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Google Begins Collection of KRA Pins To Implement 16% VAT on Online Payments

Domenic Ntoogo by Domenic Ntoogo
January 6, 2023
in News
Reading Time: 1 min read
Google

[Photo/ Courtesy]

Google has commenced the process of implementing the 16% VAT on online payments of good and services.

The tech giant has asked Kenyans to submit their Kenya Revenue Authority (KRA) pins by uploading them on their payment profiles.

“Please update your Kenya PIN number in your Google payments profile. Once updated, you should start seeing the PIN number on your Google invoices,” said Google.

“We recommend providing your PIN number as soon as possible to ensure our invoice includes this information.”

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The company has threatened that those who do not provide the details by February 1 will encounter challenges in the processing of their invoices.

“Failure to provide your PIN number by February 1, 2023 may cause issues with invoice validity and possible implications for recovery of VAT costs, if you are entitled to reclaim,” said the company.

The move by google is a result of government’s move to introduce a 16% VAT on all taxable good and services through the Digital Marketplace Supply Amendment Regulation of 2022.

Thus the company will begin collecting taxes on behalf of the government in February to make it compliant with the amendment.

“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,” it said.

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