How VAT works for freelancers in Kenya

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Disclaimer:

This article is for general information only and should not be considered tax advice. It may not be updated in real time and may not reflect recent changes. We strongly encourage you to consult your country’s tax authority or your tax advisor with questions related to your specific situation.

What's Kenya VAT, and why does Upwork collect it?

Value-added tax, or VAT, is a tax on goods or services, including our services to you, and Kenya requires Upwork to collect it and send it to the government of Kenya.

We're required to comply with the tax laws of countries where we do business to operate there.

What does VAT apply to for freelancers in Kenya?

Examples of services that VAT applies to:

Membership fees
Connects purchases
Freelancer service fees

Since we charge tax when your government requires it, this tax may change or apply to additional services in the future.

What's the VAT rate in Kenya?

It's 16% of the cost of the taxed service.

Example: On $100 USD in Freelancer Service Fees, you'll pay $16 in tax, for a total of $116.

You’ll see the estimated amount of tax when you check out and the final charge on your invoices and in your transactions.

Do I have to provide a Kenya VAT ID, and what happens if I do?

You're not required to provide a VAT ID to Upwork, and providing a valid VAT ID does not exempt you from paying the tax. However, if you want to provide it, we'll display it on your invoices. You can enter it in your account’s tax information.

Does Kenya offer any exemptions to VAT?

Kenya does offer tax exemption if you have a valid tax exemption certificate. Just providing your VAT ID does not provide you with tax exemption — you must have the exemption certificate.

Please contact customer service to provide a tax exemption certificate for our review.

What happens to my Kenya VAT if I change locations?

If you change locations and update your tax residence in your account's Tax information, we'll automatically adjust your VAT to correspond with the rates in your new country of residence or stop collecting if there's no VAT, or a similar tax, in your new country.

Who does Upwork collect Kenya VAT from?

Kenya’s VAT applies to services we provide to both freelancers and clients if they reside, have a permanent address, or are established in Kenya.

What if I’m only residing in Kenya temporarily?

As long as your tax residence is set to Kenya, we’re required to collect them. If you move, update your tax information — we’ll adjust accordingly.

I’m exempt from paying VAT in Kenya. Are you still going to charge me VAT?

If you're exempt from VAT, you'll need to provide your valid tax exemption certificate. Once we've received your certificate, we'll no longer charge you for VAT.

Note that providing your VAT ID does not provide you with tax exemption — you must provide a valid tax exemption certificate.

To learn more, visit the Kenya tax authority website.