IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 03 Apr 2017 | Removal date: open ended
Still in force

Localisation incentive

Effective from 3 April 2017, the government of Kenya under Finance Act 2017, introduced amendments to the VAT Act that are specifically relevant to the GTA scope.

Specifically, motor vehicles that are assembled locally and are exclusively used for the transportation of tourists, are as per Finance Act 2017, for the first time exempted from Value Added Tax-related obligations. Nevertheless, in order to benefit from the highlighted VAT relief the locally assembled vehicles must meet the following conditions :

  • They must  be registered under, and operated by an entity that is licensed from the Tourism Vehicle Regime;
  • They must exclusively be used for the transportation of tourists;
  • They must possess provisions for camping, rescue and first aid equipment, luggage, compartments and communication fittings; 
  • They must comply with all condition which the Commissioner may impose eventually.

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

491 Motor vehicles, trailers & semi-trailers; parts

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