List Of Zero Rated Goods In Kenya
Zero-rated goods are products that are exempt from value-added taxation (VAT). Countries designate products as zero-rated because they are leading contributors to other manufactured goods and a significant component of a broader supply chain.
In this article Keweb.co tries to answer the question by publishing the full list of Zero Rated Goods in Kenya
Below is the complete List of the Zero Rated Goods 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.
What goods are VAT exempt in Kenya?
The term “exempt supplies” refers to supplies of goods and services that are not liable to VAT and that do not qualify for an input tax deduction.
- Unprocessed agricultural products.
- Direction-finding compasses.
- Passenger baggage.
- Financial Services.
- Insurance.
- Medical services.