How is customs duty calculated in Kenya?

December 30, 2019 Off By idswater

How is customs duty calculated in Kenya?

How is car duty calculated in Kenya? Import Duty is 25% of the CRSP. Excise Duty is 20% of the CRSP + Import Duty. 16% of the CRSP + Import Duty + Excise Duty is VAT.

What taxes do you pay when importing?

The usual UK Import VAT rate is 20%. As these charges are added up after purchase, the total cost of ordering your items will start to increase and could leave you with unexpected fees on items you’ve bought online.

Are imports Vatable in Kenya?

VAT on imported services VAT is also applicable on imported services. This is also referred to as Reverse VAT. Imported services are services provided by non- resident persons who are not required to register for VAT in Kenya.

How is import tax calculated?

To calculate the VAT on your shipment, add up the goods value, freight costs, insurance, import duty and any additional costs. Then multiply the total by the destination country’s applicable VAT rate. The result is the amount of VAT you’ll need to pay customs for your shipment.

How much is import duty in Kenya?

Imports into Kenya are subject to a standard VAT rate of 16%, levied on the sum of the CIF value, duty, and other applicable taxes. An import declaration fee of 3.5% and railway development levy of 2%. Tariff rates can be estimated by visiting Kenya Revenue Authority .

How do I clear an imported car in Kenya?

To clear the vehicle through Kenya Customs, an importer will have to contract a licensed clearing agent to process their declaration in the Simba 2005 & Kentrade Systems. A listing of licensed clearing agents is available online here.

Who pays VAT in Kenya?

It is levied on the use of taxable products and services supplied or imported into Kenya. The tax is collected by registered persons at designated points in the supply chain and remitted to KRA. Only registered traders with an annual turnover of KShs. 5 million and above are required to charge VAT.

How much is custom fee in Kenya?

In general, Customs duty is levied at rates between 0% and 100%, with an average rate of 25%. Imports into Kenya are subject to a standard VAT rate of 16%, levied on the sum of the CIF value, duty, and other applicable taxes.

What is the difference between VAT and import duty?

VAT is charged on goods imported from outside the EU at the same rate as if you bought the goods in the UK. It is also worth remembering that there will be VAT to pay on any import duty. What is different is that VAT on imported goods is paid directly to HMRC, while domestic VAT is normally paid to a supplier of goods.