Meta (formerly Facebook) has announced that all Kenyans – both businesses and personal accounts – who use their advertisement services will be required to pay up 16% Value Added Tax (VAT). This is effective yesterday (November 1st 2022), and is thanks to new VAT laws and requirements for this market.
This affects everyone who runs ads on Facebook or on Instagram. Meaning you’ll be paying more as tax whenever you run an ad on the platforms.
Here’s the official statement from Meta (Facebook):
Due to updates to value-added tax (VAT) laws in Kenya, Meta is required to charge VAT on the sale of ads to advertisers, regardless of whether you’re buying ads for business or personal purposes. All advertisers with a business country of Kenya will be charged an additional 16% VAT on advertising services purchased beginning 1 November 2022.
If you’re registered for VAT and provide your VAT ID, your VAT ID will show up on your ads receipts. In the event that you’re entitled to recover VAT, this may help you recover any VAT you paid to the Kenyan tax authorities if you are a VAT registered business in Kenya.
How to add your VAT ID to Facebook for advertising:
- Go to Payment Settings
- Click “Open Payment Settings” and click “Edit” under “Business Info”
- Scroll down to the field “Tax ID Number”
- Add your Kenya PIN
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