KRA wins Kshs 105.6 million case against Mars Logistics Limited
The High Court sitting in Nairobi has dismissed an appeal by Mars Logistics Limited contesting a charge of Value Added Tax (VAT) on transportation services among other claims. Mars Logistics Limited had contested Tax Appeal Tribunal’s (TAT) decision that transportation of goods in transit attracts VAT at the rate of 16%. The TAT had also held that transportation services that end outside Kenya are not exported services and thus taxable. The First Schedule to the VAT Act, 2013 exempts VAT from services offered in relation to goods in transit. In its decision of 27th February 2018, TAT had ruled in favour of KRA, that Mars Logistics Limited’s sole business offered transport services for transit goods that were taxable under the VAT Act. 2013. The tribunal had further held that the company was not entitled to claim exempt status for the sale of motor bikes because the motor bikes were not exempt Decision of the High Court ...
