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From April 1st 2021, Facebook ad buys will be subjected to VAT of 16%. This applies to advertisers whose ‘Sold To’ country on their business or personal address is set to Kenya and who haven’t confirmed that they’re advertising for business purposes.

In the Ad Accounts Settings of Ads Manager, you can check the box to confirm whether or not you’re advertising for business purposes and responsible for self-assessing and paying VAT in accordance with the Tax Code of Kenya. If you confirm you’re advertising for business purposes, Facebook doesn’t add VAT to your purchase of Facebook ads.

VAT is added whenever you’re charged for your ads if you’re not purchasing Facebook ads for business purposes. Because 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 Facebook 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.

source https://www.facebook.com/business/help/187911129790766

Categories: Facebook Ads

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