The Value Added Tax Act, Chapter 148 [Principal Legislation], Revised Edition 2023

53. Progressive or periodic supplies. 290  THE VALUE ADDED TAX ACT [CAP. 148 R.E. 2023] (b) Supplies for Use Outside the United Republic

54 — Zero-rating of immovable property.

54. Zero-rating of immovable property.

55 — Zero-rating of supply of goods.

55. Zero-rating of supply of goods.

56 — Zero-rating of fertiliser.

56. Zero-rating of fertiliser.

57 — Zero-rating of cotton garments

57. Zero-rating of cotton garments . AG

58 — Leased goods used outside United Republic.

58. Leased goods used outside United Republic. O of

59 — Goods used to repair temporary imports.

59. Goods used to repair temporary imports. n io

60 — Supply of goods and services to non-resident warrantor.

60. Supply of goods and services to non-resident warrantor. s is m

61 — Goods for use in international transport services.

61. Goods for use in international transport services. er tp

62 — Services supplied for use outside United Republic.

62. Services supplied for use outside United Republic. ou ith

63 — Services connected with temporary imports.

63. Services connected with temporary imports. w

64 — Zero-rating of supply of services.

64. Zero-rating of supply of services. ed ut

65 — Zero-rating supply of electricity services.

65. Zero-rating supply of electricity services. rib st

66 — Intellectual property rights for use outside United Republic.

66. Intellectual property rights for use outside United Republic. di or

67 — Inter-carrier telecommunication services.

67. Inter-carrier telecommunication services. ed uc od (c) Special Rules re pr

68 — Value added tax representatives of non-residents.

68. Value added tax representatives of non-residents. be

69 — Services from foreign branch.

69. Services from foreign branch. ay m ok bo part v is RETURNS, PAYMENTS AND REFUNDS th of (a) Returns and Payment rt pa o

70 — Value added tax returns.

70. Value added tax returns. d.N ve (b) Net Amount of Value Added Tax Payable r se re

71 — Calculation and payment of net amount.

71. Calculation and payment of net amount. s ht rig (c) Input Tax Credits ll .A a

73 — Timing of input tax credits.

73. Timing of input tax credits. an fT

74 — Partial input tax credit.

74. Partial input tax credit. to en (d) Other Adjustments n m er

75 — Post supply adjustments for adjustment events.

75. Post supply adjustments for adjustment events. ov G

76 — Limitations on adjustments.

76. Limitations on adjustments. 25 20

77 — Period of making adjustments.

77. Period of making adjustments. ©

78 — Post supply adjustments for bad debts.

78. Post supply adjustments for bad debts.

79 — Application for private use.

79. Application for private use.

80 — Adjustment on making insurance payment.

80. Adjustment on making insurance payment.

81 — Adjustment on receiving insurance payments.

81. Adjustment on receiving insurance payments. 291  THE VALUE ADDED TAX ACT [CAP. 148 R.E. 2023]

82 — Adjustment to correct minor errors.

82. Adjustment to correct minor errors.

83 — Adjustment on becoming registered.

83. Adjustment on becoming registered.

84 — Adjustment on cancellation of registration.

84. Adjustment on cancellation of registration. (e) Refunds . AG

85 — Carry forward of negative net amount.

85. Carry forward of negative net amount. O

86 — Refund without carry forward.

86. Refund without carry forward. of n

89 — Refund to diplomats and international bodies.

89. Refund to diplomats and international bodies. tp ou ith w part vi ed DOCUMENTS AND RECORDS ut rib st

92 — Documentation issued by or to agents.

92. Documentation issued by or to agents. uc od

93 — Records and accounts. re

93. Records and accounts. re pr be part vii ay m ADMINISTRATION ok bo

95 — Continuity of partnerships or unincorporated associations.

95. Continuity of partnerships or unincorporated associations. of

96 — Death or insolvency of taxable person, mortgagee in possession.

96. Death or insolvency of taxable person, mortgagee in possession. rt pa

97 — Interaction with income tax.

97. Interaction with income tax. o d .N ve part viii r se re GENERAL PROVISIONS s ht rig

98 — Power to make regulations.

98. Power to make regulations. ll .A

100 — Transitional provisions.

