Google will from April 8th, 2021 start taxing 16pc Value Added Tax(VAT) for Google Play purchases in Kenya.
This is in line with the Kenyan Government introducing the digital tax law in Kenya in January 2021.
Google will determine, charge and then remit the 16pc VAT for Play Store paid app and in-app purchases made in Kenya, this means that prices shown on Google Play will include all taxes.
This means Kenyans will now have to pay more to download paid mobile apps and consequently dish out more for in-app purchases via Google Play.
Google says even Kenyans in the diaspora will still have to cater to the digital tax charge on their purchases.
Facebook has also said they will start applying the new digital taxes to remain compliant Starting April 2021
Other digital utilities, such as taxi-hailing and e-commerce platforms are soon expected to follow.