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Tanzania’s 2025 Finance Act: New VAT Rates and Withholding Rules Implemented

  • Tanzania’s Finance Act 2025 was enacted on 30 June 2025.
  • Tax measures from the 2025-26 Budget Speech were implemented with some adjustments.
  • Measures apply from 1 July 2025 unless specified otherwise.
  • VAT rate reduced to 16 percent for B2C online payments via approved systems starting 1 September 2025.
  • New VAT withholding rules require government entities and designated agents to withhold 3 percent VAT on goods and 6 percent VAT on services.

Source: regfollower.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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