100. Transitional provisions. za an fT SCHEDULE to en n m er ov G 25 20 © 292  CHAPTER 148 THE VALUE ADDED TAX ACT An Act to make a legal framework for the imposition and collection of, . AG O administration and management of other value added tax and to repeal of n the Value Added Tax Act, No. 24 of 1997 and to provide for other related io s is matters. m er tp [1st July, 2015] ou [GN. No. 224 of 2015] ith w Acts Nos. 8 of 2019 ed 5 of 2014 13 of 2019 ut 2 of 2016 8 of 2020 rib st 4 of 2017 3 of 2021 di 7 of 2017 5 of 2022 or ed 9 of 2017 9 of 2022 uc 4 of 2018 7 of 2023 od 6 of 2019 re pr be ay m PART I ok bo PRELIMINARY PROVISIONS is th of rt pa Short title 1.–(1) This Act may be cited as the Value Added Tax Act. o .N (2) [Omitted.] d r ve se re Interpretation 2.–(1) In this Act, unless the context otherwise requires- s ht “adjustment event”- rig ll .A Acts Nos. (a) in relation to a supply, other than a supply mentioned a ni 2 of 2016 s. 90 in paragraph (b) means- za 5 of 2022 s. 122 an 7 of 2023 s. 63 (i) a cancellation of the supply; fT to (ii) an alteration in the consideration for the supply; en m (iii) the return of the thing supplied or part thereof to n er ov the supplier; or G 25 (iv) a variation of, or alteration to, all or part of the 20 supply and which has the effect that the supply © becomes or ceases to be a taxable supply; and 293  THE VALUE ADDED TAX ACT [CAP. 148 R.E. 2023] (b) in relation to a taxable supply of a voucher, means the giving of the voucher in full or part payment for a supply that is exempt; or zero rated; “agent” means a person who acts on behalf of another person in business; . AG O “alternative financing product” means any financial product of n approved by the Bank of Tanzania other than conventional io s is financial products; m er tp “ancillary transport services” means stevedoring services, ou lashing and securing services, cargo inspection services, ith w preparation of customs documentation, container ed ut rib handling services and the storage of transported goods or st di goods to be transported; or ed “association of persons” means a partnership, trust or body of uc od persons formed, organised, established or recognised as such re pr in Mainland Tanzania, and does not include a company; be “Commissioner General” means the Commissioner General ay Cap. 399 m of the Tanzania Revenue Authority appointed under the ok bo Tanzania Revenue Authority Act; is th “commercial accommodation” means accommodation in of rt a building including part of a building or a group of pa o .N buildings operated as a hotel, motel inn, boarding house, d ve guest house, hostel, lodge, cottage, serviced apartment r se re or similar establishment, or on sites developed for use s ht as camping sites, where lodging is regularly or normally rig ll provided for a periodic charge, or other accommodation .A a ni offered for short term occupation by person other than za an as the individual’s main residence; fT to Cap. 212 “company” has the same meaning ascribed to it under the en m Companies Act; n er “connected persons” means- ov G (a) two persons, if the relationship between them is such 25 20 that one person can reasonably be expected to act in © accordance with the intention of the other, or both persons can reasonably be expected to act in accordance with the intentions of a third person; 294  THE VALUE ADDED TAX ACT [CAP. 148 R.E. 2023] (b) in the case of an individual, the individual and- (i) the husband or wife of the individual; (ii) the husband or wife of a relative of the individual; (iii) a relative of the individual’s husband or wife; (iv) the husband or wife of a relative of the individual’s . AG O husband or wife; and of n (v) a relative of the individual; io s is (c) a partnership and a partner in the partnership, if the m er tp partners, either alone or together with other persons ou who are related to the partner, controls ten percent ith w or more of the rights to income or capital of the ed ut rib partnership; st di (d) a company and a shareholder in the company, if the or ed shareholder, directly or indirectly, either alone or uc od together with persons who are connected with the re pr shareholder, controls ten percent or more of the voting be power in the company or the rights to distributions of ay m income or capital by the company; ok bo (e) a company and another company, if a person, directly is th or indirectly, either alone or together with persons who of rt are connected with the person who controls ten percent pa o .N or more of the shareholding rights, or the rights to d ve distributions of income or capital in both of them; r se re (f) a person acting in the capacity of trustee of a trust and s ht an individual who is or may be a beneficiary of that rig ll trust or, in the case of an individual whose relative is or .A a ni may be a beneficiary of the trust; and za an (g) a person who is in control of another person if the fT to former is legally or operationally in a position to en m exercise restraint or direction over the latter; n er “document” means a statement in writing, including an ov G account, assessment, book, certificate, claim, note, notice, 25 20 order, record, return or ruling kept either in paper form © or electronic form; 295  THE VALUE ADDED TAX ACT [CAP. 148 R.E. 2023] “economic activity” means- (a) an activity carried on continuously or regularly by a person, which involves or is intended to involve the supply of goods, services, or immovable property, including- (i) an activity carried on in the form of a business, . AG O profession, vocation, trade, manufacture, or of n undertaking of any kind, whether or not the io s is activity is undertaken for profit; or m er tp (ii) a supply of property by way of lease, hire, license, ou or similar arrangement; ith w (b) a one-off adventure or concern in the nature of a trade; ed ut rib and st di (c) anything done during or in respect of the or ed commencement or termination of an economic activity uc od as defined under paragraph (a) or (b) of this definition re pr provided that ‘’economic activity” does not include- be (i) the activities of providing services by employee to ay m employer; or ok bo (ii) activities performed as a director of a company, is th except where the director accepts such office in of rt carrying on an economic activity, in which case pa o .N those services shall be regarded as being supplied d ve in the course or furtherance of that economic r se re activity; s ht “entertainment” means the provision of food, beverages, rig ll amusement, recreation or hospitality of any kind; .A a ni “exempt” in relation to a supply or import, means a supply or za an import that is specified as exempt under this Act or a supply fT to of a right or option to receive a supply that will be exempt; en m “export” in relation to a supply of goods, means the removal n er of goods from a place in Mainland Tanzania to a place ov G outside the United Republic, and in the absence of proof 25 20 to the contrary, the following are sufficient evidence that © the goods have been so exported- (a) evidence of the consignment or delivery of the goods to an address outside the United Republic; or 296  THE VALUE ADDED TAX ACT [CAP. 148 R.E. 2023] (b) evidence of the delivery of the goods to the owner, charterer, or operator of a ship, aircraft or other means of transport engaged in international transport for the purpose of carrying the goods outside the United Republic; . AG O “fair market value of supply” means- of n (a) the consideration the supply would fetch in an open io s is market transaction freely made between persons who m er tp are not connected; or ou (b) where it is not possible to determine an amount under ith w paragraph (a), the fair market value which a similar ed ut rib supply would fetch in an open market transaction st di freely made between persons who are not connected, or ed adjusted to take account of the differences between uc od such supply and the actual supply; re pr Cap. 417 “finance lease” means a lease that is treated as a finance lease be under the Financial Leasing Act, but does not include a ay m hire purchase agreement; ok bo “financial services” means services of- is th (a) granting, negotiating, and dealing with loans, credit, credit of rt guarantees, and security for money, including management pa o .N of loans, credit, or credit guarantees by the grantor; d ve (b) transactions concerning money deposit, current r se re accounts, payments, transfers, debts, cheques or s ht negotiable instruments, other than debt collection or rig ll debt factoring; .A a ni (c) transactions relating to financial derivatives, forward za an contracts, options to acquire financial instruments and fT to similar arrangements; en m (d) transactions relating to shares, stocks, bonds, and other n er securities, but does not include custody services; ov G (e) transactions involving granting or transferring 25 20 ownership of an interest in a scheme whereby provision © is made for the payment or granting of benefits by a benefit fund, provident fund, pension fund, retirement annuity fund, preservation fund, or similar fund; 297  THE VALUE ADDED TAX ACT [CAP. 148 R.E. 2023] (f) transactions involving the provision of, or transfer of ownership of a health or life insurance contract or the provision of reinsurance in respect of such contract; (g) making payment or collection of an amount of interest, principal, dividend, or other amount in respect of . AG O any share, debt security, equity security, participatory of n security, credit contract, contract of life insurance, or io s is futures contract; and m er tp (h) foreign exchange transactions, including the supply of ou foreign drafts and international money orders, ith w but does not include supply of the services of arranging for ed ut rib or facilitating any of the services specified under paragraphs st di (a) to (h); or ed “fiscal receipt” has the meaning described to it under the uc od Cap. 438 Tax Administration Act; re pr “fixed place” in relation to the carrying on of an economic be activity, means a place at or through which the activity is ay m carried on, being- ok bo (a) a place of management; is th (b) a branch, office, factory, or workshop; of rt (c) a mine, an oil or gas well, a quarry, or any other place of pa o .N extraction of natural resources; or d ve (d) a building site or construction or installation project; r se re “goods” means all kinds of tangible movable property, s ht excluding shares, stocks, securities, or money; rig ll “government entity” means- .A a ni (a) the Government of the United Republic, a Ministry, za an Department or Agency of that Government; fT to (b) a statutory body, authority, or enterprise owned or en m operated by the Government of the United Republic; or n er (c) a local government authority; ov G “import” means bringing or causing goods to be brought 25 20 from outside the United Republic into Mainland Tanzania; © “imported services” means services supplied to a taxable person if the supply of the services is not made in the United Republic as determined under this Act; 298  THE VALUE ADDED TAX ACT [CAP. 148 R.E. 2023] “immovable property” includes- (a) an interest in or right over land; (b) a personal right to call for or be granted an interest in or right over land; (c) a right to occupy land or any other contractual right . AG O exercisable over or in relation to land; of n (d) the provision of accommodation; or io s is (e) a right or option to acquire anything mentioned in m er tp paragraphs (a) to (d); ou “income tax” has the meaning ascribed to it under the ith Cap. 332 w Income Tax Act; ed ut rib “input tax” in relation to a taxable person, means- st di (a) value added tax imposed on a taxable supply made to or ed the person, including value added tax payable by the uc od person on a taxable supply of imported services; re pr (b) value added tax imposed on a taxable import of goods be by the person; and ay m (c) input tax charged under the law governing ok bo administration of value added tax applicable in is th Tanzania Zanzibar; of rt “input tax credit” in relation to a taxable person, means a pa o .N credit allowed for input tax incurred by the person; d ve “international assistance agreement” means an agreement r se re between the Government of the United Republic and a s ht foreign government or a public international organisation rig ll for the provision of financial, technical, humanitarian, or .A a ni administrative assistance to the United Republic; za an “international