The Tax Appeals Tribunal of Kenya delivered its judgement in the case of LG electronics Africa Logistics FZE Kenya branch (“branch”) versus The Commissioner of Domestic Taxes Kenya Revenue Authority on 31 March 2020, in determination of whether the marketing and advertising services provided by the branch to the head office qualified as an export of a service in accordance with the provisions of the Kenyan VAT Act. The Tribunal held that a consumer of exported services is to be determined by reference to the business agreement.
This ruling is useful in defining use and consumption when determining what qualifies as an export of services as required under Regulation 12 of the Uganda VAT Act. It will therefore set a good precedent for consideration by the Ugandan courts in interpretation of similar cases.
The below Tax Alert that explains the details of the case and what it means for Ugandan taxpayers in similar business arrangements.
Manager, PwC Uganda
Tel: +256 (0) 312 354 400