Starting 1st February 2023 google will apply the 16% Value added tax (VAT) on all taxable goods and services in Kenya, on the platform.
This comes after the Government introduced VAT (Digital Marketplace Supply) (Amendment) Regulation 2022.
The tech-firm announced it will start collecting taxes on behalf of the National Government thus increasing cost products and services costs.
The tech firm has asked users to upload their pins on their Google’s payments profile.
“Please update your Kenya PIN number in your Google payments profile. Once updated, you should start seeing the PIN number on your Google invoices,” it added.
The American-based company will also collect tax information in compliance with local laws.
Those who fail to update their profiles will encounter problems with invoice validity, it said.
“Failure to provide your PIN number by February 1, 2023 may cause issues with invoice validity and possible implications for recovery of VAT costs, if you are entitled to reclaim,” it said
They include Netflix, Spotify as well as e-books and video-conferencing companies.