As of October 9, 2020, Kenya requires non-resident entities like Twilio Inc. (“Twilio”) to collect Value Added Tax (VAT) for any Electronically Supplied Services (“ESS”) sold to all customers located in Kenya. This guide covers how Twilio charges VAT and what services are taxable.

Notice: Twilio services may be subject to tax in various countries, states and/or localities.  To see if Twilio collects taxes in your country, please see the Taxes section of our Support Help Center.

The following topics are discussed in this guide. Click a topic to skip directly to this information:

• Value Added Tax  (VAT) overview.
• When will Twilio start charging VAT in Kenya?
• How can I be tax exempt for VAT?
• How do I enter my VAT number?
• How is VAT determined?
• What rate is VAT charged in Kenya?
• Where can I see the VAT charged on my Invoice?

Value Added Tax (VAT) overview

Kenya Revenue Authority (KRA) passed legislation effective October 9, 2020, requiring non-resident entities selling digital services to collect and remit a 16% Value Added Tax  (VAT) on its sales to Kenyan private consumers (B2C) .

With effect from 1 July 2022, the above rules were extended to include B2B supplies.

Non-residents are required to apply VAT on both  Business to Customer (B2C) transactions and Business to Business (B2B) transactions.

When will Twilio start charging VAT in Kenya?

Twilio will begin collecting VAT on services sold to customers located in Kenya starting in February 2024.

VAT is assessed and applied to your account at the start of the month for the previous month’s usage. For example, you will be charged VAT for your February usage in March.

How can I be tax exempt for VAT?

Twilio Inc is required to impose VAT on both B2B and B2C customers.  In other words, there are no exemptions provided under the tax provisions for the type of services that Twilio Inc provides in Kenya. This includes but isn't limited to public school, university, charitable organizations, religious body, etc.

How do I enter my VAT number?

B2B customers can enter their VAT number in the “VAT Number” field on the Billing Preferences page in Console.

Unless your business details are provided, the tax invoice will not be fully compliant and you may not be able to deduct the VAT imposed.

How is VAT determined?

VAT is applicable based on the type of products or services that are purchased. We have determined that most of Twilio’s products & services are subject to VAT.

Please confirm your service address is up to date in the Twilio Console for accurate taxation in the correct jurisdiction. For help updating your service address, see How do I Update my Billing Settings.

What rate is VAT charged in Kenya?

Twilio's services will be subject to the 16% VAT rate as determined by the Kenya Revenue Authority (KRA)

Where can I see the VAT charged on my Invoice?

VAT can be found on your invoice in the Usage Summary section under “Taxes”. This line item represents the VAT charged.


Tax calculation is explained on the Tax Details page

For more details, see Reading your Twilio Invoice.