transport services” means the services, fT to other than ancillary transport services of transporting en m passengers or goods by road, rail, water, or air- n er (a) from a place outside the United Republic to another ov G place outside the United Republic; 25 20 (b) from a place outside the United Republic to a place in © Mainland Tanzania; or (c) from a place in Mainland Tanzania to a place outside the United Republic; 299  THE VALUE ADDED TAX ACT [CAP. 148 R.E. 2023] “Minister” means the Minister responsible for finance; “money” means- (a) any coin or paper currency that is legal tender in the United Republic or another country; (b) a negotiable instrument used or circulated, or intended . AG O for use or circulation, as currency of the United of n Republic or another country; io s is (c) a medium of exchange, promissory note, bank draft, m er tp postal order, money order, or similar instrument; or ou (d) any payment for supply by way of credit card or debit ith w card or crediting or debiting an account, ed ut rib and shall not include a collector’s piece or, a coin medal, paper st di money, collected as antique; or ed “net amount” in relation to a tax period, means the amount uc od calculated under section 70; re pr “non-profit organisation” means a charitable or religious be organisation established and functions solely for- ay m (a) the relief of poverty or distress of the public; ok bo (b) the provision of general public health, education or is th water; and of rt (c) the supply of religious services; pa o .N “output tax” in relation to a taxable person, means value d ve added tax payable by the person in respect of- r se re (a) a taxable supply made; and s ht (b) a taxable supply of imported services acquired; rig ll “partnership” means two or more persons carrying on an .A a ni economic activity; za an “person” means- fT to (a) an individual; en m (b) a company; n er (c) an association of persons; ov G (d) a Government entity, whether or not that entity is 25 20 ordinarily treated as a separate person; © (e) a foreign government or a political subdivision of a foreign Government; (f) a non government organisation; or (g) a public international organisation; 300  THE VALUE ADDED TAX ACT [CAP. 148 R.E. 2023] “prepaid telecommunications product” means a phone card, prepaid card, recharge card, or any other form of prepayment for telecommunication services; “progressive or periodic supply” means- (a) a supply made progressively or periodically under . AG O an agreement, arrangement or law that provides for of n progressive or periodic payments; io s is (b) a supply by way of lease, hire, license or other right to m er tp use property, including a supply under a finance lease; ou or ith w (c) a supply made directly in the construction, major ed ut rib reconstruction, or extension of a building or st di engineering work; or ed “registered person” means a person registered for value uc od added tax under this Act; re pr “registration threshold” means the amount prescribed under be section 28(4); ay m “relative of an individual” means a brother, sister, ancestor ok bo or lineal descendant of the individual; is th “residential premises” means an area occupied or designed to of rt be occupied and capable of being occupied as a residence, pa o .N and includes- d ve (a) any garage, storage space, or other space associated r se re with the premises, so long as that space is of a type s ht commonly considered to be part of such residential rig ll premises; and .A a ni (b) any land that is reasonably attributable to the premises, za an but does not include any premises or part of premises that is fT to used to provide commercial accommodation; en m “resident” means an individual whose permanent home is in n er Mainland Tanzania; ov G “resident company” means a company incorporated in 25 Cap. 212 20 Tanzania or issued with the certificate of compliance © under the Companies Act or its centre of management and control is in Mainland Tanzania; 301  THE VALUE ADDED TAX ACT [CAP. 148 R.E. 2023] “resident trusts” means the trust whose majority of members of trustees are residents of Mainland Tanzania or the place of management and control of the trust is in Mainland Tanzania; “resident association of persons” means an association of . AG O persons other than a trust- of n (a) formed in Mainland Tanzania; or io s is (b) its place of management and control is in Mainland m er tp Tanzania. ou “resident Government entity” means a Government entity ith w with residence in Mainland Tanzania; ed ut rib “sale” means a transfer of the right to dispose of goods or st di immovable property as owner, including exchange or or ed barter, and shall not include an offer or exposure of goods uc od or immovable property for sale; re pr “services” means anything that is not goods, immovable be property or money including- ay m (a) a provision of information or advice; ok bo (b) a grant, assignment, termination, or surrender of a right; is th (c) the making available of a facility, opportunity, or of rt advantage; pa o .N (d) an entry into an agreement to refrain from or tolerate d ve an activity, a situation, or the doing of an act; and r se re (e) an issue, transfer, or surrender of a license, permit, s ht certificate, concession, authorisation, or similar right; rig ll “service directly related to land” means service- .A a ni (a) physically rendered on land; za an (b) of experts and estate agents relating to specific land; or fT to (c) relating to construction work undertaken or to be en m undertaken on specific land; n er “supply” means any kind of supply whatsoever; ov G “tax decision” has the same meaning as ascribed in the Tax 25 Cap. 348 20 Administration Act and shall include a decision referred © to under section 93; 302  THE VALUE ADDED TAX ACT [CAP. 148 R.E. 2023] “tax fraction” means the amount out of tax calculated in accordance with the following formula- R ______ 100 + R . AG O where “R” is the rate of value added tax specified in section 5; of n “tax invoice” means a document issued in accordance with io s is section 89 and regulations made under this Act; m er tp “tax period” means a calendar month, beginning at the start ou of the first day of the month and ending at the last day of ith w the month; ed ut rib “taxable import” means an import of goods, other than an st di exempt import; or ed “taxable person” means a registered person or a person who is uc od required to be registered for value added tax under this Act; re pr “taxable supply” means- be (a) a supply, other than an exempt supply, that is made in ay m Mainland Tanzania by a taxable person in the course or ok bo furtherance of an economic activity carried out by that is th person; or of rt (b) a supply of imported services to a taxable person who pa o .N is the purchaser and acquires the services in the course d ve of an economic activity if had the supply been made in r se re Mainland Tanzania by a taxable person in the course of s ht furtherance of an economic activity- rig ll (i) it would have been taxable at a rate other than .A a ni zero; and za an (ii) the purchaser would not have been entitled to a fT to credit for ninety percent or more of the value added en m tax that would have been imposed on the supply; n er “telecommunication service” means a service of any ov G description provided by a company by means of any 25 20 transmission, emission or reception of signs, signals, © 303  THE VALUE ADDED TAX ACT [CAP. 148 R.E. 2023] writing, images and sounds or intelligible information of any nature, by wire, optical, visual or other electromagnetic means or systems, including- (a) voice, voice mail, data services, audio text services, video text services, radio paging and other emerging . AG O telecommunication services; of n (b) fixed telephone services including provision of io s is access to and use of the public switched or non- m er tp switched telephone network for the transmission ou and switching of voice, data and video, inbound and ith w outbound telephone service to and from national and ed ut rib international destinations; st di (c) cellular mobile telephone services including provision of or ed access to and use of switched or non-switched networks uc od for the transmission of voice, data, video and value added re pr services, inbound and outbound roaming services to be and from national and international destinations; ay m (d) carrier services including provision of wired, optical ok bo fibre or wireless facilities and any other technology is th to originate, terminate or transit calls, charging for of rt interconnection, settlement or termination of domestic pa o .N or international calls, charging for jointly used facilities d ve including pole attachments, charging for the exclusive r se re use of circuits, a leased circuit or a dedicated link s ht including a speech circuit, data circuit or a telegraph rig ll circuit; .A a ni (e) provision of call management services for a fee including za an call waiting, call forwarding, caller identification, fT to multi calling, call display, call return, call screen, call en m blocking, automatic call-back, call answer, voice mail, n er voice menus and video conferencing; ov G (f) private network services including provision of wired, 25 20 optical fibre, wireless or any other technologies of © electronic communication link between specified points for the exclusive use of the client; 304  THE VALUE ADDED TAX ACT [CAP. 148 R.E. 2023] (g) data transmission services including provision of access to wired or wireless facilities and services specifically designed for efficient transmission of data; and (h) communication through facsimile, pager, telegraph, . AG O telex and other telecommunication services; of n “telecommunication service provider” means a person io s is licensed by the Tanzania Communications Regulatory m er tp Authority or an equivalent foreign body to provide ou telecommunication services; ith w “time of supply” means- ed ut rib (a) in relation to a supply of goods, the time at which the st di goods are delivered or made available; or ed (b) in relation to a supply of services, the time at which the uc od services are rendered, provided or performed; or re pr (c) in relation to a supply of immovable property, the be earlier time at which the property is- ay m (i) created, transferred, assigned, granted or ok bo otherwise supplied to the customer; or is th (ii) delivered or made available; of rt “trust” means a person acting in the capacity of trustee or pa o .N trustees of a particular trust estate; d ve “trust estate” means property held by a person or persons r se re acting as trustee for a settlement, trust or estate; s ht “value added tax” means the tax imposed on taxable rig ll supplies or taxable imports, and includes an interest, fine .A a ni or penalty payable in accordance with the provisions of za an this Act; fT to “value added tax return” means a return that a taxable person en m is required to file with the Commissioner General, in which n er required information concerning that person, or other ov G person’s liability to pay tax under this Act, is provided; 25 20 “voucher” means a stamp, token, coupon or similar © article, including an article issued electronically, which can be redeemed by the holder for supplies of goods, 305  THE VALUE ADDED TAX ACT [CAP. 148 R.E. 2023] services, or immovable property, and includes a prepaid telecommunications product, and does not include a postage stamp; “Zanzibar input tax” in relation to a taxable person, means- (a) value added tax imposed under the value added tax law . AG O applicable in Tanzania Zanzibar on a taxable supply of n made to that taxable person; and io s is (b) value added tax imposed under the value added tax law m er tp applicable in Tanzania Zanzibar on a taxable import of ou goods by the person; and ith w “zero-rated” in relation to a supply or import, means- ed ut rib (a) a supply or import that is specified as zero-rated under st di this Act; or or ed (b) a supply of a right or option to receive a supply that uc od shall be zero-rated pursuant to the provisions of this re pr Act. be (2) For purposes of this Act, goods shall be classified ay m by reference to the tariff numbers set out in Annex 1 to the ok bo Protocol on the Establishment of the East African Community is th Customs Union and in interpreting that annex, the general of rt rules of interpretation set out therein, shall apply. pa o d .N ve PART II r se re IMPOSITION OF VALUE ADDED TAX s ht rig (a) Imposition and Exemptions ll .A a ni

