Video-conferencing app, Zoom will start charging VAT for its services effective August 1. The company is registered with KRA as a non-resident supplier of electronic services. It is among a host of companies obligated to remit the 5 percent digital tax which was implemented in January this year.
The move will most likely affect corporate companies who use the services from zoom. Basic account users can host up to a maximum of 100 participants per meeting. Pro users can host more people, and have more features.
“Like many companies with a growing international presence, Zoom is routinely evaluating its indirect tax collection and remittance obligations,” the company said.
“The application of these taxes to business with online activities is a complex and evolving area.”
The company said it was reviewing such developments in various countries as well as the extent of its activities.
Zoom will collect tax from the users and remit the taxes to KRA. If you are a registered VAT user, you only need to provide the company with your KRA PIN as proof, to avoid being taxed for their services.
Zoom became popular at the peak of the Covid-19 pandemic after numerous corporate organizations around the world opted for a work-from-model in efforts to curb the spread of the virus.