The Kenya Revenue Authority (KRA) has released a comprehensive list of digital services that will attract the 1.5 percent digital service tax on gross transaction value. The digital tax, which took effect on January 2, 2021 will affect subscription based media including online news and magazines subscriptions as well as online ticketing services.
Mobile apps, ebooks and films will also attract the tax among the following items.
- Streaming services for TV shows, films, music, podcasts and other available digital content.
- Provision of search engine services, chatbots, remote support, instant feedback services and customized search engine services.
- Licensing, sales and other forms of monetizing data collected from Kenyan users.
- Online training delivered through pre-recorded media or e-learning platforms and courses.
- Any services provided through the digital marketplace.
Popular services in the country such as Netflix will now attract the 1.5 percent digital tax, meaning the prices are set to increase.
Government services such as those that facilitate for payment of services, lending, trading of financial instruments and commodities will not attract the tax. Also exempted are foreign exchange services provided by a licensed financial institution or financial services provider.