Tanzania VAT
Provinces
Goods
Provinces
Goods
Digital services
About
Goods
About
Goods
About
Digital services
About
Digital services
Goods
Digital services
Goods
Digital services
Vat standard rate
The standard VAT rate in Tanzania is 18% and applies to goods and imports.Vat zero rate
VAT zero rate applies to export transactions.In particular, zero-rated operations include:
- Export of services;
- Export of goods;
- Transportation services related to transit through the country.
VAT standard rate
The VAT standard rate in the Tanzania is 18%.
VAT Standard rate
18%
VAT Reduced rate
-
Thresholds
TZS200 million
Threshold
Companies with annual turnover exceeding TZS200 million (approximately USD 81,600) in the twelve months must register as VAT payers. The application must be submitted within 30 days of reaching the turnover threshold.Deductible VAT
If the amount of input tax exceeds the amount of output tax and this surplus has been carried forward for more than six months, the taxable company may request a refund. The amount of the refund must be equal to or greater than TZS100,000.Registration procedure
An application for VAT registration must be submitted 30 days after the threshold is exceeded. The application can be submitted both in paper form and online. The period for reviewing an application for registration is 15 days.Tax representative
Non-resident companies that do not have a permanent establishment in Tanzania are required to appoint a local tax representative to act on behalf of the company and fulfill all necessary obligations.Keeping records
The retention period for VAT-related documents, including invoices, books, tax returns and other records, should be kept for 5 years after the end of the tax period or longer if required by the Tanzanian tax authorities.Filling VAT return and payment date
VAT returns must be filed and paid on a monthly basis. Filing and payments must be made by the 20th day of the month following the tax month, unless that day is a public holiday or a weekend, in which case they must be filed on the next business day.Threshold
Non-resident digital service providers whose annual revenue exceeds TZS 200 million (approximately USD 81,600) must register as VAT payers. The application must be submitted within 30 days of reaching the turnover threshold. This condition does not apply to professional service providers.Deductible VAT
Non-resident companies that provide digital services in Tanzania cannot receive VAT refunds.Pieces of evidence
In order to determine that the place of supply of electronic services is Tanzania, it is necessary to provide services to any person residing or conducting business in Tanzania, and at the time of supply of services, their Internet address is located in the territory of the country.E-services list
The list of digital services includes the following:- Online platforms
- Databases
- Graphics, written content, and data
- Hosting services
- Digital learning resources
- Downloadable digital content
- Audio, video, and interactive entertainment, including gaming experiences
- Public dissemination of political, cultural, artistic, sports, scientific, and miscellaneous content, including televised broadcasts
Registration procedure
The application for VAT registration must be submitted within 30 days after the threshold is exceeded. The application for non-resident digital service providers must be submitted online in the appropriate form. The application is processed within 15 days.Tax representative
Non-resident companies providing digital services in Tanzania are required to appoint a local tax representative who, in turn, must have a valid tax number, a valid representative’s declaration, and the right to conduct VAT business with non-residents of the country.Keeping records
The retention period for VAT-related documents, including invoices, books, tax returns, and other records, must be kept for 5 years after the end of the tax period or longer if required by the Tanzanian tax authorities. Reporting can also be done electronically, but this requires a primary data server that stores all the necessary information about the taxpayer and its business activities.Filling VAT return and payment date
The period for filing and paying VAT in Tanzania is one month. Returns and payments are due by the 20th day of the month following the reporting period, unless that day is a public holiday or a weekend, in which case the declarations must be filed on the next business day.
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