Commissioner of Domestic Taxes v Fortune Container Depot (Tax Appeal E063 of 2020) [2021] KEHC 249 (KLR) (Commercial and Tax) (19 November 2021) (Judgment)
- Court
- High Court of Kenya
- Case number
- 249
- Citation
- [2021] KEHC 249 (KLR)
- Decided
- 19 November 2021
The Tribunal held that the services rendered by the Respondent are exported services within the meaning of section 2(1) of the VAT Act, 2013 and are therefore zero rated under section 7 as read with the Second Schedule, Part A of the VAT Act, 2013.
Facts
The Commissioner of Domestic Taxes issued an audit notice on the Respondent, Fortune Container Depot, for the period between July 2015 and June 2018. The Commissioner adjusted the Respondent's VAT liability and raised additional assessments. The Respondent appealed, and the Tribunal allowed the appeal, setting aside the Commissioner's assessments.
Issues
- Whether the services provided by the Respondent are zero rated for VAT on the ground that they are exported services.
Reasoning
The Tribunal found that the services were exported services as the containers were in Kenya and the consignees were the consumers of the services provided by the Respondent.
Outcome
The Commissioner's appeal was dismissed.
Authorities cited
Legislation (1)
- VAT Act, 2013
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