Tanzania Tax Updates: VAT

VAT Exemptions

VAT exemption on supply of aircraft and air craft maintenance to a local operator of air transportation; or air craft engine and air craft parts to a local manufacturer or assembler of aircraft or to a local operator of air transportation. The measure is intended to enhance competitiveness of domestic aircraft producers and assemblers in the market, attract investment into the Country, stimulate the growth of the Aviation industry, and support efforts to boost Tourism.
VAT exemption on all goods including material, supplies, equipment, machinery and motor vehicles for official use of armed forces as certified by the Minister responsible for defense.
VAT exemption on importation of Video Assistant Referee equipment and accessories upon approval by the Minister responsible for Sports.
VAT exemption on single axle tractors (Power Tiller) of HS Code 8701.10.00
Removal of VAT exemption on supply and importation of agricultural implements with HS Code 8201.10.00 (Spades and Shovels) and HS Code 8201.30.00 (Mattocks and Picks).
VAT exemption on supply of double refined edible oil from locally grown seeds by a local manufacturer for one year.
VAT exemption on importation or supply and importation of water sanitation and treatment chemicals. The exemption will be granted upon approval of the chemicals by the Minister responsible for Water.
VAT exemption on importation or supply of equipment and machinery for processing and storing bee products namely honey settling tank.

Other VAT changes

Introduction of definitions of gaming supply, online data service and serviced apartment.
VAT registered intending traders failing to start economic activity within the period specified in application to notify the Commissioner within 90 days giving reasons. Failure to comply will lead into deregistration.

VAT Zero Rating