home-country evidence in the PDF upload required by the DST non-resident user guide
- Foreign tax identification — Include in the same supporting PDF
- Business / contact / website details — Name, tax contact, registered address, phone/email, website/URL as listed in the regulations / guide
- Official processing time
- KRA does not publish a single English service-level time for non-resident digital PIN approval on the pages reviewed as of 2026-10-29; PIN certificates are issued by email after approval
- Official fees
- No KRA registration fee summarised on the English digital-marketplace FAQ/guide reviewed; agent fees are commercial
- Portal
- https://www.kra.go.ke/
- Local bank account
- Bank details are collected on the iTax form; a Kenyan trading account is not described as mandatory for simplified digital VAT remittance — follow portal payment options
- Filing frequency
- Monthly. VAT (and DST where applicable) by the 20th of the following month
- Payment currency
- KES
- Input VAT recovery
- Simplified digital regimes typically remit output tax only; confirm with KRA / adviser
- Portal language
- English iTax / guides
- Penalties
- Non-registration and late filing/payment attract KRA penalties and interest under the VAT Act / Tax Procedures Act; confirm current rates with KRA
Firms offering this service
Non-exhaustive. Not an endorsement. Links checked live on 2026-10-29; confirm current offerings, licences, and fees directly with each firm before engaging
- KPMG East Africa (Kenya) — Member firm
- Deloitte East Africa (Kenya) — Member firm
Official sources
KRA — VAT on Digital Marketplace Supply FAQs
KRA — Demystifying Digital Services Tax
Last verified: 2026-10-29.
FAQ
- Is there a free VAT/GST threshold for foreign digital sellers?
- No — register from the first in-scope supply. Botchannels
- Is a local tax representative mandatory?
- Optional — you may appoint a representative; simplified iTax registration is also available
- What rate applies?
- 16% VAT; separate 1.5% DST may apply
- Is this tax advice?
- No. This page summarises official VAT/GST rules for foreign digital sellers. It is not tax or legal advice