Tanzania zero-rates subcontracted cross-border transport services

What changed in detail

The Tanzania Revenue Authority issued a Public Notice dated 6 August 2026, a tax ruling under Section 11 of the Tax Administration Act, Cap. 438. It directs that transportation services rendered by a Subcontractor and a Lead Transporter in the course of transporting goods across Tanzania’s borders are to be treated as international transport services and zero-rated under Section 61(3) of the VAT Act, Cap. 148 — forming the basis of VAT refund claims.

To benefit, a taxable person must hold supporting evidence: for lead transporters, a fiscal receipt, proof of payment, TANSAD, bill of lading, invoice, packing list and transit travel records; for subcontractors, fiscal receipts issued to the lead transporter or CFAs plus customs documentation such as C28/C40 licenses, release orders, movement sheets and cargo manifests. The ruling applies prospectively from its date of issuance and remains binding only while the subcontractor maintains full tax compliance.

What it means

Before this ruling, a subcontracted leg of a cross-border haul was at risk of being treated as standard-rated domestic transport rather than zero-rated international transport, denying the subcontractor the refund position the lead transporter enjoyed. The ruling closes that gap, but it is evidence-gated: the zero rating only holds if the subcontractor can actually produce the customs paperwork (C28/C40, movement sheets, cargo manifests) alongside the standard transport documents. Tanzanian logistics operators using subcontracted capacity on cross-border routes should review their document trail now, and treat this as prospective only — it does not appear to reopen refund claims for transport carried out before 6 August 2026.