Skip to main content
Validating tax IDs against this authority?Check any VAT or GST number with LookupTax

Tanzania VAT guidelines

FACTSHEET
Country codeTZ
Tax nameValue Added Tax (VAT)
Tax AuthorityTanzania Revenue Authority (TRA)

Overview​

Tanzania levies Value Added Tax under the Value Added Tax Act, CAP 148, administered by the Tanzania Revenue Authority (TRA). This guide covers Mainland Tanzania; Zanzibar operates its own VAT regime (standard rate 15%, 18% on banking, postal, telecommunications, insurance and digital services) administered separately by the Zanzibar Revenue Authority (ZRA) — renamed from the Zanzibar Revenue Board by the Zanzibar Revenue Authority Act No. 11 of 2022, effective 13 January 2023. [1]

The standard VAT rate is 18%. [1]

The most recent major amendment is the Finance Act, 2026 (Act No. 2 of 2026), assented to by the President on 30 June 2026, published as a Special Gazette (No. 8 Vol. 107) and in force from 1 July 2026. Among other things, it amends the VAT Act's withholding-VAT mechanics (sections 5 and 71), makes online marketplaces the deemed supplier of electronic services sold to unregistered persons (section 51), and adds new import exemptions to the Second Schedule. [2]

TIN and VAT registration​

  • Every taxpayer first obtains a Taxpayer Identification Number (TIN) from the TRA. A person who becomes liable to tax by reason of carrying on a business, investment or employment must apply for a TIN within 15 days of commencing that activity. [1] [2]
  • TIN applications are made online through the TRA's Taxpayer Portal, supplying identity documents, business-registration papers and a description of business premises.
  • Once the VAT registration threshold is reached, a person must apply to the Commissioner General for VAT registration within 30 days; an intending trader may apply at any time before the threshold is reached. Required documents typically include the VAT application form, certificate of incorporation and business licence, memorandum and articles of association, lease agreement, TIN certificate, revenue projections and proof of identity, and a TRA officer may interview the applicant and inspect the business premises before registration is granted. [3]

Registration threshold​

Registration for VAT is mandatory once a person's taxable turnover:

  • exceeds TZS 200 million in a period of twelve months and above, or
  • is equal to or greater than TZS 100 million in a period of six months ending at the end of the previous month. [1]

Source snapshot — TRA: VAT registration mandatory above TZS 200 million (12 months) or TZS 100 million (6 months) Source snapshot captured 2026-07-20 — original

The Commissioner also has discretion to register, as an intending trader, an investor whose project has not yet commenced production. [2]

Rates​

RateApplies to
18% (standard)Most taxable supplies of goods and services in Mainland Tanzania [1]
16% (reduced)Specified business-to-consumer purchases paid through a bank or an approved electronic payment system, since 1 September 2025 [1]
0% (zero-rated)Exports of goods and certain services — zero-rating is conferred by the body of the Act (s.55 goods, s.61A services, s.54 immovable property, ss.55A/61B Zanzibar-bound supplies and electricity), not by the Schedule [3]
ExemptSchedule Part I (supplies and imports exempt) — agricultural products, education, healthcare, insurance and water supply; Part II (imports exempt) covers import-specific items (e.g., from 1 July 2026, LPG smart meters of HS Code 9028.10.00 imported by a licensed LPG distributor, and electric-vehicle charging stations of HS Code 8504.40.00 imported by a licensed EV charging service provider) [1] [2]

Digital marketplaces and VAT withholding — Finance Act 2026​

The Finance Act, 2026 (Act No. 2 of 2026, certified 30 June 2026, in force from 1 July 2026) makes three changes to the VAT Act CAP 148: [1]

  • Marketplace deemed supplier (section 51). Where an electronic service is supplied to an unregistered person in Mainland Tanzania by a digital intermediary — through an online intermediation service or any other digital marketplace — the operator of that intermediation service or marketplace is, for VAT purposes, deemed to be the supplier of the service and must account for the tax.

Source snapshot — Finance Act 2026 s.94 amends VAT Act s.51 — marketplace operators deemed the supplier Source snapshot captured 2026-07-20 — original "Digital intermediary" is defined as an electronic interface, including a website, internet portal, application, online store or digital marketplace, that lets recipients and persons offering services through the interface make contact resulting in a sale. The statutory list of "electronic services" is also widened to add "any other service of a similar nature delivered through internet or a telecommunications network."

