Kenya VAT is a 16% tax applied to services like Marketplace and Recruiter Fees for clients on Upwork. Providing a VAT ID is optional and doesn’t exempt you unless you submit a valid exemption certificate. Tax charges adjust automatically if your tax residence changes.
What's Kenya VAT, and why does Upwork collect it?
Value-added tax, or VAT, is a tax on goods or services, including our services to you, and Kenya requires Upwork to collect it and send it to the government of Kenya.
We're required to comply with the tax laws of countries where we do business to continue providing services there.
What services does Kenya VAT apply to on Upwork?
Examples of services that VAT applies to on Upwork include:
- Marketplace Fee
- Contract Initiation Fee
- Conversion Fee
- Recruiter Fee
- Featured Job Post purchases
Since we charge tax when your government requires it, this tax may change or apply to additional services in the future.
What's the VAT rate in Kenya?
It's 16% of the cost of the service being taxed. Example: On $100 USD in Client Marketplace Fees, you'll pay $16 in tax, for a total of $116.
You’ll see the estimated amount of tax when you check out and on your invoices and transaction history.
Do I have to provide a Kenya VAT ID, and what happens if I do?
You're not required to provide a VAT ID to Upwork, and providing a valid VAT ID does not exempt you from paying the tax.
If you want to provide your VAT ID, we'll display it on your invoices. You can enter it in your account’s Tax information.
What's the Kenya VAT ID format?
Your Kenya VAT ID number is a unique ID that you may request from your government by registering for VAT in Kenya—not the same as your tax ID. It has 11 alphanumeric characters—like this, for example: P999999999A.
To learn more, visit the Kenya tax authority website.
Does Kenya offer any exemptions to VAT?
Kenya does offer tax exemption if you have a valid tax exemption certificate. Just providing your VAT ID does not provide you with tax exemption — you must have the exemption certificate.
Please contact customer service to provide a tax exemption certificate for our review.
What happens to my Kenya VAT if I change locations?
If you change locations and update your tax residence in your Tax information, we'll automatically adjust your VAT to correspond with the rates in your new country of residence or stop collecting if there is no VAT, or a similar tax, in your new country.
Disclaimer:
This article is for general information only and should not be considered tax advice. It may not be updated in real time and may not reflect recent changes. We strongly encourage you to consult your country’s tax authority or your tax advisor with questions related to your specific situation.
Frequently Asked Questions
Kenya’s VAT applies to services we provide to both freelancers and clients if they reside, have a permanent address, or are established in Kenya.
We are still required to collect VAT even if you are only residing in a country temporarily. If you move to another country, you can update your tax residence in your Tax Information. We will automatically adjust your VAT to correspond with the rates in your new country of residence or stop collecting if there is no VAT, or a similar tax, in your new country.
If you are exempt from VAT, you will need to provide your valid tax exemption certificate. Once we have received your certificate, we will no longer charge you for VAT.
Note that providing your VAT ID does not provide you with tax exemption, you must provide a valid tax exemption certificate.
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