3 — (1) Value added tax shall be imposed and payable on taxable

3.–(1) Value added tax shall be imposed and payable on taxable za Imposition of an value added tax supplies and taxable imports. fT Act No. to 3 of 2021 s. 73 (2) Where in respect of any taxable supply of goods, the tax en m has been paid in Tanzania Zanzibar pursuant to the law for n er ov the time being in force in Tanzania Zanzibar, at the same rate G 25 as the rate applicable in Mainland Tanzania, the tax shall be 20 © deemed to have been paid on the taxable supply in accordance with the provisions of this Act and no tax shall be payable on its transfer to Mainland Tanzania. 306  THE VALUE ADDED TAX ACT [CAP. 148 R.E. 2023] (3) Where in respect of any taxable supply of goods, the value added tax has been paid in Tanzania Zanzibar at the rate lower than the rate applicable in Mainland Tanzania under this Act, the difference in the value added tax shall be deemed to have not been paid and shall be collected by Tanzania Revenue . AG O Authority from the taxable person upon transfer of goods to of n Mainland Tanzania in accordance with the provisions of this io s is Act. m er tp (4) Where in respect of any taxable supply of goods, the ou supply is made directly by a taxable person in Mainland ith w Tanzania to a recipient who is taxable person in Tanzania ed ut rib Zanzibar, the Tanzania Revenue Authority shall collect the st di value added tax and remit it to the Zanzibar Revenue Board. or ed uc

4 — The following persons shall be liable to pay value added tax

4. The following persons shall be liable to pay value added tax- od Person liable to pay value added pr (a) in the case of a taxable import, the importer; re tax be (b) in the case of a taxable supply that is made in Mainland ay m Tanzania, the supplier; and ok bo (c) in the case of a taxable supply of imported services, the is th purchaser. of rt pa

5 — (1) The amount of value added tax payable shall be

5.–(1) The amount of value added tax payable shall be o Value added tax .N rate and amount d calculated by multiplying the value of the supply or import by ve payable r se Act No. the value added tax rate, which shall be eighteen percent. re 2 of 2016 s. 91 s (2) Where the supply or import is zero-rated, the value ht rig added tax rate shall be zero percent. ll .A (3) Where a supply is both exempt and zero-rated, the a ni za supply shall be zero-rated. an fT (4) Where the supply is both exempt and taxable at standard to en rate, the supply shall be taxable at standard rate as specified n m er under this section. ov G 25 20 © 307  THE VALUE ADDED TAX ACT [CAP. 148 R.E. 2023] Exemptions 6.–(1) Except as otherwise provided for in the provisions of and rates to be specified by law this Act or the Schedule- Acts Nos. (a) a supply, class of supplies, import, or class of import 9 of 2017 s. 34 4 of 2018 s. 67 shall not be exempt or zero-rated; and . AG 13 of 2019 s. 101 (b) a person or class of persons shall not be exempted O 3 of 2021 s. 74 of from paying value added tax imposed under this n 5 of 2022 s. 123 io Act. s 9 of 2022 s. 13 is m 7 of 2023 s. 64 (2) Notwithstanding the provisions of subsection (1), the er tp Minister shall, upon approval by the Cabinet and by order ou ith published in the Gazette, grant value added tax exemption w ed on goods or services for implementation of strategic ut rib investments or special strategic investments approved by the st di or National Investment Steering Committee under the Tanzania ed Investment Act. uc Cap. 38 od (3) Notwithstanding the provisions of subsection (1), the pr re Commissioner General may, upon application by an applicant be ay in the prescribed form, exempt value added tax on- m ok (a) importation of raw materials to be used solely in the bo is manufacture of long-lasting mosquito nets; th of (b) importation of raw materials of Heading 39.02 and rt pa 39.07 to be used solely in the manufacture of packaging o .N materials of pharmaceutical products; d ver (c) importation of pre-fabricated structures or supply of se re locally manufactured pre-fabricated structures of H.S s ht rig Code 9406.20.90 to be used solely in poultry farming; ll .A and a ni za (d) importation by or supply to a Government entity of an fT goods or services to be used solely for implementation to en of a project funded by- n m (i) the Government; er ov (ii) a concessional loan, non-concessional loan G 25 or grant through an agreement between the 20 © Government of the United Republic and another government, donor or lender of concessional loan or non-concessional loan; or 308  THE VALUE ADDED TAX ACT [CAP. 148 R.E. 2023] Cap. 134 (iii) a grant agreement duly approved by the Minister in accordance with the provisions of the Government Loans, Grants and Guarantees Act entered between local government authority and a donor: . AG O Provided that, such agreement provides for value added tax of n exemption on goods or services; io s is (e) importation or supply of goods or services for the relief m er tp of natural calamity or disaster; ou (f) importation by or supply of goods or services to an ith w entity having an agreement with the Government of the ed ut rib United Republic for purpose of operating or executing st di a strategic project: or ed Provided that, such agreement provides for value added tax uc od exemption on goods or services; re pr (g) an importation by or supply of goods or services to a be non-governmental organisation having an agreement ay m with the Government of the United Republic solely ok bo for project implemented by the respective non- is th governmental organisation: of rt Provided that, such agreement provides for value added tax pa o .N exemption on goods or services as duly approved by the Minister. d ve (4) The exemption granted under this section shall cease r se re to have effect and the value added tax shall become due and s ht payable as if the exemption have not been granted if the said rig ll goods or services are transferred, sold or otherwise disposed .A a ni of in any way to another person not entitled to enjoy similar za an privileges as conferred under this Act. fT to (5) The exemption issued by the Commissioner General en m under subsection (3) shall specify goods or services that are n er eligible for exemption, commencement and expiry date of the ov G exemption. 25 20 (6) The Minister may, for better carrying out of the © provisions of this section, make regulations prescribing the manner of application, granting and monitoring utilisation of exemption granted. 309  THE VALUE ADDED TAX ACT [CAP. 148 R.E. 2023] (7) In this section, “project funded by Government” means a project financed by the Government in respect of- (a) transport, water, gas or power infrastructure; (b) buildings for provision of health or education services to the public; or . AG O (c) a centre for persons with disabilities. of n (8) For purposes of this section, “applicant” means- io s is (a) a local manufacturer of long-lasting mosquito nets m er tp having a performance agreement with the Government ou of the United Republic; ith w (b) a local manufacturer of packaging materials of ed ut rib pharmaceutical products having a performance st di agreement with the Government of the United Republic; or ed (c) a person engaged in poultry farming in Mainland uc od Tanzania having a performance agreement with the re pr Government of the United Republic; and be (d) a Government entity; ay m (e) a local government authority; ok bo (f) non-governmental organisation; and is th (g) an entity having an agreement with the Government of rt of the United Republic for purpose of operating or pa o .N executing a strategic project. d ve (9) For the purpose of subsection (3)(d), a strategic project r se re shall be a project that has been so determined by the Cabinet. s ht rig

7 — Where, an agreement approved by the Minister is entered

7. Where, an agreement approved by the Minister is entered ll Treaties .A a Act No. into between the Government of the United Republic and an ni za 9 of 2017 s. 35 an Cap. 356 international agency listed under the Diplomatic and Consular fT Immunities and Privileges Act, and such agreement entitles a to en person to an exemption from tax on the person’s purchases or n m er imports, the exemption shall be effected under this Act by- ov G (a) exempting the import of goods imported by the person; 25 20 or © (b) refunding the value added tax payable on taxable supplies made to the person upon application by the person. 310  THE VALUE ADDED TAX ACT [CAP. 148 R.E. 2023] (b) Value Added Tax on Imports Payment and 8.–(1) The value added tax payable on a taxable import shall collection of value added tax on be paid- imports (a) where goods are entered for home consumption in . AG Act No. Mainland Tanzania, in accordance with the provisions O 1 of 2005 of of this Act and procedures applicable under the East n io African Customs Management Act; or s is m (b) in any other case, where goods are imported for use in er tp Mainland Tanzania, on the day the goods are brought ou ith into Mainland Tanzania and in the manner prescribed w ed by the regulations. ut rib (2) The liability to pay value added tax on a taxable import st di or shall arise by the operation of this Act and shall not depend on ed the making of an assessment by the Commissioner General of uc the amount of value added tax due. od pr re (3) The Commissioner General shall collect value added tax be ay due under this Act on a taxable import at the time of import. m ok (4) Unless a contrary intention appears- bo is Act No. (a) the provisions of the East African Customs Management th of 1 of 2005 Act shall, for the purposes of this Act, apply as if the value rt pa added tax payable on taxable imports were customs duty o .N payable under the East African Customs Management d ver Act; and se re (b) the terms used in this Act in respect of an import s Act No. ht rig 1 of 2005 of goods shall have the same meaning as in the East ll .A African Customs Management Act. a ni za an

