V.A.T. Act 2007 - Kenya Revenue Authority

Rev. 2007 VALUE ADDED TAX CAP 476
FIFTH SCHEDULE
ZERO-RATING
Part A – Zero Rated Supplies
S. 8(2)
9 of 1992 S.30
9 of 1993 S.30
LN 218/1993
6 of 2001 S.40
7 of 2002 S.34
15 of 2003 S.27
6 of 2005 S.16
10 of 2006 S.12
Where, subject to the satisfaction of the Commissioner, the following supplies take
place in the course of a registered person's business, they shall be zero rated in
accordance with the provisions of Section 8:
1. The exportation of goods and taxable services.
2. The supply of goods or taxable services to designated foreign aid funded
capital investment projects where the agreement specifically provides for tax
exemption, provided that the supplies are acquired prior to payment of taxes.
3. The supply of goods or taxable services to an export processing zone enterprise
as specified in the Export Processing Zones Act (Cap.517), as being eligible
for duty and tax free importation.
4. The supply of goods to any person or organization specified in the Eighth
Schedule or taxable services to persons or organizations specified in Part C of
the Eighth Schedule.
5. Shipstores supplied to international sea and air carriers on international voyage
or flight.
6. The supply of goods and taxable services to exporters under conditions
prescribed by the Commissioner.
7. The supply of taxable goods or taxable services under a contract to an official
aid funded project where the agreement specifically provides for the remission
of tax.
8. Services supplied by hotel establishments to foreign travel and tourism
promoters undertaking a tour in the promotion of tourism in Kenya provided
that the tour is recommended by the Director of Tourism and conducted in
conjunction with local tour associations in accordance with a predetermined
written itinerary.
9. The supply of coffee and tea for export to coffee and tea auction centers.
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