Zoom Video Communications Inc has said it will begin charging Kenyan Value Added Tax (VAT) from August 1.
The teleconferencing services provider became a household name and investor favorite since the coronavirus pandemic, as businesses adopted its services to hold virtual office meets and socialise.
“Like many companies with a growing international presence, Zoom is routinely evaluating its indirect tax collection and remittance obligations,” the company said in a statement Monday.
“The application of these taxes to businesses with online activities is a complex and evolving area.”
“Zoom continues to review such developments, as well as the nature and extent of its activities in different jurisdictions, and, based on such regular review, will start charging indirect taxes where applicable,” the message read in part.
Kenya Revenue Authority (KRA) introduced the Finance Act 2020 Digital Service Taxes (DST) on income from services provided through the digital marketplace in Kenya and will be applied at 1.5 per cent on the gross transaction value.
Zoom to Acquire Five9
In other news, Zoom will buy the cloud contact centre provider Five9 in an all-stock deal valued at about $14.7 billion.
Zoom founder and CEO Eric Yuan said that the acquisition will accelerate the company’s long-term growth by adding the $24 billion contact centre market.
“Enterprises communicate with their customers primarily through the contact center, and we believe this acquisition creates a leading customer engagement platform that will help redefine how companies of all sizes connect with their customers,” Zoom founder and CEO Eric Yuan said in a statement.