Google has asked Kenyans to submit their Kenya Revenue Authority (KRA) Pin ahead of the implementation of a 16% value-added tax (VAT). The tech giant has requested that users upload their pins on their Google payments profile. Those who fail to update their profiles by February 1, 2023 may face issues with invoice validity and potentially have implications for recovery of VAT costs if they are entitled to reclaim.
The announcement comes in anticipation of the introduction of the 16% VAT on all taxable goods and services on the platform. Google will start collecting taxes on behalf of the National Government from February 1, 2023, which will increase the cost of products and services.
This follows the government’s introduction of the VAT (Digital Marketplace Supply) (Amendment) Regulation 2022. In a statement, Google said, “Due to new tax legislation in Kenya, starting February 1, 2023, Google will be required to charge a 16% tax on all taxable goods and services.”
Google has advised users to update their Kenya PIN number in their Google payments profile as soon as possible to ensure that their invoices include this information. The company stated that failure to provide the PIN number may cause issues with invoice validity.
Google has not commented on the rollout of the VAT or the request for KRA Pins. It is unclear how the new tax legislation and collection of taxes on behalf of the National Government will impact sellers and users on the platform.
