Thursday, September 19, 2013

Latest Kenya VAT Update from Albatros Travel East Africa

The new VAT Act became law in Kenya on 02nd September 2013. We were given very little warning about the changes in the VAT Act 2013 and through KATO (Kenya Association of Tour Operators) we tried to put up a fight to prevent this happening.

 Unfortunately , The VAT Act 2013 has already taken effect having been gazetted into law on 2nd September, 2013. The way this Act is structured, no individual can amend it. Any changes to the Act can only be done by Parliament after a motion to that effect has been tabled, debated and approved. This will take some time and during that time the law has to be observed and adhered to.

 As of today 18th September, we will honour all confirmed bookings for 2013, but any new bookings or existing bookings confirmed for 2014 will need to have VAT added onto the various services. The main impact is going to be on transport and conservancy fees. Most properties already included the VAT but if the booking is on a game package there will be an increase in the rates as the transport element is subject to VAT. The KWS Park Fees are, at the moment, not subject to VAT, but Conservancy fees are. Aviation is also currently exempt. 

We will need to re-cost all 2014 bookings already confirmed and we will need to re-cost the 2014 pricelists that we sent. We are also receiving renewed contract rates from our suppliers due to the VAT on their Game Package rates as well as the Conservancy rates.

We will work through these costs and we will then have more of an idea on the extent of the cost increase as we try and work out what aspects of a safari VAT will affect. Naturally transport and park fees are currently the areas most affected.

Should you have any questions, please contact Sasha Skeel-Taylor in the Albatros Kenya office.

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