Prepare, review, or classify transactions for a Tanzania VAT return. Standard rate 18% (16% reduced for non-VAT-registered B2C electronic payments from Sep 2025). EAC customs union but no common VAT. Withholding VAT 3% goods / 6% services from July 2025. ALWAYS read before handling Tanzania VAT w…
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Standard VAT rate (Mainland)
18%Value Added Tax Act, Cap 148, s.5
Reduced rate - B2C electronic payments (Mainland)
16% on standard-rated supplies to persons NOT VAT-registered where payment is made via bank or electronic payment system approved by the Commissioner GeneralValue Added Tax Act, Cap 148 (as amended by Finance Act 2025 (in force 1 Jul 2025 unless stated))
Standard VAT rate (Zanzibar)
15% (18% for banking, postal, telecommunication, insurance and digital services)Zanzibar VAT Act (administered by ZRA)
Zero rate
0% - exports of goods, certain exported services, international transportValue Added Tax Act, Cap 148, Schedule (zero-rated supplies)
VAT registration threshold (Mainland)
Annual taxable turnover above TZS 200,000,000Value Added Tax Act, Cap 148, s.28 (threshold per Finance Act 2023)
VAT registration threshold (Zanzibar)
TZS 100,000,000Zanzibar VAT Act
Mandatory registration regardless of turnover
Professional service providers (e.g. lawyers, accountants) and government entities/institutions carrying on economic activitiesValue Added Tax Act, Cap 148, s.28
Reviewed against the cited tax authorities by Baraka Cassian on 2026-06-12. Items flagged for further clarification are tracked separately and excluded here. This block is generated from verified
skill_facts— edit the facts, not the prose.
Quick reference
| Field | Value |
|---|---|
| Country | Tanzania |
| Standard rate | 18% (16% reduced for B2C electronic payments to unregistered persons, from Sep 2025) |
| Zero rate | 0% (exports, agricultural inputs, diplomatic, SEZ) |
| Filing portal | https://ots.tra.go.tz |
| Authority | Tanzania Revenue Authority (TRA) |
| Currency | TZS |
| Filing frequency | Monthly |
| Deadline | 20th of following month |
| Registration | TZS 200,000,000 annual turnover |
| Withholding VAT | 3% goods / 6% services (from July 2025) |
| Primary legislation | VAT Act 2014 (Act No. 5) |
| EAC members | Kenya, Uganda, Rwanda, Burundi, South Sudan, DRC |
| Contributor | Open Accounting Skills Registry |
| Validated by | Pending |
| Last research update | April 2026 |
Minimum viable -- bank statement. Acceptable from CRDB, NMB (National Microfinance Bank), Stanbic TZ, Standard Chartered TZ, NBC, or any Tanzanian bank.
Supplier pattern library
| Pattern | Treatment | Notes |
|---|---|---|
| CRDB | EXCLUDE | Exempt financial |
| NMB, NATIONAL MICROFINANCE | EXCLUDE | Same |
| STANBIC TZ, NBC | EXCLUDE | Same |
| TRA, TANZANIA REVENUE | EXCLUDE | Tax payment |
| CUSTOMS | Check for import VAT | |
| NSSF, PPF | EXCLUDE | Social security |
| TANESCO | Domestic 18% | Electricity |
| DAWASA | Domestic 18% | Water |
| VODACOM TZ, AIRTEL TZ, TIGO, HALOTEL | Domestic 18% | Telecoms |
| GOOGLE, MICROSOFT, AWS | Reverse charge 18% | Non-resident |
TZS 10M net. Output VAT = TZS 1.8M (18%).
Goods from Kenya TZS 20M. VAT 18% at customs = TZS 3.6M. Recoverable. No intra-community mechanism.
Output: A1-A7 (18% sales, zero-rated, exempt, total, output VAT, adjustments, total output).
Input: B1-B7 (local purchases, imports, input local, input imports, total input, adjustments, net input).
Net: C1-C3 (net, credit b/f, net payable).
EC1 -- SaaS. Reverse charge 18%. Net zero. EC2 -- Export to Kenya. Zero-rated. Input recoverable. EC3 -- EAC import (Uganda). VAT at customs. Recoverable. EC4 -- Mining. Escalate. EC5 -- Deemed supply cessation. 18% on market value. EC6 -- Tourism hotel. May qualify for zero-rating if foreign currency. Reviewer flag. EC7 -- Credit note. Adjust in A6. EC8 -- Bad debt. 12 months + write-off.
