New VAT Rule for Kenyan ChatGPT Users + Digital Tax Policy Brief

Dear Listers,

Starting May 1, 2025, all Kenyan users of OpenAI tools like ChatGPT will be
charged a 16% VAT. If you have a KRA PIN, make sure to update your tax info
in your account for proper invoicing.

Want to understand what this means for Kenya’s digital future? Download
KICTANet’s Policy Brief on Digital Taxation in Kenya
<www.kictanet.or.ke/?mdocs-file=50434>.

Key recommendations for a fair, inclusive, and sustainable digital tax
system, including:

– Building trust through transparent policymaking
– Simplifying digital tax processes for better compliance
– Ensuring all voices are heard with a multistakeholder approach
– Balancing innovation and fiscal needs
– Promoting fairness in Kenya’s digital tax regime