Exemption and Zero Rating

Question 1

Validity period of Remissions granted in cap 476?

Answer 1

5 years from commencement of VAT act 2013

Question 2

what are the zero Rated Supplies to public bodies, privileged persons and institutions?

Answer 2

Commonwealth
Goods for use by armed forces of allies
goods for use of navy of another commonwealth govt

taxable supplies of high official of UN or diplomatic official
supplies

Diplomats
household goods
motor vehicles

taxable supplies for the official use of the UN, Foreign embassy or consulate

Donor agencies
household and personal effects
motor vehicle

International and regional organisations eg AU, EAC
Goods and equipment for official use

War Graves Commission
National Red Cross Society and St Johns Ambulance
Supply of PPE

Diplomatic mission in Kenya
commonwealth high commission

Question 3

Types of Exemptions of Goods

Answer 3

Musical instruments for educational institutions
solar equipment
goods/services imported for official aid funded projects
Filming agents
Construction of tourism facilities/recreational parks/convention facilities
Inputs for agricultural machinery
construction and equipping hospitals
Beverages for KDF canteen
supply of natural water
aircraft spare parts for aircraft garage
inputs for manufacture of pesticide
specially designed locally assembled motor vehicle for transportation of tourists
betting, gaming and lottery
hiring, leasing, chartering aircraft
sewerage services
entry fees into national parks and reserves
tour operators
exportation of taxable service
transfer of assets to REITS

Question 4

Types of Exemptions of Services

Answer 4

Banking - operation of accounts
issuing of credit/debit cards
ATM transactions
telegraphic money transfers
foreign exchange transactions
cheque handling, processing, clearing and settlement
granting of credit
issuance of securities for money
provision of guarantees, letter of credit
dealing with bonds, T-bills, shares, stock
Insurance and reinsurance services
Education services - pre-primary, primary, secondary, college/uni, gumbaru
Medical/vet/dental/ambulance/nursing
Agricultural/animal husband
burial/cremation
passenger transportation except international air transport
sale, renting, leasing land or residential premises
tea and coffee borkerage

Question 5

types of zero rated supplies?

Answer 5

exportation of goods
supply of goods or service to EPZ business
coffee and tea to auction centre
transportation of passengers by air on international flight
supply of services to international air carriers
duty free shops
taxable service of goods in transit
inputs for medicaments
SEZ
milk and cream
inputs to manufacturers of agric pest control
pest control products
transportation of goods originating Kenya to outside Kenya
supply of maize
transport of sugarcane from farms to milling factories