  • Withholding VAT rate split (section 5). The withholding-VAT rate is now 15% for a taxable person supplying goods and 12% for a taxable person supplying services; where a single supply has both goods and services elements, the taxable value subject to withholding is apportioned 3:2 between goods and services.
  • Monthly withholding statement (section 71). A withholding agent must pay any VAT withheld to the Commissioner within ten days after the end of each tax period, and must separately file a monthly withholding VAT statement with the Commissioner within ten days of the month following the tax period to which the VAT relates.

The Act also adds two new exemptions to Part II of the VAT Act's Second Schedule, effective 1 July 2026: imports of LPG smart meters (HS Code 9028.10.00) by a licensed distributor of liquefied petroleum gas, and imports of electric vehicle charging stations (HS Code 8504.40.00) by a licensed electric vehicle charging service provider. [1]

Invoice requirements​

Tanzania is unusual in that the device, not just the document, is prescribed by statute. Section 86(1) of the VAT Act requires a registered person making a taxable supply to issue a serially numbered, true and correct tax invoice generated by an electronic fiscal device — no later than the day on which VAT becomes payable on the supply under section 15. A manually produced invoice does not satisfy section 86. [5]

Mandatory content — section 86(1)(b)​

Required informationNotes
The date on which it is issued—
Name, Taxpayer Identification Number (TIN) and VAT Registration Number of the supplierTanzania requires both the TIN and the VAT number
Description, quantity and other relevant specifications of the things supplied—
Total consideration payable and the amount of VAT included in that considerationVAT-inclusive presentation, with the tax shown separately
Name, address, TIN and VAT registration number of the customerRequired only where the value of the supply exceeds the minimum amount prescribed in the regulations
Any other additional information prescribed in the regulations—

Source snapshot — Tanzania VAT Act CAP 148 section 86, requiring a serially numbered tax invoice generated by an electronic fiscal device, listing the information it must include, and section 87 on adjustment notes Source snapshot captured 2026-07-30 — original

Missing customer details does not void the invoice — it voids the input tax claim

Section 86(2) draws a distinction worth understanding. A tax invoice that omits the customer particulars required by section 86(1)(b)(v) is still a valid invoice — but it cannot be used to support an input tax credit claim or any refund claim. The supplier stays compliant; the customer loses the deduction. If you are the buyer, check that your name, address, TIN and VAT number are on the invoice before you accept it. [5]

Why this guide shows no specimen invoice​

Most guides in this set show what a compliant document looks like. Tanzania deliberately does not, and the reason is worth stating rather than leaving as a silent gap.

TRA publishes no sample fiscal receipt: its EFD pages describe the four device classes and the obligations, not the output. Nor could this guide build one. A Tanzanian tax invoice is not a document the seller lays out — it is printed by an approved electronic fiscal device and carries a fiscal signature and a verification code that TRA's own receipt-verification service will check. Drawing a facsimile of that would produce something shaped exactly like a verifiable fiscal receipt while verifying against nothing, which is a forgeable artifact rather than a teaching aid.

So the section above is the answer: section 86(1)(b) fixes the particulars the device must print, and the device fixes the arrangement. If you need to see one, the receipt from any VAT-registered Tanzanian seller is the specimen — and it can be checked against TRA's verification service, which no picture here could be.

Originals and copies​

One original tax invoice must be issued for each taxable supply. Where the customer is a registered person and claims to have lost it, the issuer may provide a copy marked as such. [5]

Adjustment notes — Tanzania's credit/debit note​

Tanzania does not use "credit note" and "debit note" as statutory terms. Corrections travel on an adjustment note under section 87, which must contain: [5]

  • the date on which it is issued;
  • the name, TIN and VAT registration number of the supplier;
  • the nature of the adjustment event and the supply to which it relates;
  • the effect on the amount of VAT payable on the supply; and
  • the customer's name, TIN and VAT registration number, where the effect on the VAT payable exceeds the prescribed minimum.

The same asymmetry applies: an adjustment note is not invalid merely for omitting the customer particulars, but it cannot support a claim for a decreasing adjustment. An amended tax invoice may serve as an adjustment note if it complies with the regulations. [5]

Who must hold an EFD​

A person whose annual turnover is assessed at TZS 11 million and above must acquire an electronic fiscal device from an approved supplier and issue fiscal receipts or fiscal invoices with it. Failing to issue a fiscal receipt or fiscal invoice on receiving payment is an offence, and the buyer has a corresponding duty to demand one. EFDs hold data for at least 5 years or 1,800 days of transactions. See E-invoicing status below. [6]

