Tribunal rules switching services exempt from VAT in blow to KRA
Business
Tribunal rules switching services exempt from VAT in blow to KRA
The judgment arose from a case filed by Kenswitch, which was contesting a Sh41.6 million VAT demand on income earned from switching fees. Kenswitch manages interbank ATM and point-of-sale connectivity, allowing cardholders to access banking services across different institutions. The tax agency insisted that the firm’s income was tied to technology services and should attract VAT.
By Maureen Kinyanjui