Starting this month, Facebook ads in Kenya will attract a 16 percent value-added tax (VAT).
‘’From November 2022, Meta ads in Kenya are subject to a value-added tax (VAT) at the applicable local tax rate. This applies to all advertisers whose “Sold to” country on their business or personal address is set to Kenya.” The Meta-owned company stated.
Kenyans can now sad their VAT ID in the payment settings. “If you’re registered for VAT and provide your VAT ID, your VAT ID will show up on your ads receipts. In the event that you’re entitled to recover VAT, this may help you recover any VAT you paid to the Kenyan tax authorities if you are a VAT-registered business in Kenya.”
According to Facebook, VAT will be added whenever you’re charged for your ads, regardless of whether you’re purchasing Meta ads for business or personal purposes.
“As VAT is added on top of charges, you won’t reach your billing threshold faster, but you may be charged more than your billing threshold amount. If you pay for Meta ads with a manual payment method, VAT is accounted for and applied at the applicable local rate when your ad account is funded to determine the total balance available.” The company continues in a statement.