Tanzania Introduces New 16% VAT Rate for Specific Electronic Payments Starting September 2025

• TRA introduces a new VAT rate of 16% starting 1 September 2025
• The 16% rate applies when the supply is taxable at the standard rate
• The supply must be made in Mainland Tanzania
• The recipient must not be VAT registered
• Payment must be made via an approved bank or electronic payment system
• The general VAT rate in Tanzania remains at 18%
• The 16% rate aims to encourage electronic payments and improve tax compliance

Source: fintua.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.

---

---