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Kuehne+Nagel Limited v Commissioner of Domestic Taxes (Appeal 337 of 2020) [2021] KETAT 150 (KLR) (21 May 2021) (Judgment)

[2021] KETAT 150 (KLR) Tax Appeals Tribunal
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Court
Tax Appeals Tribunal
Case number
150
Citation
[2021] KETAT 150 (KLR)
Decided
21 May 2021
AI Summary Beta Machine-generated — may contain errors. Not legal advice.
TypeTax AppealPostureAppeal from a VAT demandCoramTribunal
Holding

The Tribunal held that the transportation of uncut flowers is not a supply of services in respect of unprocessed agricultural and agro-forest produce zero-rated for VAT purposes.

Facts

The Appellant, Kuehne+Nagel Limited, transports cut flowers from local farms to the Jomo Kenyatta International Airport. The Respondent, Commissioner of Domestic Taxes, demanded VAT on this transportation.

Issues

  1. Whether the transportation of uncut flowers is a supply of services in respect of unprocessed agricultural and agro-forest produce zero-rated for VAT purposes.
  2. Whether the transportation of the flowers ended outside Kenya, making the services outside Kenya and therefore VAT zero-rated.

Reasoning

The Tribunal determined that the flowers were not processed and that the transportation ended within Kenya, thus the services were not outside Kenya and therefore not zero-rated.

Outcome

Affirmed the Respondent's VAT demand

Authorities cited

Legislation (2)
  • VAT Act, Cap 476
  • VAT Regulations 1994
Experimental AI summary generated by a language model, not a lawyer. It may contain errors or omissions and must not be relied on for legal decisions — the full judgment below is the authoritative source.
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