Business Registration Updates

  1. Beneficial Owners Form
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2. Value Added tax is not payable on a transaction for the Sale or Purchase of Land

On 29 November 2018, High Court Judge Lady Justice Mary Kasango delivered a judgment in the case of David Mwangi Ndegwa vs. the Kenya Revenue Authority (Civil Suit No. 541 of 2015) . In brief, Mr. Ndegwa had brought an action against the KRA seeking a declaration that Value Added Tax (VAT) is not payable on a transaction for the sale or purchase of land, regardless of whether or not the buildings standing on it are residential or commercial. Mr. Ndegwa had also sought a VAT refund of KES 11,200,000 that he had paid for the purchase of a commercial property. The key question for determination was whether a transfer of commercial premises is a taxable or exempt supply under the provisions of Part II, paragraph 8 of the First Schedule to the VAT Act.

Click here to read the legal alert for a detailed analysis of the case.