Test 1 -- TZS 10M sale. Output 1.8M. Test 2 -- TZS 5M furniture + 900K VAT. Recoverable. Test 3 -- Indian IT TZS 5M. Output 900K, input 900K. Net zero. Test 4 -- Coffee export TZS 100M. Zero-rated. Test 5 -- Entertainment. Blocked. Test 6 -- Exempt financial TZS 50M. No output. Input not recoverable. Test 7 -- Kenya import TZS 20M. Customs VAT 3.6M. Recoverable. Test 8 -- Gift TZS 500K. Deemed supply. Output 90K.
Out of scope: CIT 30%, PAYE 0%-30%, SDL 4%, NSSF/PPF 10%+10%.
This skill and its outputs are provided for informational and computational purposes only and do not constitute tax, legal, or financial advice. Open Accountants and its contributors accept no liability for any errors, omissions, or outcomes arising from the use of this skill. All outputs must be reviewed and signed off by a qualified professional before filing or acting upon.
The most up-to-date, verified version of this skill is maintained at openaccountants.com.
Review status
Accountant-reviewed
Reviewed by a named licensed practitioner against the stated sources, as general reference material.
Accountant-reviewed
Reviewed by Baraka Cassian · 12 June 2026
A named accountant reviewed this complete Guide version within the stated scope. It is not a guarantee.
View review record →Other Tanzania computations in the OpenAccountants Tax Library.
Non-resident B2C electronic services
Simplified VAT registration; NO registration threshold; charge 18% on B2C supplies to Mainland consumersValue Added Tax Act, Cap 148 (non-resident electronic services provisions); VAT (Registration of Non-Resident Electronic Service Suppliers) Regulations
VAT return frequency and deadline
Monthly; due on the 20th day of the following month, regardless of whether the 20th falls on a weekend or public holidayValue Added Tax Act, Cap 148, s.66 (deadline rule per Finance Act 2025 (in force 1 Jul 2025 unless stated))
Withholding VAT - introduction
Designated agents (MoF, government institutions retaining own-source revenue, CG-appointed VAT-registered persons) must withhold part of the VAT on taxable suppliesValue Added Tax Act, Cap 148 (as amended by Finance Act 2025 (in force 1 Jul 2025 unless stated))
Withholding VAT - rates
Goods: withhold 3 percentage points of the 18% VAT (supplier receives 15%); Services: withhold 6 percentage points (supplier receives 12%)Value Added Tax Act, Cap 148 (as amended by Finance Act 2025 (in force 1 Jul 2025 unless stated))
Withholding VAT - remittance and credit
Agent remits withheld VAT to TRA by the 20th of the following month and issues a VAT Withholding Certificate; supplier claims withheld amount as credit in its VAT returnValue Added Tax Act, Cap 148 (as amended by Finance Act 2025 (in force 1 Jul 2025 unless stated))
Input tax claim time limit
6 months, running from the date of the fiscal receiptValue Added Tax Act, Cap 148, s.69
Pre-registration input tax
VAT incurred in the 6 months before registration claimable no later than the third VAT return after registrationValue Added Tax Act, Cap 148
Partial exemption thresholds
Taxable supplies >90% of total: full input credit; <10%: no input credit; 10%-90%: apportion (average method or direct attribution)Value Added Tax Act, Cap 148, s.70 (partial input tax credit)
Reverse charge on imported services
Registered person accounts for output VAT on imported services only where exempt supplies are 10% or more of total suppliesValue Added Tax Act, Cap 148, imported services provisions
VAT refunds
Remaining credit claimable 6 months after refund first due (all intervening returns filed); claim must be supported by an auditor's certificate of genuineness; consistent-refund businesses (e.g. exporters) may apply to lodge monthlyValue Added Tax Act, Cap 148, s.80-83 (refunds)
VAT deferment on capital goods
Deferment of VAT on imported capital goods CEASES to apply from 30 June 2026Value Added Tax Act, Cap 148 (sunset per Finance Act 2025 (in force 1 Jul 2025 unless stated))
Fiscal receipts / EFD
Fiscal receipt mandatory for every supply; includes receipts from fiscal devices (EFD/EFDMS), Government e-Payment Gateway (GePG) and other CG-approved electronic systemsValue Added Tax Act, Cap 148; Tax Administration (Electronic Fiscal Devices) Regulations
