27 April 2018 Kenya's Tax Appeals Tribunal rules that payments made by banks to international credit card companies are subject to VAT Kenya's Tax Appeals Tribunal (TAT) ruled on March 16 that value added tax (VAT) is due on transactions between banks and international credit companies, as well as on interchange fees payable by a merchant bank (Acquirer) to a card holder's bank (Issuer). The TAT had received submissions from a global banking entity (the Appellant) against the Commissioner of Domestic Taxes (the Respondent) on behalf of Kenya Revenue Authority. The TAT ruling relates to the tax treatment of fees paid by banks to international credit card companies as well as related local and international remittances paid by banks to issuers. Document ID: 2018-0907 |
