By Khalifa Hemed
Published November 2, 2022

Meta, the owners of Facebook, Instagram and WhatsApp, has notified advertisers in Kenya that they shall pay ValueAdded Tax for all adverts, whether for commercial or non-commercial purposes with effect from November 1, 2022.Meta, the owners of Facebook, Instagram and WhatsApp, has with effect from November 2, 2022 started collecting Value Added Tax from advertisements in Kenya.

Meta says all adverts on Facebook, Instagram and WhatsApp, whether for commercial or non-commercial purposes, attract 16% VAT with effect from November 1, 2022.

“Due to updates to value-added tax (VAT) laws in Kenya, Meta is required to charge VAT on the sale of ads to advertisers, regardless of whether you’re buying ads for business or personal purposes. All advertisers with a business country of Kenya will be charged an additional 16% VAT on advertising services purchased beginning 1 November 2022;” Meta says in a notice to advertisers.

RELATED: State Changes Tune on Sh100 Million Grant to Artists During COVID-19 Period

Meta says “VAT is added whenever you’re charged for your ads, regardless of whether you’re purchasing Meta ads for business or personal purposes. As VAT is added on top of charges, you won’t reach your billing threshold faster, but you may be charged more than your billing threshold amount. If you pay for Meta ads with a manual payment method, VAT is accounted for and applied at the applicable local rate when your ad account is funded to determine the total balance available.”

RELATED: Africa’s Extended Reality Creators Showcase Their Work

whatsapp chat service“If you’re registered for VAT and provide your VAT ID,” Meta says, “your VAT ID will show up on your ads receipts. In the event that you’re entitled to recover VAT, this may help you recover any VAT you paid to the Kenyan tax authorities if you are a VAT registered business in Kenya.”

Meta then explains to its advertisers how to add their VAT ID to their Meta ad accounts or get details on the Kenya VAT from its Meta Business Help Centre.

RELATED: Blockchain Technology Helps Prevent Duplicate Payouts in the Insurance Industry