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Tribunal rules switching services exempt from VAT in blow to KRA
Business

Tribunal rules switching services exempt from VAT in blow to KRA

The judgment arose from a case filed by Kenswitch, which was contesting a Sh41.6 million VAT demand on income earned from switching fees. Kenswitch manages interbank ATM and point-of-sale connectivity, allowing cardholders to access banking services across different institutions. The tax agency insisted that the firm’s income was tied to technology services and should attract VAT.