Ericsson (K) Limited vs Commissioner of Domestic Taxes 2016
Exported Services- Destination Principle
The Tribunal held that the marketing support services the Appellant provided were consumed outside Kenya by the two related non-resident entities, hence constituting exported services which were zero-rated for VAT purposes. The Tribunal relied on the destination principle under the OECD guidelines which provides that the jurisdiction where a customer is located has the taxing rights over internationally traded services.
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