Value Added Tax Act 2013

PART II - SERVICES


The supply of the following services shall be exempt supplies-;

1. The following financial services-



(a) the operation of current, deposit or savings accounts, including the provision of account statements;

(b) the issue, transfer, receipt or any other dealing with money, including money transfer services, and accepting over the counter payments of household bills, but excluding the services of carriage of cash, restocking of cash machines, sorting or counting of money;

(c) issuing of credit and debit cards;

(d) automated teller machine transactions, excluding the supply of automated teller machines and the software to run it;

(e) telegraphic money transfer services;

(f) foreign exchange transactions, including the supply of foreign drafts and international money orders;

(g) cheque handling, processing, clearing and settlement, including special clearance or cancellation of cheques;

(h) the making of any advances or the granting of any credit;

(i) issuance of securities for money, including bills of exchange, promissory notes, money and postal orders;

(j) the provision of guarantees, letters of credit and acceptance and other forms of documentary credit;

(k) the issue, transfer, receipt or any other dealing with bonds, Sukuk debentures, treasury bills, shares and stocks and other forms of security or secondary security;

[Act No. 15 of 2017, s.9]



(l) the assignment of a debt for consideration;

(m) The provision of the above financial services on behalf of another on a commission basis.

(n) asset transfers and other transactions related to the transfer of assets into Real Estates Investment Trusts and Asset Backed Securities.

[Act No. 15 of 2017, s.9]



(o) any services set out in items (a) to (n) that are structured in conformity with Islamic finance.

[Act No. 15 of 2017, s.9]


2. Insurance and reinsurance services excluding the following-



(a) management and related insurance consultancy services.

(b) actuarial services; and

(c) services of insurance assessors and loss adjusters.


3. The supply of education services
For the purposes of this paragraph, education services means education provided by-



(a) a pre-primary, primary, or secondary school;

(b) a technical college or university;

(c) an institution established for the promotion of adult education, vocational training or, technical education but shall not apply in respect of business or user training and other consultancy services designed to improve work practices and efficiency of an organization.

4. Medical, veterinary, dental and nursing services.

5. Agricultural, animal husbandry and horticultural services.

6. Burial and cremation services.

7. Transportation of passengers by any means of conveyance excluding international air transport or where the means of conveyance is hired or chartered.


8. Supply by way of sale, renting, leasing, hiring, letting of land or residential premises;



"residential premises" means land or a building occupied or capable of being occupied as a residence, but not including hotel or holiday accommodation;

Provided that this paragraph shall not apply where such services are supplied in respect of-

(a) car park services; or

(b) conference or exhibition services, except where such services are provided for educational institutions as part of learning.

9. Community, social and welfare services provided by National Government, County Government or any political sub-division thereof.

10. Insurance agency, insurance brokerage, stock exchange brokerage and tea and coffee brokerage services.


11. The supply of-



(a) services rendered by educational, political, religious, welfare and other philanthropic associations to their members, or

(b) social welfare services provided by charitable organizations registered as such, or which are exempted from registration, by the Registrar of Societies under section 10 of the Societies Act (Cap. 108), or by the Non- Governmental Organizations Co-ordination Board under section 10 of the Non Governmental Organization Co-ordination Act (Cap. 134) and whose income is exempt from tax under paragraph 10 of the First Schedule to the Income Tax Act (Cap. 470), and approved by the Commissioner of Social Services:

Provided that this paragraph shall not apply where any such services are rendered by way of business.


12. The following entertainment services-



(a) stage plays and performances which are conducted by educational institutions, approved by the Cabinet Secretary for the time being responsible for education as part of learning;

(b) sports, games or cultural performances conducted under the auspices of the Ministry for the time being responsible for culture and social services.


13. Accommodation and restaurant services provided within the following premises by the proprietors thereof-



(a) establishments operated by an educational training institutions approved by the Cabinet Secretary for the time being responsible for education for the use of the staff and students by that institution; or

(b) establishments operated by a medical institution approved by the Cabinet Secretary for the time being responsible for health for the use by the staff and patients of such institutions; or

(c) canteens and cafeterias operated by an employer for the benefit of his employees.

14. Conference services conducted for educational institutions as part of learning where such institutions are approved by the Ministry for the time being responsible for Education.

15. Car park services provided by National Government, County Government, any political subdivision therefore by an employer to his employees on the premises of the employer.

16. The supply of airtime by any person other than by a provider of cellular mobile telephone services or wireless telephone services.

17. Betting, gaming and lotteries services.

18. Hiring, leasing and chartering of aircrafts.

18A. Transportation of sugarcane from farms to milling factories.

[Act No. 24 of 2016, s. 2.]



19. Deleted by Act No. 14 of 2015, s. 5.

20. Taxable services for direct and exclusive use in the implementation of official aid funded projects upon approval by the Cabinet Secretary to the National Treasury.

21. Services imported or procured locally for use by the local film producers or local film agents upon recommendation by the Kenya Film Commission, subject to approval by the Cabinet Secretary for the National Treasury.

[Act No. 38 of 2016, s. 30 (b)(i).]



22. Taxable services provided for direct and exclusive use in the construction and infrastructural works in industrial parks of one hundred acres or more including those outside special economic zones approved by the Cabinet Secretary for the National Treasury.

[Act No. 38 of 2016, s. 30 (b)(ii).]



23. Supply of sewerage' services by the national government, a county government, any political subdivision thereof or a person approved by the Cabinet Secretary for the time being responsible for water development.

24. Entry fees into the national parks and national reserves.

[Act No. 38 of 2016, s. 30 (b)(iii).]



25. The services of tour operators, excluding in-house supplies.

[Act No. 38 of 2016, s. 30 (b)(iv).]



26. Taxable services for direct and exclusive use for the construction of tourism facilities, recreational parks of fifty acres or more, convention and conference facilities upon the recommendation by the Cabinet Secretary responsible for matters relating to recreational parks.

[Act No. 38 of 2016, s. 30 (b)(iv).]



27. Taxable services for direct and exclusive use for the construction of specialized hospitals with accommodation facilities upon recommendation by the Cabinet Secretary responsible for health, who shall issue guidelines for the criteria to determine the eligibility for the exemption.

[Act No. 38 of 2016, s. 30 (b)(iv).]



28. Taxable services, procured locally or imported for the construction of liquefied petroleum gas storage facilities with a minimum capital investment of four billion shillings and a minimum storage capacity of fifteen thousand metric tonnes as approved by Cabinet Secretary for National Treasury upon recommendation by the Cabinet Secretary responsible for liquefied petroleum gas.

[Act No. 11 of 2017, Sch.]





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