KRA imposing taxes on cloud services for individuals?
Does this mean you'd be billed VAT inclusive for your web hosting, Angani, dropbox, google apps & cloud..... ------------------------------------------- Dear AWS Customer, Due to changes in Kenyan value added tax ("VAT") legislation, sales of electronically supplied services to non-business customers located in Kenya may be subject to VAT. If you qualify as a business customer and would like to ensure that you are not charged VAT on AWS offerings, please respond to this email with your account number and your company's valid Kenyan Personal Identification Number. Sincerely, Amazon Web Services
This is interesting. On 8 Apr 2015 12:58, "Sammy Njoroge via skunkworks" < skunkworks@lists.my.co.ke> wrote:
Does this mean you'd be billed VAT inclusive for your web hosting, Angani, dropbox, google apps & cloud.....
-------------------------------------------
Dear AWS Customer,
Due to changes in Kenyan value added tax (“VAT”) legislation, sales of electronically supplied services to non-business customers located in Kenya may be subject to VAT.
If you qualify as a business customer and would like to ensure that you are not charged VAT on AWS offerings, please respond to this email with your account number and your company’s valid Kenyan Personal Identification Number.
Sincerely, Amazon Web Services
_______________________________________________ skunkworks mailing list skunkworks@lists.my.co.ke ------------ List info, subscribe/unsubscribe http://lists.my.co.ke/cgi-bin/mailman/listinfo/skunkworks ------------
Skunkworks Rules http://my.co.ke/phpbb/viewtopic.php?f=24&t=94 ------------ Other services @ http://my.co.ke
Am not surprised at all. "Milking!!" On 8 Apr 2015 18:41, "Josiah Mugambi via skunkworks" < skunkworks@lists.my.co.ke> wrote:
This is interesting. On 8 Apr 2015 12:58, "Sammy Njoroge via skunkworks" < skunkworks@lists.my.co.ke> wrote:
Does this mean you'd be billed VAT inclusive for your web hosting, Angani, dropbox, google apps & cloud.....
-------------------------------------------
Dear AWS Customer,
Due to changes in Kenyan value added tax (“VAT”) legislation, sales of electronically supplied services to non-business customers located in Kenya may be subject to VAT.
If you qualify as a business customer and would like to ensure that you are not charged VAT on AWS offerings, please respond to this email with your account number and your company’s valid Kenyan Personal Identification Number.
Sincerely, Amazon Web Services
_______________________________________________ skunkworks mailing list skunkworks@lists.my.co.ke ------------ List info, subscribe/unsubscribe http://lists.my.co.ke/cgi-bin/mailman/listinfo/skunkworks ------------
Skunkworks Rules http://my.co.ke/phpbb/viewtopic.php?f=24&t=94 ------------ Other services @ http://my.co.ke
_______________________________________________ skunkworks mailing list skunkworks@lists.my.co.ke ------------ List info, subscribe/unsubscribe http://lists.my.co.ke/cgi-bin/mailman/listinfo/skunkworks ------------
Skunkworks Rules http://my.co.ke/phpbb/viewtopic.php?f=24&t=94 ------------ Other services @ http://my.co.ke
This interesting, Cloud is a big space and cloud computing will shape how we consume IT Resources, This a billion dollar segment and thus tax man interest. Apparently taxable items are not easy to understand, I guess KRA has no online product classification reference guide, which should be in place to guide any business person. For cloud services, Have seen Local service providers levy VAT on domains, web-hosting and associated cloud services. for example below from Safaricom http://www.safaricom.co.ke/business/cloud-computing/data-centre-as-a-service <goog_154266560> http://www.safaricom.co.ke/business/cloud-computing/safaricom-backup-as-a-se... For imported cloud services, Am surprised by AWS email, can this be termed as "Imported Cloud Service". How would Tax Man collect VAT that i would pay AWS..? which is US company and not within Kenyan Regulations, Could this open another channel for Tax Man loosing Tax ------------------------------ On Wed, Apr 8, 2015 at 12:49 PM, Sammy Njoroge via skunkworks < skunkworks@lists.my.co.ke> wrote:
Does this mean you'd be billed VAT inclusive for your web hosting, Angani, dropbox, google apps & cloud.....
-------------------------------------------
Dear AWS Customer,
Due to changes in Kenyan value added tax (“VAT”) legislation, sales of electronically supplied services to non-business customers located in Kenya may be subject to VAT.
If you qualify as a business customer and would like to ensure that you are not charged VAT on AWS offerings, please respond to this email with your account number and your company’s valid Kenyan Personal Identification Number.
Sincerely, Amazon Web Services
_______________________________________________ skunkworks mailing list skunkworks@lists.my.co.ke ------------ List info, subscribe/unsubscribe http://lists.my.co.ke/cgi-bin/mailman/listinfo/skunkworks ------------
Skunkworks Rules http://my.co.ke/phpbb/viewtopic.php?f=24&t=94 ------------ Other services @ http://my.co.ke
Bringing this up again; Did taxing of Cloud Services come in the budget 2015/16? Especially foreign cloud services? thanks Alex On Thu, Apr 9, 2015 at 6:14 AM, Josy Ngatia via skunkworks < skunkworks@lists.my.co.ke> wrote:
This interesting,
Cloud is a big space and cloud computing will shape how we consume IT Resources, This a billion dollar segment and thus tax man interest.
