Tax and VAT on FelbaStore
Felbatech Solutions Limited, which runs FelbaStore, is not registered for VAT. FelbaStore does not charge VAT on its commission or fees, and adds no VAT at checkout. Prices are set by vendors; VAT on goods is the responsibility of each vendor that is VAT-registered.
For everyone
Felbatech Solutions Limited, the company that runs FelbaStore, is not registered for VAT.
In Kenya, VAT registration becomes mandatory only once a business's taxable turnover reaches KES 5 million in 12 months. Only a VAT-registered business may charge VAT or issue a VAT invoice.
Legal basis: Value Added Tax Act, 2013, section 34
FelbaStore adds no VAT at checkout. You pay the price the vendor lists, plus delivery where it applies, and your receipt says "Not VAT registered".
Prices shown on FelbaStore are set by vendors. VAT on goods and services is each vendor's own responsibility if that vendor is VAT-registered: a registered vendor includes VAT in the price it lists and accounts for it to KRA itself.
For vendors
FelbaStore does not charge VAT on its commission or fees, because it is not VAT-registered.
Legal basis: Value Added Tax Act, 2013, section 34
Vendor payouts are the order value minus FelbaStore's commission and fees. No income tax, withholding tax or VAT is deducted from payouts at present.
The Tax Laws (Amendment) Act, 2024 requires operators of digital marketplaces to withhold tax on certain payments to sellers. FelbaStore is confirming with its tax adviser which sales this covers and will tell vendors before any withholding starts. Withholding tax, if it applies, is an advance on the vendor's income tax and can be claimed against it.
Legal basis: Income Tax Act (Cap. 470), as amended by the Tax Laws (Amendment) Act, 2024
Each vendor remains responsible for its own taxes (for example Turnover Tax or income tax, and VAT once registered). This is information about how FelbaStore works, not tax advice.
Questions
Why is there no VAT on my order?
Felbatech Solutions Limited, which runs FelbaStore, is not registered for VAT, so no VAT is added to your order. You pay the price the vendor lists, plus delivery where it applies.
In Kenya, VAT registration becomes mandatory only once a business's taxable turnover reaches KES 5 million in 12 months (Value Added Tax Act, 2013, section 34), and only a VAT-registered business may charge VAT. FelbaStore is not VAT-registered, so checkout adds no VAT and your receipt says "Not VAT registered".
Prices shown on FelbaStore are set by vendors. VAT on goods is each vendor's own responsibility if that vendor is VAT-registered: a registered vendor includes VAT in the price it lists and accounts for it to KRA itself.
More detail: felbastore.com/help/tax.
Does FelbaStore deduct tax from my payouts? What about VAT?
Today we deduct only FelbaStore's commission and fees from your payouts, no tax. Felbatech Solutions Limited, which runs FelbaStore, is not VAT-registered, so FelbaStore does not charge VAT on its commission or fees. You remain responsible for your own taxes.
What is deducted now: your payout is the order value minus FelbaStore's commission and fees, as shown in your earnings. No income tax, withholding tax or VAT is deducted from payouts at the moment.
VAT: registration becomes mandatory only once a business's taxable turnover reaches KES 5 million in 12 months (Value Added Tax Act, 2013, section 34), and only a VAT-registered business may charge VAT. FelbaStore is not VAT-registered, so it does not charge VAT on its commission or fees. Your prices are yours: if you are VAT-registered, VAT on your goods is your responsibility, so include it in the prices you list and account for it to KRA.
Withholding tax on platform payments: the Tax Laws (Amendment) Act, 2024 amended the Income Tax Act so that owners and operators of digital marketplaces withhold tax on certain payments to sellers (reported at 5% for Kenyan residents). We are confirming with our tax adviser exactly which of your sales this covers. If it applies, we will tell you before it starts, show the amount on every payout, pay it to KRA under your KRA PIN, and you will be able to claim it against your income tax, because it is an advance on your tax, not an extra tax.
Your own taxes: income from your store is your business income. Depending on your business, that may mean Turnover Tax or income tax, and VAT once you cross the threshold. Keep your KRA PIN up to date and speak to your accountant or KRA about your situation. This article explains how FelbaStore works; it is not tax advice.
Last reviewed 2026-10-29. This page explains how FelbaStore works; it is not tax advice.
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