Blocked input tax
No credit for: entertainment; membership of sporting/social/recreational clubs; spare parts and repair/maintenance of passenger vehiclesValue Added Tax Act, Cap 148, s.68 restrictions
Key exempt supplies (selected)
Agricultural implements/inputs and basic food; livestock; medicine/pharmaceuticals; health care; education services/materials; financial services; insurance (health, life, aircraft, workers comp, crop, livestock); residential rent; vacant land; un-bottled water; specified petroleum products; gaming supply; solar equipment; passenger transport (excl. taxis, rental cars, boat charters)Value Added Tax Act, Cap 148, Schedule (exempt supplies)
Natural gas for CNG vehicle fuelling
Exempt from VAT from 1 Jul 2025 to 30 Jun 2028 (supply of natural gas for conversion to CNG for motor vehicles)Value Added Tax Act, Cap 148 (as amended by Finance Act 2025 (in force 1 Jul 2025 unless stated))
Currency of VAT accounting
TZSTax Administration Act, Cap 438
Filing portal
TRA online Taxpayer Portal (e-filing)TRA systems
Default rate where supply classification unknown (agent default)
18% standard rateProposed processing default - not law
Default input claim where documentation unknown (agent default)
Not deductible until a valid fiscal receipt is sightedProposed processing default - not law; consistent with VAT Act fiscal receipt requirement
Quick reference
| Field | Value | |---|---| | Country | Tanzania | | Standard rate | 18% (16% reduced for B2C electronic payments to unregistered persons, from Sep 2025) | | Zero rate | 0% (exports, agricultural inputs, diplomatic, SEZ) | | Filing portal | https://ots.tra.go.tz | | Authority | Tanzania Revenue Authority (TRA) | | Currency | TZS | | Filing frequency | Monthly | | Deadline | 20th of following month | | Registration | TZS 200,000,000 annual turnover | | Withholding VAT | 3% goods / 6% services (from July 2025) | | Primary legislation | VAT Act 2014 (Act No. 5) | | EAC members | Kenya, Uganda, Rwanda, Burundi, South Sudan, DRC | | Contributor | Open Accounting Skills Registry | | Validated by | Pending | | Last research update | April 2026 |
R-TZ-1 -- Mining
Mining has specific provisions under Mining Act 2010. Escalate.Mining Act 2010
Supplier pattern library
| Pattern | Treatment | Notes | |---|---|---| | CRDB | EXCLUDE | Exempt financial | | NMB, NATIONAL MICROFINANCE | EXCLUDE | Same | | STANBIC TZ, NBC | EXCLUDE | Same | | TRA, TANZANIA REVENUE | EXCLUDE | Tax payment | | CUSTOMS | Check for import VAT | | | NSSF, PPF | EXCLUDE | Social security | | TANESCO | Domestic 18% | Electricity | | DAWASA | Domestic 18% | Water | | VODACOM TZ, AIRTEL TZ, TIGO, HALOTEL | Domestic 18% | Telecoms | | GOOGLE, MICROSOFT, AWS | Reverse charge 18% | Non-resident |
Classification rules
18% standard (16% for B2C electronic payments to unregistered, from Sep 2025). 0% exports, agricultural inputs, diplomatic, SEZ. Exempt: unprocessed foodstuffs, financial, medical, education, residential rental, life insurance, public transport, agricultural equipment, water (public utilities), petroleum (fuel levy).
Reverse charge
Reverse charge: non-resident services. Self-assess 18%. Net zero.VAT Act s.16
Withholding VAT (from July 2025)
Designated agents withhold 3% of VAT on goods, 6% on services. Remit by 20th. Supplier needs certificate to claim credit.
EAC imports
VAT at border, no intra-community mechanism.
Blocked input tax categories
Blocked (s.64): entertainment, vehicles < 13 seats (unless taxi/hire/driving instruction), clubs, personal use, non-taxable supply purchases.s.64
De minimis for exempt
If < 5% of total, full recovery may be allowed. Reviewer confirm.
Deemed supplies
Non-business use, gifts > TZS 100,000, cessation with stock.
Filing and penalties
Monthly, 20th. Late filing: 1%/month (max 100%), min TZS 150K. Late payment: BoT rate + 5%, daily.
Rendered from the canonical facts model · facts last reviewed Jun 12, 2026. General reference only — confirm with a qualified professional before acting.
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