Tanzania: VAT and DST Obligations for Nonresident Providers of Cross-Border Electronic Services

• Nonresident providers of electronic services in Tanzania must register for VAT and DST voluntarily.
• The registration framework is simplified and developed by the Tanzanian Revenue Authority (TRA).
• The term “electronic services” includes various online activities such as search engines, downloadable content, and advertising.
• Electronic services are sourced to Tanzania based on payment and resident proxies.
• There is no registration threshold, so nonresidents must collect VAT at an 18% rate and pay a 2% DST on all gross payments.
• Tanzania aims to improve compliance by simplifying the registration process and providing guidance to taxpayers.
• Tanzania has harmonized its VAT and DST rules for electronic services and requires nonresidents to register for both regimes simultaneously.
• Nonresidents providing electronic services in Tanzania should review their activities carefully as both regimes apply without a registration threshold.

Source: kpmg.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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