As a business owner I make it my business to check my accounts and billing records from time to time. Si kukula pesa tu. I advice you to do the same. You don’t have to be an accountant or anything. Just keep tabs on your money.

So this month I noticed my Instagram ad billing had ‘tax’. Like wtfh?! So here’s an article to let you know if you don’t already that your Facebook or Instagram ad is higher than usual because you’re paying tax. Kenya VAT for that matter.

To check this simply just open your Instagram business account (if you promote using Instagram)

Click on settings >> Business>>promotion payments>>Transaction history

Once you tap on one of the payments you’ll get an overview or summary of the amount billed.

About Kenya Value Added Tax (VAT)

“Beginning 1 April 2021, Facebook & Instagram ads in Kenya are subject to a value added tax (VAT) at the applicable local tax rate. 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.” Facebook business

For a Vat registered company this would mean you’re paying VAT twice. If not bahati yako meehn. Cause you have an option out of it. All you need to do is confirm you’re advertising for business purposes.

If you confirm this, Facebook doesn’t add VAT to your purchase of Facebook & Instagram ads.

Here’s a step by step guide on how to stop paying more for Facebook ads:

On a computer.

1. Open Facebook ads manager
2. Click on settings
3.Click on business info
4. Check/tick the box written I am advertising for business purposes.

I hope this has been helpful. Keep eyes on your paper always and stay safe.

Disclaimer: The information provided in this blog is for general purposes only and should not be construed as personalized financial advice. While I am an expert and experienced accountant, I cannot guarantee that this information is of a timely nature or applicable to individual circumstances. If you have a question about taxes, we suggest that you contact your tax advisors or local tax authorities.