A-ZERO RATED SUPPLIES
Where the following supplies, excluding hotel accommodation, restaurant or entertainment services where applicable, take place in the course of a registered person's business, they shall be zero rated in accordance with the provisions of Section 7 –1. The exportation of goods
2. The supply of goods or taxable services to an export processing zone business as specified in the Export Processing Zones Act (Cap.517), as being eligible for duty and tax free importation.
3. Ship stores supplied to international sea or air carriers on international voyage or flight.
4. The supply of coffee and tea for export to coffee or tea auction centers.
5. Transportation of passengers by air carriers on international flight.
6. The supply of taxable services to international sea or air carriers on international voyage or flight.
7.
8.
9. Goods purchased from duty free shops by passengers departing to places outside Kenya.
10. Supply of taxable services in respect of goods in transit.
11. Inputs or raw materials (either produced locally or imported) supplied to pharmaceutical manufacturers in Kenya for manufacturing medicaments, as approved from time to time by the Cabinet Secretary in consultation with the Cabinet Secretary responsible for matters relating to health.
12. The supply of goods or taxable services to a special economic zone enterprise. Finance Act, 2016 effective 9th June 2016
13. The supply of liquefied petroleum gas including propane.
13A
The supply of ordinary bread.
13B
14. Taxable goods supplied to marine fisheries and fish processors upon recommendation by the relevant state department. Finance Act, 2017 Effective 3rd April 2017 Tax laws (Amendment) Act, 2018 Effective 1 July 2018
15*. Milk and cream, not concentrated nor containing added sugar or other sweetening matter, of tariff numbers
All inputs and raw materials whether produced locally or imported, supplied to manufacturers of agricultural pest control products upon recommendation by the Cabinet Secretary for the time being responsible for agriculture. Finance Act, 2017 Effective 3rd April 2017 Deleted by (TLAA 2024 wef 27th December, 2024 S22)
15*. Milk and cream, not concentrated nor containing added sugar or other sweetening matter, of tariff numbers
- 0401.10.00 – of a fat content, by weight not exceeding 1%;
- 0401.20.00 – of a fat content by weight, exceeding 1% but not exceeding 6%;
- 0401.40.00 – of a fat content by weight exceeding 6% but not exceeding 10%;
- 0401.50.00 – of a fat content by weight exceeding 10% Finance Act, 2017 Effective 3rd April 2017*
17. Agricultural pest control products Finance Act, 2017 Effective 3rd April 2017 , Tax laws (Amendment) Act, 2018 Effective 1 July 2018
18. Inputs of raw materials for electric accumulators and separators including lead battery separator rolls whether or not rectangular or square supplied to manufacturers of automotive and solar batteries in Kenya.Tax laws (Amendment) Act, 2018 Effective 1 July 2018 , (Finance Act 2020- wef-01January2021)
19.Agricultural pest control products. Finance Act, 2019 Effective 7th November 2019Deleted by (TLAA 2024 wef 27th December, 2024 S16)
20. The supply of maize (corn) flour, cassava flour, wheat or meslin flour and maize flour containing cassava flour by more than ten percent in weight: Provided this paragraph shall be in operation for a period of six months from the date of assent.
18. Inputs of raw materials for electric accumulators and separators including lead battery separator rolls whether or not rectangular or square supplied to manufacturers of automotive and solar batteries in Kenya.
19.
**6months mentioned above ends on 31December 2020. The 6months period has been removed in par22 below**(Finance Act 2023 wef 1st-July-2023 s38 has further deleted this section yet it was amended as below)
20.The transportation of goods originating from Kenya to a place outside Kenya.(Finance Act 2021- wef-01July2021)
21. Transportation of sugarcane from farms to milling factories.(Finance Act 2021- wef-01July2021)
22. The supply of maize (corn) flour, cassava flour, wheat or meslin flour and maize flour containing cassava flour by more than ten percent in weight.(Finance Act 2021- wef-01July2021)
23. The exportation of taxable services in respect of business process outsourcing*. (Finance Act 2022-wef-01-July-2022) Amended by(Finance Act 2023 wef 1st-July-2023 s38*)
24. Fertilizers of chapter 31. (Finance Act 2022-wef-01-July-2022)Deleted by (TLAA 2024 wef 27th December, 2024 S16)
25. Inputs or raw materials locally purchased or imported by manufacturers of fertilizer as approved from time to time by the Cabinet Secretary responsible for Agriculture. (Finance Act 2022-wef-01-July-2022)Deleted by (TLAA 2024 wef 27th December, 2024 S16)
26. Inbound international sea freight offered by a registered person. (Finance Act 2023 wef 1st-July-2023 s38)
27. Liquefied Petroleum Gas. (Finance Act 2023 wef 1st-July-2023 s38)
28. All tea and coffee locally purchased for the purpose of value addition before exportation subject to approval by the Commissioner-General. (Finance Act 2023 wef 1st-July-2023 s38)
29. The supply of locally assembled and manufactured mobile phones. (Finance Act 2023 wef 1st-July-2023 s38)
30. The supply of motorcycles of tariff heading 8711.60.00 (Finance Act 2023 wef 1st-July-2023 s38)
31. The supply of electric bicycles. (Finance Act 2023 wef 1st-July-2023 s38)
32. The supply of solar and lithium ion batteries. (Finance Act 2023 wef 1st-July-2023 s38)
33. The supply of electric buses of tariff heading 87.02. (Finance Act 2023 wef 1st-July-2023 s38)
34. Inputs or raw materials locally purchased or imported for the manufacture of animal feeds. (Finance Act 2023 wef 1st-July-2023 s38)
35. Bioethanol vapour (BEV) Stoves classified under HS Code 7321.12.00 (cooking appliances and plate warmers for liquid fuel). (Finance Act 2023 wef 1st-July-2023 s38)
Comments
Post a Comment