Zoom users face higher charges from August due to VAT
You will now pay more for using popular video conferencing platform Zoom starting August as the company adds VAT on its pricing for services.
Zoom now joins Facebook and YouTube that are already charging VAT on supplies to their customers in Kenya.
“Zoom Video Communication Inc will begin charging Kenyan VAT on or shortly after August 1, 2021, on its services supplied to customers in Kenya,” stated the firm in a notice to users.
In the last 18 months, Zoom has been one of the most widely used meeting platforms following disruption caused by Covid-19.
The platform has been widely adopted by schools including universities to support virtual learning.
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“Like many companies with a growing international presence, Zoom is routinely evaluating its indirect tax collection and remittance obligations,” added the company
“The application of these taxes to businesses with online activities is a complex and evolving area. Zoom continues to review such developments, as well as the nature and extent of its activities in different jurisdictions and based on such regular review, will start charging indirect taxes where applicable,” the message read in part.
The move is set to impact big organizations since they are the ones who usually pay for zoom services to accommodate workers in diverse locations for meetings running past the free 40 minutes’ limit.
While many users of Zoom use the free plan, large organizations and governmental agencies pay between Kes 15,000 and Kes 25,000 for virtual meeting bouquets.
