Prime Bank Limited v Commissioner of Domestic Taxes (Appeal 073 of 2022) [2024] KETAT 95 (KLR) (2 February 2024) (Judgment)
- Court
- Tax Appeals Tribunal
- Case number
- 95
- Citation
- [2024] KETAT 95 (KLR)
- Decided
- 2 February 2024
The Tribunal held that interchange fees and merchant fees are financial services exempted from VAT under Paragraph 1 of Part II of the VAT Act 2013.
Facts
Prime Bank Limited filed tax declarations and VTDP applications in 2021 for tax periods 2017-2019. The Commissioner of Domestic Taxes issued a notice of assessment and subsequent assessment orders for additional VAT on merchant fees and interchange fees. The Appellant objected to these assessments.
Issues
- Whether the objection decision dated 9th December 2022 is proper in law.
Reasoning
The Tribunal considered the exemptions in Paragraph 1 of Part II of the VAT Act 2013 and cited the High Court's decision in Commissioner of Domestic Taxes v Bank of Africa Limited (Civil Appeal E127 of 2020) [2023] KEHC 1036 (KLR) for the interpretation of Paragraph 1(b).
Outcome
The Tribunal upheld the Appellant's appeal and set aside the objection decision.
Orders
- Set aside the objection decision dated 9th December 2022
Authorities cited
Legislation (2)
- VAT Act 2013
- KRA Act
Cases cited (1)
- Commissioner of Domestic Taxes v Bank of Africa Limited (Civil Appeal E127 of 2020) [2023] KEHC 1036 (KLR)
Loading judgment…