Facebook Advertisers to Pay Tax Under The New law
Facebook advertisers to pay tax from April 1st, 2020
Kenya Revenue Authority (KRA) has made a bold move to makes sure they achieve their targets by making sure Kenyans pay the digital tax.
President Uhuru Kenyatta in December 2020 signed into law the 2020-21 Budget and the 2020 Finance Bill that will see Kenyans pay tax for the income they earn from digital platforms.
Facebook advertisers to pay tax
The taxman has moved with speed to make sure that all parties involved in digital business adhere to the new law. The latest to be affected are Facebook advertisers who run ads via the pages.
The new tax will be effective from April 1, 2021, this will see people running ads via their personal accounts get a VAT charge on top of their spending charge. This is to make sure that Facebook is compliant with the new Tax.
Those running ads for business they will be asked to self-assess and pay VAT at the local rate in accordance with Kenya regulations in order to avoid double taxation.
In a statement, the social media giant said that those who will not confirm that they are advertising for business purposes will be charged 16% on top of their ad spending.
“Due to implementation of a value-added tax (VAT) in Kenya, Facebook is required to charge VAT on the sale of ads to advertisers that are not advertising for business purposes in Kenya,”
“All advertisers with a business country of Kenya who has not confirmed they are advertising for business purposes will be charged an additional 16% VAT on advertising services purchased after 1 April 2021.” Read the statement in part.