- Zanzibar implemented a 15% VAT on digital services in August 2024
- VAT applies to digital services like software, website hosting, and e-learning platforms
- Resident marketplaces facilitating sales for non-resident providers are responsible for VAT
- Payment details, IP address, and similar information determine taxable transactions
- Non-resident providers must register for VAT regardless of revenue
- Registration is done online, and returns and payments are due monthly in USD
- Zanzibar’s VAT system is separate from Mainland Tanzania’s
- Non-resident providers must comply with regulations for each jurisdiction
- Compliance with Zanzibar’s VAT system is crucial for non-resident digital service providers targeting consumers in the region
Source: vatabout.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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