- Changes have been made to invoice requirements, including the definition of “fiscal receipt” and the repeal of conditions for tax invoices.
- VAT deferment on capital goods has been extended to cover locally manufactured goods, but VAT deferment on imported capital goods will cease in 2026.
- The definition of “electronic services” has been extended to include online intermediation and online advertisement services.
- Certain supplies, such as locally manufactured garments made from locally grown cotton and locally manufactured fertilizers, are zero-rated for a period of time.
- The Value Added Tax (VAT) Act has been amended to provide clarity on input tax credits. The Tanzania Revenue Authority (CG) is empowered to grant VAT exemptions for certain imports and supplies, including raw materials for packaging materials for pharmaceutical products and prefabricated structures for poultry farming.
- Other items exempt from VAT include certain raw materials, houses sold by real estate developers, precious metals and stones, double refined edible oil, automobile accessories for natural gas or electricity conversion, and moulds for pharmaceutical production.
Source EY
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