Microsoft has announced that it will begin charging Value Added Tax (VAT), Digital Services Tax, for its Skype users in Kenya from Feb 1, 2022.
Skype is a video calling app. However, it has failed to keep up with other messaging rivals to date.
“Due to recent changes to Kenyan tax requirements, from 1st February 2022, Skype is required to include a 16 per cent Value Added Tax on purchases of Skype paid products for Kenyan customers,” it said to its users.
According to Microsoft, after Feb 1, it will cost USD 3.47 to subscribe on the platform from the current USD 2.99 which is not charged the 16 per cent.
Microsoft also operates the Team’s, it’s video conferencing app which became popular due to the Covid-19 pandemic.
In 2020, Skype introduced Meet Now, a new feature that allows one to make calls without having to sign up or download. The feature lets you set up a collaboration space and invite Skype as well as non-Skype contacts for video calls.
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 is applied at 1.5 per cent on the gross transaction value.
Other platforms that have complied include Zoom Video Communications Inc, FaceBook and Google.
Why You Need to Acquaint and Comply With KRA’s Digital Service Tax
