Multi-choice African Holdings, the providers of DSTV and Showmax, have been slapped with a Sh681,513,813 input tax owed to the Kenya Revenue Authority (KRA) for the period January 1, 2021, to June 30, 2023.
The tax tribunal, led by Justices Christine Muga, Elishah Njeru, and Ololchike Spencer, said KRA was justified in issuing an assessment tax and disallowing the input tax claimed by Multi-choice.
The tribunal noted that KRA declined to allow the deduction of input tax because Multi-choice was a supplier in the digital marketplace under business-to-consumer transactions.
The judges said that the services that Multi-choice offers were subject to Value Added Tax (VAT) pursuant to the provisions of Section 8 of the Value Added Tax Act (VATA). "The upshot of the foregoing is that the Tribunal finds and holds that the Appeal lacks merit and the appeal be and is hereby dismissed.