Apparently taxable items are not easy to understand, I guess KRA has no online product classification reference guide, which should be in place to guide any business person.
For cloud services, Have seen Local service providers levy VAT on domains, web-hosting and associated cloud services. for example below from Safaricom
http://www.safaricom.co.ke/business/cloud-computing/data-centre-as-a-service <http://goog_154266560>
http://www.safaricom.co.ke/business/cloud-computing/safaricom-backup-as-a-se...
For imported cloud services, Am surprised by AWS email, can this be termed as "Imported Cloud Service". How would Tax Man collect VAT that i would pay AWS..? which is US company and not within Kenyan Regulations, Could this open another channel for Tax Man loosing Tax
------------------------------
On Wed, Apr 8, 2015 at 12:49 PM, Sammy Njoroge via skunkworks < skunkworks@lists.my.co.ke> wrote:
Does this mean you'd be billed VAT inclusive for your web hosting, Angani, dropbox, google apps & cloud.....
-------------------------------------------
Dear AWS Customer,
Due to changes in Kenyan value added tax (“VAT”) legislation, sales of electronically supplied services to non-business customers located in Kenya may be subject to VAT.
If you qualify as a business customer and would like to ensure that you are not charged VAT on AWS offerings, please respond to this email with your account number and your company’s valid Kenyan Personal Identification Number.
Sincerely, Amazon Web Services
_______________________________________________ skunkworks mailing list skunkworks@lists.my.co.ke ------------ List info, subscribe/unsubscribe http://lists.my.co.ke/cgi-bin/mailman/listinfo/skunkworks ------------
Skunkworks Rules http://my.co.ke/phpbb/viewtopic.php?f=24&t=94 ------------ Other services @ http://my.co.ke
_______________________________________________ skunkworks mailing list skunkworks@lists.my.co.ke ------------ List info, subscribe/unsubscribe http://lists.my.co.ke/cgi-bin/mailman/listinfo/skunkworks ------------
Skunkworks Rules http://my.co.ke/phpbb/viewtopic.php?f=24&t=94 ------------ Other services @ http://my.co.ke
In the short term, companies in Eastern Africa and Government will need to talk/harmonize taxes for IT Service business done cross border. If say Rwanda has a data center acting as my DR, what happens if I pay withholding tax for my annual invoice? Second is for the same service for my subsidiary with a DR along MSA Rd how will we be reconciling taxes for it for 18% VAT in Rwanda. Anyway, we need a tax consultant for this. -----Original Message----- From: "Kisakye Alex via skunkworks" <skunkworks@lists.my.co.ke> Sent: 6/18/2015 12:20 To: "Josy Ngatia" <josyveros@gmail.com>; "Skunkworks Mailing List" <skunkworks@lists.my.co.ke> Subject: Re: [Skunkworks] KRA imposing taxes on cloud services forindividuals? Bringing this up again; Did taxing of Cloud Services come in the budget 2015/16? Especially foreign cloud services? thanks Alex On Thu, Apr 9, 2015 at 6:14 AM, Josy Ngatia via skunkworks <skunkworks@lists.my.co.ke> wrote: This interesting, Cloud is a big space and cloud computing will shape how we consume IT Resources, This a billion dollar segment and thus tax man interest. Apparently taxable items are not easy to understand, I guess KRA has no online product classification reference guide, which should be in place to guide any business person. For cloud services, Have seen Local service providers levy VAT on domains, web-hosting and associated cloud services. for example below from Safaricom http://www.safaricom.co.ke/business/cloud-computing/data-centre-as-a-service http://www.safaricom.co.ke/business/cloud-computing/safaricom-backup-as-a-se... For imported cloud services, Am surprised by AWS email, can this be termed as "Imported Cloud Service". How would Tax Man collect VAT that i would pay AWS..? which is US company and not within Kenyan Regulations, Could this open another channel for Tax Man loosing Tax ------------------------------ On Wed, Apr 8, 2015 at 12:49 PM, Sammy Njoroge via skunkworks <skunkworks@lists.my.co.ke> wrote: Does this mean you'd be billed VAT inclusive for your web hosting, Angani, dropbox, google apps & cloud..... ------------------------------------------- Dear AWS Customer, Due to changes in Kenyan value added tax (“VAT”) legislation, sales of electronically supplied services to non-business customers located in Kenya may be subject to VAT. If you qualify as a business customer and would like to ensure that you are not charged VAT on AWS offerings, please respond to this email with your account number and your company’s valid Kenyan Personal Identification Number. Sincerely, Amazon Web Services _______________________________________________ skunkworks mailing list skunkworks@lists.my.co.ke ------------ List info, subscribe/unsubscribe http://lists.my.co.ke/cgi-bin/mailman/listinfo/skunkworks ------------ Skunkworks Rules http://my.co.ke/phpbb/viewtopic.php?f=24&t=94 ------------ Other services @ http://my.co.ke _______________________________________________ skunkworks mailing list skunkworks@lists.my.co.ke ------------ List info, subscribe/unsubscribe http://lists.my.co.ke/cgi-bin/mailman/listinfo/skunkworks ------------ Skunkworks Rules http://my.co.ke/phpbb/viewtopic.php?f=24&t=94 ------------ Other services @ http://my.co.ke
participants (6)
-
Alvin Jason Ochieng -
David Kandie -
Josiah Mugambi -
Josy Ngatia -
Kisakye Alex -
Sammy Njoroge