Kenyans running Facebook Ads will be required to pay up 16% Value Added Tax (VAT). This is after Meta, formally Facebook, put out an official statement saying that it is required to charge a 16% VAT on the sale of ads to advertisers due to updates to value-added tax (VAT) laws in Kenya.
The added tax took effect yesterday (November 1st, 2022), and is thanks to updated VAT laws and requirements in Kenya. Anyone running ads on Facebook or Instagram will have to pay more whenever they run ads on the two platforms.
’From November 2022, Meta ads in Kenya are subject to a value-added tax (VAT) at the applicable local tax rate. This applies to all advertisers whose “Sold to” country on their business or personal address is set to Kenya.”
Meta
Anyone running ads on the platform will be able to add their VAT ID by heading over to the payment settings.
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.
Meta
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 Kenyan PIN
According to Meta, VAT will be added whenever you’re charged for your ads, regardless of whether you’re purchasing Meta ads for business or personal purposes.
“As VAT is added on top of charges, you won’t reach your billing threshold faster, but you may be charged more than your billing threshold amount. If you pay for Meta ads with a manual payment method, VAT is accounted for and applied at the applicable local rate when your ad account is funded to determine the total balance available.” – Meta
