How VAT Is Applied to Hosting Invoices in Kenya

Hosting services in Kenya are subject to VAT, which is shown separately on your invoice and calculated on the price after any discount.

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Web hosting is a taxable service in Kenya, so VAT is added to invoices and shown separately from the base price. Understanding how it appears helps with your own accounting and KRA records.

How VAT Appears on the Invoice

Your invoice separates the cost into clear lines:

  • Subtotal: the plan or service price in KES before tax.
  • VAT: the tax amount, calculated on the subtotal at the prevailing Kenyan rate.
  • Total: the subtotal plus VAT, which is the amount you pay.

VAT and Discounts

When a promo code or discount applies, VAT is calculated on the discounted subtotal, not the original price:

Plan price:     KES 2,000
Discount:      -KES 400
Subtotal:       KES 1,600
VAT (16%):      KES 256
Total:          KES 1,856

The 16 percent figure above is illustrative; your invoice uses the rate in effect at the time of billing.

Claiming VAT and Records

  • Add your KRA PIN and registered business name to your billing profile so they print on the invoice.
  • Download invoice and receipt PDFs from Billing > My Invoices for your tax records.
  • VAT-registered businesses can use these documents toward input VAT where eligible, subject to KRA rules.

If you need a corrected tax invoice, update your billing details first, then request a reissue via the /contact page. Always pay the full total, including VAT, so the payment matches the invoice exactly.

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