New tax on Digital Markets under new law


Kenya will start levying new tax on digital markets under a new law signed by the President early in November. The Finance Act seeks to broaden the Income Tax Act net to include income accruing through a digital market place. The law defines the digital marketplace as “a platform that enables direct interactions between buyers and sellers of goods and services through electronic means.” In addition, a similar change has been made to the VAT Act making digital market services subject to value-added tax. It’s not clear yet who will be affected or how the…

Read More

European Court of Justice to Rule If Bitcoin is VATable

The European Court of Justice will rule if bitcoin transactions are subject to its value-added tax rules (VAT). If that top court decides to impose VAT regulations on member nations with bitcoin businesses, they could suffer an economic setback. Others could miss out on the opportunity to establish business initiatives associated with bitcoin. VAT is one way the EU raises tax revenues. It’s essentially a consumption tax, paid by buyers as part of the purchase price. That case before the Court is C-264/14 Skatteverket v David Hedqvist and it raises the issue:…

Read More