List Of VAT Exempt Goods In Kenya
VAT-EXEMPT GOODS IN KENYA
Some of the most common VAT-exempt goods in Kenya include milk, eggs, meat, rice, maize, bread, beans, unprocessed vegetables, tubers, infant food formula, medicines, fertilizers, sanitary towels, and pharmaceuticals just to name a few.
Below is a list of VAT-exempt goods in Kenya according to their categories.
Materials used to prepare the cleaning dairy apparatus.
Mosquito nets Seeds for sowing, for example, cotton seeds, sunflower seeds, mustard seeds, sesamum seeds, safflower seeds, cola seeds, linseed, and mustard seeds. Inputs for the use in the manufacture of agricultural products Floriculture, Agriculture and Horticulture inputs Fertilizers Electrical Energy Saving bulbs Specialized solar accessories and equipment Hotel equipment marked, printed or engraved with any hotel logo Education as well as educational materials and articles Museums and exhibits Relief goods imported mainly for emergency use in areas where a natural calamity has occurred.
The importation must be made within a span of six months not exceeding 12 months. Speed governors Computer software and media that contains computer software Plants and machinery designed specifically for garbage collection are some examples of VAT-exempt vehicles.
Exempt services Persons who deal exclusively in exempt supplies are not liable to register for VAT or claim input tax on the supplies.
*List of VAT-exempt transactions and VAT-exempt services in Kenya*
1. The following financial services have VAT exempted The operation of current, deposit, or savings accounts as well as the provision of account statements. Issuing of credit and debit cards. ATM transactions exclude the supply of the machines and the software to run them. Cheque handling, processing, clearing as well as cancellation of cheques.
2. Insurance and reinsurance services excluding actuarial services, management, and related insurance consultancy services and services of loss adjusters.
3. The supply of education services
4. Medical, dental, veterinary, and nursing services.
5. Agricultural and horticultural services.
6. Burial and cremation services.
7. Transportation of passengers by any means excluding international air transport.
8. Supply by way of sale, leasing, renting, letting, or hiring land or residential premises.
9. Community, social, and welfare services provided by National Government or County Government.
10. Stock exchange brokerage as well as tea and coffee brokerage services.
11. The supply of services rendered by educational, religious, welfare, political and other philanthropic associations to their members.
12. Stage and cultural performances are conducted by educational institutions and approved by the Cabinet Secretary for education as part of the learning curriculum.
13. Accommodation and restaurant services provided or operated by educational training institutions and also approved by the Cabinet Secretary.
14. Conference services conducted for educational institutions.
15. Car park services rendered by National Government, County Government.
16. The supply of airtime by any person other than the provider of cellular mobile telephone services or wireless telephone services.
17. Leasing, hiring, and chartering of aircraft
Based on the above list of VAT-exempt goods in Kenya and VAT-exempt services in Kenya, Kenyans can now easily identify the goods that are taxed at 8%, 16%, or 0%. Zero rating makes supplies cheaper since the tax rate is zero. On the other hand, exempt supplies are not taxable, therefore suppliers dealing in exempt supplies do not have to register for VAT because they are not liable for tax deductions.