9 — The value of an import of goods shall be the sum of

9. The value of an import of goods shall be the sum of- fT Value of import to Acts Nos. (a) the value of goods for the purposes of customs duty en 1 of 2005 m under the East African Customs Management Act, n 2 of 2016 s. 92 er ov whether or not duty is payable on the import; G 25 (b) the amount of any customs duty payable on the import; 20 © and 311  THE VALUE ADDED TAX ACT [CAP. 148 R.E. 2023] (c) the amount of any tax, levy, fee or fiscal charge other than customs duty and value added tax payable on the import of the goods. Value of returning 10. Where- . AG goods (a) goods are imported after having been exported for the O of purpose of undergoing repair, maintenance, cleaning, n io s is renovation, modification, treatment, or other physical m er process; and tp ou (b) the form or character of the goods has not been changed ith w since they were exported, ed ut the value of the import shall be such amount of the increase rib st in their value as is attributable to the repair, maintenance, di or cleaning, renovation, modification, treatment or other ed uc physical process. od pr re be Deferral of value 11.–(1) A registered person may, in the form and manner ay added tax on prescribed, apply to the Commissioner General for approval m ok imported capital to defer payment of value added tax on imported or locally bo goods is Acts Nos. manufactured capital goods. th 2 of 2016 s. 93 of Provided that, deferment on the imported capital goods rt 3 of 2021 s. 75 pa 5 of 2022 s. 124 shall cease to apply on the 30th day of June, 2026. o .N 7 of 2023 s. 65 d (2) The Commissioner General shall approve an application ver se under this section if satisfied that- re s (a) the person is carrying on an economic activity; ht rig (b) the person’s turnover is, or is expected to be made up of ll .A at least ninety percent of taxable supplies; a ni za (c) the person keeps proper records and files value added an fT tax returns; and complies with obligations under this to en Act and any other tax law; and n m er (d) there are no reasons to refuse the application in ov G accordance with subsection (3). 25 20 (3) The Commissioner General shall refuse an application © under this section if the applicant or a person connected to the applicant- 312  THE VALUE ADDED TAX ACT [CAP. 148 R.E. 2023] (a) has an outstanding liability or an outstanding return under any tax law; or (b) has been convicted in a court of law in the United Republic or elsewhere for an offence of evading payment of tax, custom duty or an offence relating to . AG O violation of trade laws or regulations. of n (4) The deferment granted under this Act shall cease to have io s is effect and the value added tax shall become due and payable m er tp as if the deferment had not been granted if the applicant fails ou to account for deferral of value added tax, the said goods ith w are transferred, sold or otherwise disposed off in any way ed ut rib to another person not entitled to enjoy similar privileges as st di conferred under this Act. or ed (5) The Commissioner General shall, within fourteen days uc od of receiving the application, notify the applicant of the decision re pr to approve or reject the application. be (6) Where the Commissioner General approves the ay m application, such application shall take effect on the date ok bo mentioned in the decision. is th (7) Where an application is rejected, the Commissioner of rt General shall state the reasons for such rejection, and afford the pa o .N applicant the right to object and appeal against the decision. d ve (8) The Commissioner General may revoke the approval r se re made under this section if- s ht (a) the person no longer meets the requirements for rig ll approval; or .A a ni (b) the person becomes liable to fines or penalties, or is za an prosecuted or convicted, under this Act or any other fT to tax law. en m (9) A person who is approved under this section shall n er treat tax payable on locally manufactured taxable supplies or ov G imports by the person as if it were output tax payable by the 25 20 person in the tax period in which the locally manufactured © goods were supplied or imported goods were entered for home consumption. 313  THE VALUE ADDED TAX ACT [CAP. 148 R.E. 2023] (10) For purposes of this section, “capital goods” means goods classifiable under Chapters 84, 85, and 90 of Annex 1 to the Protocol on the Establishment of the East African Community Customs Union and Heading 87.16 and HS Code 8701.20.90 locally manufactured or assembled in a customs . AG O bonded warehouse: of n Provided that, the goods are not purchased or imported for io s is the purpose of resale in the ordinary course of carrying on the m er tp person’s economic activity, whether or not in the form or state ou in which the goods were purchased or imported. ith w ed ut rib (c) Value Added Tax on Supplies st di

12 — (1) Anything capable of being supplied by any person

12.–(1) Anything capable of being supplied by any person or Subject matters ed and subcategories other than money shall be the subject matter of a supply. uc of supply od (2) For purposes of this Act, every supply that is, or capable pr re of being made shall be recognised as- be ay (a) a supply of goods; m ok (b) a supply of immovable property; or bo is (c) a supply of services. th of (3) For purposes of this Act, “a supply of goods” includes- rt pa (a) a sale, exchange or other transfer of the right to dispose o .N of goods as owner, including under a hire purchase d ver agreement; and se re (b) a lease, hire or other right of use granted in relation s ht rig to goods including a supply of goods under a finance ll .A lease. a ni za an

13 — (1) For purposes of this Act, “consideration” as used in

13.–(1) For purposes of this Act, “consideration” as used in fT Consideration of to supply relation to a supply, means the sum of the following amounts- en m (a) the amount in money paid or payable by any person, n er ov whether directly or indirectly, in respect of, in response G 25 to, or for the inducement of the supply; and 20 © (b) the fair market value of anything paid or payable in kind, whether directly or indirectly, by any person in respect of, in response to, or for the inducement of the supply. 314  THE VALUE ADDED TAX ACT [CAP. 148 R.E. 2023] (2) Without limiting the scope of subsection (1), the consideration for a supply includes- (a) any duty, levy, fee, charge, or tax including value added tax imposed under this Act that- (i) is payable by the supplier on, or by reason of, the . AG O supply; and of n (ii) is included in or added to the amount charged to io s is the customer; m er tp (b) any amount charged to the customer that is calculated ou or expressed by reference to costs incurred by the ith w supplier; ed ut rib (c) any service charge that is automatically added to the st di price of the supply; and or ed (d) any amount expressed to be a deposit paid when goods uc od are sold in a returnable container and which may be re pr refunded on the return of the container. be (3) The consideration for a supply shall not include a price ay m discount or rebate allowed and accounted for at the time of the ok bo supply. is th (4) An exact reimbursement of costs incurred by agent for of rt the payer shall not form part of the consideration for the supply pa o .N made by the agent to the person paying the reimbursement. d ver se

14 — Where a supply consists of more than one element, the

14. Where a supply consists of more than one element, the re Single and s multiple supplies ht following criteria shall be taken into account when determining rig how this Act applies to the supply- ll a .A (a) every supply shall normally be regarded as distinct and ni za an independent; fT (b) a supply that constitutes a single supply from an to en economic, commercial, or technical point of view, shall n m er not be artificially split; ov G (c) the essential features of the transaction shall be 25 20 ascertained in order to determine whether the customer © is being supplied with several distinct principal supplies or with a single supply; 315  THE VALUE ADDED TAX ACT [CAP. 148 R.E. 2023] (d) there is a single supply, if one or more elements constitute the principal supply, in which case the other elements are ancillary or incidental supplies, which are treated as part of the principal supply; or (e) a supply shall be regarded as ancillary or incidental to a . AG O principal supply if it does not constitute for customers of n an aim in itself but is merely a means of better enjoying io s is the principal thing supplied. m er tp ou When value 15. The value added tax imposed on a taxable supply shall ith w added tax become payable at the earlier of- ed becomes payable ut (a) the time when the invoice for the supply is issued by rib st the supplier; di or (b) the time when the consideration for the supply is ed uc received, in whole or in part; or od pr (c) the time of supply. re be ay

