VATupdate

VAT rates in Tanzania

Quick overview

Standard Rate Reduced Rate Other Rates
18% N/A Zero-rated (0%) and exempt

The local name for VAT in Tanzania is Value-added tax (VAT).

There is basically 1 VAT rate in Tanzania:

  • Standard VAT rate is 18%

Recent developments

For more information about (recent) rate change developments in Tanzania, please click HERE.

Standard rate: 18%

This rate applies for all transactions that take place in Tanzania, unless an exception applies (such as a reduced rate, the zero rate or an exemption, or a reason to treat the transaction as outside scope of VAT).

Zero rate (0%)

Examples of goods and services taxable at 0% (with the right to deduct VAT)

  • Exports of goods
  • Supplies of goods and supplies of immovable property outside Tanzania
  • Exports of taxable services
  • Supplies of goods to a tourist or visitor by a licensed duty-free vendor who holds documentary evidence that the goods have been removed from Tanzania
  • Supply of ancillary transport services for goods in transit through mainland Tanzania, where the service is an integral part of the international transport service and in respect of goods stored at the port, airport or a declared customs area for not more than 30 days while awaiting onward transport

The term “exempt supplies” refers to supplies of goods and services that are not liable to VAT and that do not qualify for input tax deduction.

Examples of exempt supplies of goods and services without the right to deduct VAT

  • Agricultural, horticultural or forestry machinery for soil preparation or cultivation
  • Agriculture equipment, implements & inputs
  • Fishery implements
  • Crop agricultural insurance
  • Medicine or pharmaceutical products excl. food supplements/vitamins
  • Educational materials & services
  • Health care services
  • Transportation of persons
  • Petroleum products and equipment for natural gas
  • Intermediary (financial) services
  • Immovable property (e.g., sale of vacant land)
  • Animal feeding

A global VAT/GST rate overview can be found here (note this is a work in progress).

This post was last updated on September 29, 2021.

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