Section 10

Treatment of imported services 

(1) If a supply of imported taxable services is made to a registered person any person*, the registered person person* shall be deemed to have made a taxable supply to himself.  Finance Act, 2019 Effective 7th November 2019*   (Finance Act 2021- wef-01July2021**)

(1A) The provisions of subsection (1) shall not apply to taxable supplies made under section 5(7). (Finance Act 2022-wef-01-July-2022)   

(2) If a registered person referred to in subsection (1) the person referred to in subsection (1) is a registered person and* is entitled to – (Finance Act 2021- wef-01July2021*)

• (a) a credit for part of the amount of input tax payable, the value of the taxable supply under subsection (1) shall be reduced by an amount equal to the supply that is entitled for the input tax credit; or 
• (b) a full input tax credit payable on the imported taxable services under subsection (1), the value of the taxable services shall be reduced to zero. 

(3) The output tax in respect of a deemed taxable supply under subsection (1) shall be payable by the registered person any  person* ** at the time of the supply. Finance Act, 2019Effective 7th November 2019*   (Finance Act 2021- wef-01July2021**)

(4) For the purposes of this section, if a registered person carries on a business, both in and outside Kenya, the part of the business carried on outside Kenya shall be treated as if it were carried out by a person separate from the registered person.

Previous         Next