16 — (1) Notwithstanding the requirement of section 15

16.–(1) Notwithstanding the requirement of section 15- m Exception for ok progressive, (a) where a progressive or periodic supply is treated as bo lay-by sale, and is a series of separate supplies in accordance with the th vending machine of provision of section 19, any value added tax imposed rt pa on each supply shall become payable- o d .N (i) if the supplier issues a separate invoice for the ver se supply, at the time when the invoice is issued; re s (ii) at the time when any part of the consideration for ht rig the supply is paid; ll .A (iii) at the time when the payment of the consideration a ni za for the supply is due; or an fT (iv) if the supplier and customer are connected persons- to en (aa) for a periodic supply, on the first day of the n m period to which the supply relates; or er ov (bb) for a progressive supply, at the time of supply; G 25 (b) where a taxable supply of goods is made under a lay-by 20 © agreement, the value added tax imposed on the supply becomes payable at each time when any part of the consideration is paid for the supply; and 316  THE VALUE ADDED TAX ACT [CAP. 148 R.E. 2023] (i) the amount of value added tax that becomes payable at such time is the tax fraction of the amount paid; and (ii) where a taxable supply is made through a vending machine, meter, or other automatic device not . AG O including a pay telephone that is operated by a of n coin, note, or token, the value added tax becomes io s is payable when the coin, note, or token is taken m er tp from the machine, meter, or other device by or on ou behalf of the supplier. ith w (2) For purposes of subsection (1), “lay-by agreement” ed ut rib means an agreement for the sale and purchase by which- st di (a) the price is payable by at least one additional payment or ed after the payment of a deposit; uc od (b) delivery of the goods takes place at a time after payment re pr of the deposit; and be (c) ownership of the goods is transferred by delivery. ay m (3) The Minister may make regulations prescribing for the ok bo value added tax to become payable under this section for- is th (a) a taxable supply that is subject to a statutory cooling off of rt period under any other laws; pa o .N (b) a taxable supply that occurs before the total d ve consideration for the supply is certain; r se re (c) a taxable supply made under an agreement that provides s ht for retention of some or all of the consideration until rig ll certain conditions are met; or .A a ni (d) a taxable supply for which the correct value added tax za an treatment is not known until a later time. fT to en

17 — (1) The value of a taxable supply which is made in Mainland

17.–(1) The value of a taxable supply which is made in Mainland m Value of taxable n er supply Tanzania shall be the consideration for the supply reduced by ov G an amount equal to the tax fraction of that consideration. 25 20 (2) The value of a taxable supply of imported services shall © be the consideration for the supply. (3) The value of a supply that is not a taxable supply shall be the consideration for the supply. 317  THE VALUE ADDED TAX ACT [CAP. 148 R.E. 2023] (4) The value of a supply made without payment of consideration shall be a fair market value. Exception for 18. Where a taxable person makes a taxable supply to a connected supplies to person, and the supply is made for no consideration, or for a . AG connected person consideration that is lower than the fair market value of the O of supply, the value of the supply shall be the fair market value of n io s is the supply reduced by the tax fraction of that fair market value. m er tp ou Progressive or 19.–(1) Each part of a progressive or periodic supply shall be ith periodic supply w treated as a separate supply. ed ut (2) Where the progressive or periodic parts of a progressive rib st or periodic supply are not readily identifiable, the supply shall di or be treated as a series of separate supplies each corresponding ed uc to the proportion of the supply to which each separate part of od pr the consideration relates. re be (3) For purposes of determining the time of supply for each ay part of a lease or other supply of a right to use property, the m ok supply shall be treated as being made continuously over the bo is period of the lease or right of use. th of rt pa Sale of economic 20.–(1) An economic activity shall be sold as a going concern o .N activity where- d ver (a) everything necessary for the continued operation of the se re economic activity is supplied to the person to whom s ht rig the economic activity is sold; and ll .A (b) the purchaser makes the acquisition in the course of or a ni za for the purposes of, an economic activity it carries on an fT after the sale. to en (2) Without prejudice to the provision of subsection (1), n m part of an economic activity shall be an economic activity if it er ov is capable of being operated separately. G 25 (3) Where a taxable person makes supplies in Mainland 20 © Tanzania as a part of a transaction for the sale of an economic activity as a going concern by that taxable person to another taxable person- (a) the supplies shall be treated as a single supply that is made in Mainland Tanzania; and 318  THE VALUE ADDED TAX ACT [CAP. 148 R.E. 2023] (b) the single supply shall be treated as if it were not a supply. (4) For purposes of working out the supplier’s entitlement to input tax credits in relation to a transaction to which subsection (3) applies- . AG O (a) any input tax incurred in acquiring goods or services of n for the purposes of the transaction shall- io s is (i) where the supplier otherwise only makes taxable m er tp supplies be treated as relating to those supplies; ou and ith w (ii) in any other case, be calculated in accordance with ed ut rib partial input tax credit formula; and st di (b) the value of the single supply of the going concern shall or ed not be included in any calculations made under section uc od 73. re pr be Tax treatment on 21.–(1) Where- ay m rights, vouchers (a) a supply of a right, option or voucher is a taxable supply; ok and options bo and is th (b) a subsequent supply is made on the exercise of the of rt right, option, or in return for a voucher given in full or pa o part payment for the subsequent supply, d .N the consideration for the subsequent supply is limited to any ve r se additional consideration given for the subsequent supply or re s ht in connection with the exercise of the right or option. rig (2) Where- ll a.A (a) a supply of a right, option, or voucher was not a taxable ni za an supply; fT (b) a subsequent supply is made on the exercise of the right to en or option, or in return for a voucher given in full or n m er part payment for the subsequent supply; and ov G (c) the subsequent supply is a taxable supply, 25 20 the consideration for the subsequent supply shall include any © consideration given for the supply of the right, option, or voucher. (3) For purposes of this Act, supply of voucher shall be treated as a supply of services. 319  THE VALUE ADDED TAX ACT [CAP. 148 R.E. 2023] Reimbursements 22. Where- of rights, vouchers and (a) a taxable supply is made on the exercise of a right or options option, or in return for a voucher that is given in full or part payment for the subsequent supply; and (b) the taxable person making that supply receives or will . AG O receive a payment from another person in respect of of n the exercise of the right or option or the acceptance of io s is the voucher, or because of the making of the supply, m er tp the taxable person shall be treated as having made a taxable ou supply to the payer and the amount received shall be treated ith w as consideration for that supply. ed ut rib st

23 — (1) The Minister may prescribe any kind of documentary

23.–(1) The Minister may prescribe any kind of documentary di Input tax credits or of right, vouchers evidence which, in lieu of a tax invoice, the taxable person shall ed and options uc hold in support of the input tax credit to which the person may od pr be entitled in relation to the acquisition of a voucher or of a re be subsequent supply in return of the voucher. ay m (2) In the absence of such regulations any document from ok bo which the underlying tax burden can reasonably be calculated is th may be used in support of the input tax credit. of rt pa

24 — (1) This section shall

24.–(1) This section shall- o Pre-payments for .N telecommunica- d (a) apply to a supply, by a telecommunications service ve tion services r se provider, of a prepaid telecommunications product; re s (b) apply to a supply by a person who acts as a distributor, ht rig agent, or telecommunications intermediary in relation ll .A to the supply of a prepaid telecommunications a ni za product; and an fT (c) not apply to a supply by one telecommunications to en service provider to another. n m er (2) Where a telecommunications service provider ov G supplies a prepaid telecommunications product to a 25 20 telecommunications intermediary at a discount from the © intended retail price, the consideration for the supply shall be calculated as if the intermediary had paid the intended retail price. 320  THE VALUE ADDED TAX ACT [CAP. 148 R.E. 2023] (3) Where a telecommunications intermediary purchases and on-sells a prepaid telecommunications product- (a) the acquisition by the intermediary shall be treated as if it were not an acquisition; and (b) the supply by the intermediary shall be treated as if it . AG O were not a supply. of n (4) Where a telecommunication service provider io s is supplies a prepaid telecommunications product through a m er tp telecommunications intermediary acting as agent for the ou telecommunications provider, the consideration for the supply ith w is not reduced by the commission paid to the intermediary. ed ut rib st