E-invoicing status​

Tanzania runs a real-time fiscal-reporting regime built around Electronic Fiscal Devices (EFDs) rather than a Peppol- or EN 16931-style continuous transaction control network. Certified EFDs (electronic fiscal printers, electronic signature devices) have been mandatory for VAT-registered traders since 2010, and were extended to larger non-VAT traders from 2013; a software-based Virtual Fiscal Device (VFD) alternative, including system-to-system API integration, has been available since 2020. Transaction data is transmitted to the TRA's central Electronic Fiscal Device Management System (EFDMS) in near real time, enabling continuous VAT monitoring. [1] [2]

Source snapshot — Government Notice No. 192 of 2010: all taxable persons must register as EFD users Source snapshot captured 2026-07-20 — original

The 2025/26 Budget (presented 12 June 2025) proposed a further shift toward pre-clearance e-invoicing: integrating EFD machines, POS terminals, accounting software, ERPs and payment systems with an upgraded EFDMS that verifies and approves an invoice before it reaches the customer. As of this guide's last update, that upgrade has been announced in the budget but has no firm statutory effective date or transition timetable. [2]

Recent changes​

  • 2026-07-01 — Finance Act, 2026 amended section 51 of the VAT Act: platform operators are deemed the supplier of electronic services sold to unregistered persons in Mainland Tanzania, and the "electronic services" definition was widened. (United Republic of Tanzania — e-Gazette) — see issue
  • 2026-07-01 — Finance Act, 2026 amended sections 5 and 71 of the VAT Act: VAT withholding agents must file a monthly withholding statement within 10 days of the following month, with rates split 15% on goods and 12% on services (mixed supplies apportioned 3:2). (United Republic of Tanzania — e-Gazette) — see issue
  • 2026-07-01 — Finance Act, 2026 added VAT import exemptions to the Second Schedule, Part II, for LPG smart meters (HS 9028.10.00) and electric-vehicle charging stations (HS 8504.40.00). (United Republic of Tanzania — e-Gazette) — see issue
  • 2026-07-01 — Finance Act, 2026 raised the single-instalment digital service tax on non-resident digital-service providers from 2% to 3% of gross payment (Income Tax Act, CAP 332, section 116(1) — a separate income-tax charge, not a VAT rate). (United Republic of Tanzania — e-Gazette) — see issue

Frequently Asked Questions​

What is the standard VAT rate in Tanzania, and are there other rates?​

The standard rate is 18% in Mainland Tanzania.

Source snapshot — VAT Act CAP 148 s.5(1) — the VAT rate shall be eighteen percent Source snapshot captured 2026-07-20 — original A reduced 16% rate applies to specified B2C purchases paid through a bank or an approved electronic payment system, in effect since 1 September 2025. Exports of goods and certain services are zero-rated under sections 54, 55, 55A, 61A and 61B of the VAT Act (zero-rating sits in the body of the Act, not in its Schedule). Zanzibar runs a separate VAT regime (15% standard rate; 18% on banking, postal, telecoms, insurance and digital services), outside the scope of this guide. [1]

What is the VAT registration threshold in Tanzania?​

Registration is mandatory once taxable turnover exceeds TZS 200 million in a twelve-month period, or is equal to or greater than TZS 100 million in a six-month period ending at the end of the previous month. Application to the Commissioner General is due within 30 days of reaching the threshold; an intending trader may apply earlier. [1]

Do foreign digital marketplaces have to charge VAT on sales to Tanzanian consumers?​

From 1 July 2026, yes, for electronic services sold to unregistered customers. The Finance Act, 2026 added a deemed-supplier rule to section 51 of the VAT Act: where an electronic service is supplied to an unregistered person in Mainland Tanzania through an online intermediation service or digital marketplace, the platform operator — not the underlying seller — is treated as the supplier and must account for VAT. The definition of "electronic services" was also widened to cover any similar service delivered through the internet or a telecommunications network. [1]

Is e-invoicing mandatory in Tanzania?​

Real-time fiscal reporting already is. Certified Electronic Fiscal Devices (EFDs) have been mandatory for VAT-registered traders since 2010, extended to larger non-VAT traders from 2013, with a software Virtual Fiscal Device (VFD) option since 2020 — all reporting to the TRA's EFDMS in near real time. A further pre-clearance upgrade (EFDMS approving invoices before they reach the customer) was proposed in the 2025/26 Budget, but has no firm statutory effective date yet. [1] [2]

What are Tanzania's VAT withholding rules from July 2026?​

From 1 July 2026, a withholding agent must file a monthly withholding VAT statement within ten days of the month following the tax period, and must pay withheld VAT within ten days after the end of each tax period (VAT Act section 71, as amended). The withholding rate is 15% for goods and 12% for services; mixed supplies of goods and services are apportioned 3:2 between the two (VAT Act section 5, as amended). [1]