- In July 2025, Tanzania reduced the VAT rate from 18 percent to 16 percent for B2C purchases through banks or approved electronic payment systems.
- The reduction does not apply to all transactions.
- On 2 September 2025, the TRA confirmed the provision was effective from 1 September 2025.
- Implementation rules are pending finalization by the Commissioner General.
- A follow-up notice will detail eligibility criteria, application procedures, and scope.
- Uncertainty remains on how consumers and businesses can benefit from the reduced VAT rate.
Source: vatcalc.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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