25 — Where a taxable person is an employer and makes a taxable

25. Where a taxable person is an employer and makes a taxable di In kind employee or benefits supply to an employee as part of the employee’s salary or ed uc because of the employment relationship, the supply shall be od pr treated as having been made for consideration equal to the fair re be market value of the supply. ay m ok

26 — (1) Where a supply, or an agreement for a supply, is

26.–(1) Where a supply, or an agreement for a supply, is bo Cancelled is transactions cancelled and part of the consideration previously paid is th of retained by the supplier, any adjustments allowed or required rt pa under section 74 because of the cancellation, shall be reduced o d .N to take account of the amount retained. ve r se (2) Where a supply or an agreement for a supply is cancelled re s and the supplier recovers an amount from the customer as a ht rig consequence of the cancellation, the amount recovered shall ll .A be treated as consideration received for a supply made in the a ni za tax period when the amount is recovered. an fT (3) The provisions of subsections (1) and (2) shall apply to en whether or not the cancellation has the effect that no supply n m er is made, and any references to supplier and customer in those ov G subsections shall be treated as referring to the persons who 25 20 would have been the supplier and customer had the transaction © not been cancelled. 321  THE VALUE ADDED TAX ACT [CAP. 148 R.E. 2023] Sale of property 27.–(1) Where a creditor supplies the property of a debtor to a of debtor third person in full or partial satisfaction of a debt owed by the debtor to the creditor- (a) the supply to the third person shall be treated as having been made by the debtor and its value added tax status . AG O shall be determined accordingly; and of n (b) the creditor shall be liable to pay the value added tax, io s is on the supply and that value added tax shall be payable m er tp in priority to- ou (i) the satisfaction of the debt; and ith w (ii) the return to the debtor or any other person of any ed ut rib part of the proceeds that is surplus to the debt. st di (2) A creditor who is not a registered person but is required or ed to pay value added tax by operation of subsection (1), shall pay uc od value added tax at such time and manner as may be prescribed re pr in the regulations. be (3) This section shall apply to a representative acting for a ay m creditor under section 95. ok bo is th PART III of rt pa REGISTRATION o d .N ve

28 — (1) A person shall, in respect of any month, be registered

28.–(1) A person shall, in respect of any month, be registered r Registration se re requirement for value added tax from the first day of that month, if there s ht rig is reasonable ground to expect that the person’s turnover in ll .A the twelve months period commencing at the beginning of the a ni previous month will be equal to or greater than the registration za an threshold. fT to (2) A person is required, in respect of any month, to be en m registered for value added tax from the first day of that month n er ov if- G 25 (a) the person’s turnover is equal to or greater than the 20 © registration threshold in the period of twelve months ending at the end of the previous month; or (b) the person’s turnover is equal to or greater than one half of the registration threshold in the period of six months ending at the end of the previous month. 322  THE VALUE ADDED TAX ACT [CAP. 148 R.E. 2023] (3) The provisions of subsection (2) shall not apply to a person where the Commissioner General is satisfied, on the basis of objective evidence submitted to the Commissioner General, that the requirements of subsection (1) are not met. (4) The amount of registration threshold shall be as . AG O prescribed in the regulations. of n (5) For purposes of this Part, a person’s turnover shall be io s is the sum of- m er tp (a) total value of supplies made, or to be made, by the ou person in the course of an economic activity carried ith w out during that period; and ed ut rib (b) total value of supplies of imported services made, or to st di be made, to the person during the period that would or ed be taxable supplies if the person was a taxable person uc od during that period. re pr (6) The following amounts shall be excluded when be calculating the person’s turnover for the purpose of this Part- ay m (a) the value of a supply that would not be a taxable supply ok bo if the person were a taxable person; is th (b) the value of a sale of a capital asset of the person; of rt (c) the value of a supply made solely as a consequence of pa o .N selling an economic activity or part of that economic d ve activity as a going concern; and r se re (d) the value of supplies made solely as a consequence of s ht permanently ceasing to carry on an economic activity. rig ll .A a

29 — (1) Notwithstanding the provisions of section 28, a person

29.–(1) Notwithstanding the provisions of section 28, a person ni Other persons za required to be an shall be required to be registered for value added tax if- fT registered (a) the person carries on an economic activity involving the to en supply of professional services in Mainland Tanzania, n m er whether those professional services are provided by the ov G person, a member or employee of that person; and 25 20 (b) supplies of such services in Mainland Tanzania are © ordinarily made by a person who- (i) is permitted, approved, licensed or registered to provide such professional services under any other written laws; or 323  THE VALUE ADDED TAX ACT [CAP. 148 R.E. 2023] (ii) belongs to a professional association that has uniform national registration requirements relating to the supply of professional services of that kind. (2) A Government entity or institution which carries on . AG O economic activity shall be required to be registered for value of n added tax. io s is (3) Notwithstanding the provisions of section 28, the m er tp Commissioner General may register a taxable person as ou intending trader upon fulfilling the following conditions- ith w (a) provide sufficient evidence to satisfy the Commissioner ed ut rib of his intention to commence an economic activity, st di including contracts, tenders, building plans, business or ed plans, bank financing; uc od (b) the person makes or will make supplies that will be re pr taxable supplies if the person is registered; and be (c) specify the period within which the intended economic ay m activity commences production of taxable supplies. ok bo is th Time of 30.–(1) A person who is required to be registered for value of application for rt added tax shall within thirty days from the date of such pa registration o requirement, make application for registration to the d .N Commissioner General. ver se (2) An application for registration of an intending trader re s ht may be made at any time. rig (3) An application for registration under this section may ll .A a be made by a representative. ni za an fT Mode of 31. The Minister may prescribe in the regulations the manner to en application of making applications for registration. n m er ov

32 — (1) Where the Commissioner General is satisfied that

32.–(1) Where the Commissioner General is satisfied that G Processing of 25 application an applicant qualifies for registration for value added tax, the 20 © Commissioner General shall register such person. (2) The Commissioner General shall, by notice in writing, notify the applicant for registration of the decision within fourteen days of the application. 324  THE VALUE ADDED TAX ACT [CAP. 148 R.E. 2023] (3) The notice referred to under subsection (2) shall state if the Commissioner General- (a) registers the person, the day on which the registration takes effect; or (b) rejects the application, the reasons for the decision and . AG O the details of the person’s rights to object and appeal of n against the decision, including the time, place, and io s is manner of filing a notice of objection. m er tp (4) The Commissioner General shall issue a registration ou certificate to the registered person. ith w ed ut

33 — Where the Commissioner General is satisfied that

33. Where the Commissioner General is satisfied that- rib Compulsory st registration (a) a person is required to be registered for value added tax di or and that person has not applied for registration, subject ed uc to section 30, the Commissioner General shall register od pr the person and, not later than fourteen days after the re be day on which the registration is done, notify the person ay m on the registration; or ok bo (b) there is good reason including protection of is th Government revenue, of rt may register the person for value added tax regardless of the pa o person’s turnover. d .N ver se Effect of failure 34. Where the Commissioner General fails to process the re to process s application by a person who has applied for registration within ht application rig the time required, the provisions of this Act shall not apply to ll .A such person until the person is duly registered. a ni za an fT Taxpayer 35. A registered person shall use a Taxpayer Identification to Identification en Number and a Value Added Tax Registration Number on all m Number and n documents required to be issued under this Act. er Value Added ov Tax Registration G Number 25 20 © Registration to 36. The registration by a person under this Act shall be a cover branches or divisions single registration, which shall cover all economic activities undertaken by that person’s branches or divisions. 325  THE VALUE ADDED TAX ACT [CAP. 148 R.E. 2023] Notification of 37. A registered person shall notify the Commissioner changes General in writing within fourteen days of the occurrence of the following changes- (a) the name of the registered person, business name, or trading name of the person; . AG O (b) the address or other contact details of that person; of n (c) one or more places through which the person carries io s is on an economic activity in Mainland Tanzania; m er tp (d) the nature of one or more of the economic activities ou carried on by the person; ith w (e) the person’s status as a registered person; and ed ut rib (f) any other changes as prescribed in the regulations. st di or

