In a pivotal clash between digital platforms and tax authorities, the High Court overturned the Tax Appeals Tribunal's decision, deeming Sendy, a tech marketplace connecting transporters and customers, and the principal supplier liable for VAT on full delivery fees, not just commissions. Drawing from EU jurisprudence like the Fenix International case, the court prioritized "economic substance over form," emphasizing Sendy's control over pricing, dispatch, and payments, shattering the "asset-light" defence.

This seismic shift hikes tax burdens for Kenyan gig economy players, erodes reliance on private tax rulings, and redefines VAT in the digital age.

Curious how this impacts platforms like Uber or Airbnb analogs?

Dive into the full analysis for key arguments, court findings, and forward implications!