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Kenyans to pay more for Zoom calls as VAT tax rules take effect
Kenyans will from next month pay more to attend online meetings and webinars via Zoom after the video communications platform increased its service charges, following the government’s imposition of a 16 per cent Value Added Tax (VAT) on electronic services. Zoom currently prices its lowest video conferencing licences at Ksh15,000 (about $150) and the highest priced licences sell at Ksh25,000 ($250) per year.
This means that the addition of the VAT, which is a consumption tax borne by the final consumer, will see Kenyan individuals and companies pay at least Ksh2,500 ($25) more for the cheapest package and at least Ksh4,100 ($41) more for the highest priced package. However, Kenyans registered for VAT will be exempted from paying the tax. Individuals and firms that supply or expects to supply taxable goods and services worth at least Ksh5 million ($50,000) in a year are mandated by the Kenya Revenue Authority (KRA) to register for VAT.

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