• Electronic cigarettes: 8542
• The Liquids used with electronic cigarettes: 2404

• Heading 88.06

This is a tariff classification decision by the commissioner of customs. It is a written communication from the commissioner to the taxpayer/importer specifying a Harmonised Systems Code applicable for specified goods.

This is a ruling issued under section 248 (A) of the East African Community Customs Management Act.

The advance ruling is valid for a period of twelve months from the date of issuance.

This is a contestation by any person on any decision of the commissioner or his/her representative undertaken in line with the provisions of East African Community Customs Management Act.

Section 229

Valid appeal shall be lodged in writing within thirty days of the date of the decision or omission lodge an application for review of that decision or omission and shall clearly state the grounds of appeal.

This appeal shall satisfy requirements of section 229 (1), (2), (3), (4), (5) and (6)

The person shall lodge an appeal at the Tax Appeals Tribunal as prescribed under section 230.

The appeal shall be lodged within forty-five days after being served with the decision, and shall serve a copy of the appeal on the Commissioner.

The non-resident supplier of digital services will account for VAT on all transactions.

Yes. The registered taxpayer in Kenya will claim the input tax so charged in line with section 17 of the VAT Act provided that the non-resident supplier has issued an invoice or receipt showing the value and the tax of the supply so charged.

No transitional period has been provided under the law in order for one to comply with the Finance Act 2022 amendments

WHT VAT is only at 2%, which is quite modest and in most cases would not put the taxpayer in a perpetual credit cycle.

Yes. The non-residents are exempted from the provisions within the Electronic Tax Invoice Regulations, 2020 as part of the simplified registration, filing and payment framework.

The African Continental Free Trade Area, (AfCFTA) was established in 2018 as one of the flagship projects of the African Union Agenda 2063 with the main mandate to create a single continental market of 55 Member States of the African Union.

Trade under the AfCFTA agreement entered into force on 30th May 2019, 30 days after 22 countries had deposited their instruments of ratification. On 1st January 2021, Africa officially started trading under the African Continental Free Trade Area (AfCFTA) Agreement. The agreement covers trade in goods, trade in services, investment, intellectual property rights and competition policy as well as digital trade, mainstreaming of women and youth and an adjustment fund.

The Agreement requires the state parties to:

• progressively eliminate tariffs and non-tariff barriers to trade in goods;
• progressively liberalize trade in services;
• cooperate on investment, intellectual property rights and competition policy;
• cooperate on all trade-related areas;
• cooperate on customs matters and the implementation of trade facilitation measures;
• establish a mechanism for the settlement of disputes concerning their rights and obligations; and
• Establish and maintain an institutional framework for the implementation and administration of the AfCFTA.

The following are the general and specific objectives of the AfCFTA 

The general objective of the AfCFTA agreement aims at integrating trade across African continent, which has long been limited by outdated border and transport infrastructure, and differing regulations across countries. Intra-African exports constitute 16.6% of total exports in 2017, compared with 68.1% in Europe, 59.4% in Asia, 55% in America according to UNCTAD. 

The specific objectives of AfCFTA are:

• To create a single market, deepening the economic integration of the continent.
• To establish a liberalized market through multiple rounds of negotiations.
• Aid the movement of capital and people, facilitating investment
• Move towards the establishment of a future continental customs union
• Achieve sustainable and inclusive socioeconomic development, gender equality and structural transformations within member states.
• Enhance competitiveness of member states within Africa and in the global market
• Encourage industrial development through diversification and regional value chain development, agricultural development and food security
• Resolve challenges of multiple and overlapping memberships.

• The AfCFTA will provide a global market for free trade of goods  for  SMEs and create new industries and opportunities for investment, placing the continent in a more favourable position globally.
• The AfCFTA will reduce market fragmentation and create a single market allowing African countries to be in a better position to negotiate prices, which in turn will better position the continent as a viable economic partner on the world stage.
• Both businesses and governments will have the ability to tap into various talent from different parts of the continent upon the AfCFTA
• Individuals will have a greater opportunity to seek employment and education opportunities in other parts of the continent.
• The agreement will enhance the competitiveness of the economies of State Parties in the global market, resolve the challenges of multiple and overlapping memberships and expedite the regional and continental integration processes.
• Increase employment and investment opportunities
• Increase local content and development of regional value chains
• Improve infrastructure and connectivity
• Collaboration in the development of joint infrastructure to facilitate intra-African business, especially MSMEs, women and youth
• Address the problem of Multiple Membership