Sendy, an on-demand courier service has alerted its customers that as from 1st January 2019, it’ll cost them a little bit more to send parcels than it did previously in its 5-year existence.
Before you go up in arms, the reason for this is to accommodate the introduction of VAT in the pricing of Sendy services.
“Starting January 1st 2020, all invoices to Clients on behalf of Sendy Partners will include VAT. This is a requisite change as we work to better serve businesses like you and our partners across the continent,” reads the notification to customers.
What this means for customers, is that they will now pay an additional 16% of the initial courier cost. For example, if sending a package cost 500 bob before, it will now cost 580 to send the same package to the same destination.
Speaking to Gadgets Africa, a Sendy spokesperson confirmed the “price hike” but offered solace to Sendy customers that they will be able to claim their VAT refund from the Kenya Revenue Authority (KRA).
“Sure it will increase by 16%, but you will be able to claim it,” they said.
Gadgets Africa Take
As much as the increase might be negligible to some, it’s a huge price to pay for anyone who uses Sendy regularly, especially on a personal basis.
Corporates might not feel the pinch as they will easily claim the VAT refunds as opposed to individual users, who would care less about making VAT claims.
Anyway, whether we like it or not, the bottom line is, we’ll have to dig deeper into our pockets to use Sendy.