Starting Tuesday, April 1, ride-hailing platform Bolt will begin applying a 16 percent Value Added Tax (VAT) on its drivers’ earnings, marking the end of a 15-month period in which the company absorbed the tax. The move comes as part of its compliance with tax regulations.
With this adjustment, Bolt drivers will now be responsible for handling their own VAT obligations. However, the company has assured its drivers that it remains committed to creating opportunities for them to maximize their earnings.
Following discussions with government agencies such as the National Transport and Safety Authority (NTSA), Bolt has confirmed that the VAT will now apply to its commission. Since 2023, the company had been covering the tax to ease the transition for its drivers, making it one of the few ride-hailing services that had delayed implementing the VAT requirement.
Under the VAT (Electronic, Internet, and Digital Marketplace Supply) Regulations, 2023, ride-hailing platforms are categorized as digital marketplaces. As a result, they are legally mandated to collect and remit VAT on the services they provide.
“Our priority remains compliance, fairness, and sustainability,” said Dimmy Kanyankole, General Manager for Bolt Kenya and Tanzania.
He further assured drivers that Bolt will continue supporting them through educational initiatives and awareness programs to help them adapt to the changes while optimizing their earnings.
Although Bolt has now opted to pass on the VAT responsibility to drivers, it clarified that passengers will not face additional charges due to the change. The company emphasized that regulations set by the National Assembly do not allow drivers to impose extra fees on riders.
With the new policy, drivers will receive their payments after Bolt deducts its commission and the applicable VAT.
Addressing concerns from riders about possible extra costs when discounts are applied, Bolt reiterated that passengers will not be charged beyond the agreed fare. Additionally, during promotions, drivers will continue receiving their full payments as usual.