38 — (1) A price advertised or quoted by a registered person in

38.–(1) A price advertised or quoted by a registered person in ed Transparency in uc pricing respect of a taxable supply shall be value added tax inclusive, od pr and the advertisement or quote shall state that the price re be includes both value added tax and the amount of value added ay m tax payable on the supply, except that the prices of goods or ok bo services offered for retail supply need not separately state the is th value added tax included in the price if- of rt (a) a notice stating that prices include value added tax is pa o prominently displayed- d .N (i) at or near the entrance to the premises, or on the ver se website, where the goods or services are offered re s ht for supply; and rig (ii) at the place or webpage where payments are ll .A a effected; and ni za an (b) the receipt or invoice given to the customer separately fT states the total amount of value added tax charged for to en supplies to which it refers and, if applicable, identify n m er which items are subject to value added tax. ov G (2) The Minister may make regulations prescribing any other 25 20 method of displaying prices for taxable supplies in relation to © a registered person or a class of registered persons, except that the method involving value added tax exclusive pricing may be prescribed only for supplies to registered persons. 326  THE VALUE ADDED TAX ACT [CAP. 148 R.E. 2023] (3) The price charged by a taxable person for a taxable supply shall be considered to include any value added tax that is payable on the supply, whether or not the person is registered or he separately states that value added tax is charged or took liability to pay value added tax into account when setting the . AG O price. of n io s

39 — (1) A registered person who permanently ceases to

39.–(1) A registered person who permanently ceases to is Application for m er cancellation of make taxable supplies shall apply for the cancellation of its tp registration ou registration in the manner prescribed in the regulations. ith w (2) The application referred to under subsection (1) shall be ed ut made within fourteen days after the date on which the person rib st permanently ceased to make taxable supplies. di or (3) A registered person who fails to maintain the registration ed uc threshold may apply for the cancellation of his registration in od pr the manner prescribed in the regulations. re be ay

40 — Where the Commissioner General is satisfied that a person

40. Where the Commissioner General is satisfied that a person m Decision on ok application for applying for cancelation of registration is not required to bo cancelation of is be registered for value added tax and such person has been th registration of registered for- rt pa (a) at least twelve months, the Commissioner General shall, o d .N by notice in writing, cancel the person’s registration; or ver se (b) less than twelve months, the Commissioner General re s may, by notice in writing, cancel the person’s ht rig registration, where satisfied that, it is appropriate to do ll .A so. a ni za an fT Power to cancel 41.–(1) The Commissioner General may, by notice, cancel to registration en the registration of a person who is no longer required to be n m registered for value added tax, where the Commissioner er ov General is satisfied that - G 25 (a) the person obtained registration by providing false or 20 © misleading information; (b) the person is not carrying on an economic activity; 327  THE VALUE ADDED TAX ACT [CAP. 148 R.E. 2023] (c) the person has ceased to produce taxable supplies; or (d) the person’s taxable turnover falls below registration threshold. (2) The cancellation of a person’s registration shall take effect from the date set out in the notice of cancellation. . AG O of

42 — A person whose registration is cancelled shall

42. A person whose registration is cancelled shall- n Persons whose io s registration is is (a) immediately cease to be a registered person; m cancelled er (b) immediately cease to use or issue any documents tp ou including tax invoices and adjustment notes that ith w identify him as a registered person and surrender value ed ut added tax registration certificate; and rib st (c) within thirty days after the date of cancellation of his di or registration, file a final value added tax return and pay ed uc all taxes due under this Act. od pr re be List of registered 43.–(1) The Commissioner General shall maintain and publish ay persons an up to date register of registered persons, which shall include- m ok (a) the name and address of the registered person; bo is (b) the business or trading name or names, under which th of the registered person carries on its economic activities; rt pa (c) the Taxpayer Identification Number and Value Added o d .N Tax Registration Number of the registered person; and ver se (d) the date on which the registration took effect. re s (2) The Commissioner General shall maintain a complete ht rig historical record of the register identifying the person ll .A registered for value added tax and shall, on the request, make a ni za the record available to members of the public or by including an fT the historical information on the published register. to en n m PART IV er ov G PLACE OF TAXATION 25 20 © (a) Supplies of Goods and Services Made in Mainland Tanzania Supplies of goods 44.–(1) A supply of goods shall be treated as a supply made in Mainland Tanzania, if the goods are delivered or made available in Mainland Tanzania. 328  THE VALUE ADDED TAX ACT [CAP. 148 R.E. 2023] (2) For purposes of subsection (1), goods supplied after they are imported into Mainland Tanzania but before they are entered for home consumption in Mainland Tanzania shall be treated as having been delivered or made available outside Mainland Tanzania. . AG O of

45 — (1) Goods installed or assembled in Mainland Tanzania

45.–(1) Goods installed or assembled in Mainland Tanzania n Inbound and io s outbound goods is by, or under a contract with the supplier shall be treated as a m er supply made in Mainland Tanzania. tp ou (2) A supply of goods shall be treated as a supply made in ith w Mainland Tanzania if the goods are dispatched or transported ed ut from Mainland Tanzania to a place outside the United Republic. rib st di or Supplies relating 46.–(1) A supply of immovable property situated in Mainland ed uc to immovable Tanzania or a supply of services directly related to land situated od property pr in Mainland Tanzania shall be treated as a supply made in re be Mainland Tanzania. ay (2) A supply of service directly related to immovable m ok property shall be treated as a supply made in Mainland bo is Tanzania where- th of (a) the land to which the property relates is not situated in rt pa Mainland Tanzania; and o d .N (b) the supplier is- ver se (i) a resident of Mainland Tanzania; or re s (ii) a non-resident who carries on an economic ht rig activity at or through a fixed place in Mainland ll .A Tanzania. a ni za an fT Supply of services 47. A supply of services directly related to land situated to directly related en outside Mainland Tanzania shall be treated as a supply made m to land n in Mainland Tanzania if the supplier is a non-resident who is er ov operating through a fixed place in Mainland Tanzania. G 25 20 © Supply of 48. Where water, gas, oil, electricity, or thermal energy is essential services supplied through a pipeline, cable, or other continuous distribution network and delivered to a place in Mainland 329  THE VALUE ADDED TAX ACT [CAP. 148 R.E. 2023] Tanzania or from a place in Mainland Tanzania to a place outside the United Republic such supply shall be treated as a supply made in Mainland Tanzania. Services supplied 49.–(1) A supply of services by a non-resident who is a . AG to registered registered person to a customer who is a registered person O person of shall be treated as a supply made in Mainland Tanzania. n io s is (2) Subsection (1) shall not apply if the customer is a non- m er resident who carries on an economic activity at or through tp ou a fixed place outside Mainland Tanzania and the supply is ith w made- ed ut (a) for the purpose of that economic activity; or rib st (b) to that fixed place. di or

50 — (1) A supply of telecommunication services shall be

50.–(1) A supply of telecommunication services shall be ed Telecommunica- uc tion services treated as a supply made in Mainland Tanzania, if a person in od pr Mainland Tanzania, other than a telecommunications service re be provider, initiates the supply from a telecommunications ay m service provider, whether or not the person initiates the supply ok bo on his own behalf. is th (2) For purposes of subsection (1), a person who initiates a of rt supply of telecommunication services is the person who- pa o (a) controls the commencement of the supply; d .N (b) pays for the supply; or ver se (c) contracts for the supply. re s ht (3) Where it is impractical for the supplier to determine rig the location of a person referred to in subsection (2) due to ll a .A the type of service or the class of customer, the person who ni za an initiates the supply of telecommunication service shall be the fT person to whom the invoice for the supply is sent. to en (4) This section shall not apply if the person who initiates n m er the call in Mainland Tanzania is a non-resident who is ov G global roaming while in Mainland Tanzania and who pays 25 20 for the supply under a contract made with a non-resident © telecommunications service provider, through a place outside the United Republic at which the non-resident is established. 330  THE VALUE ADDED TAX ACT [CAP. 148 R.E. 2023] Services supplied 51.–(1) A supply of any of the following services shall be to unregistered person in treated as a supply made in Mainland Tanzania when supplied Mainland to a customer who is not a registered person- Tanzania Act No. (a) services performed in Mainland Tanzania, if the services are received by a person in Mainland Tanzania . AG 7 of 2023 s. 66 O who effectively uses or enjoys the services in Mainland of n Tanzania; io s is (b) services received for radio or television broadcasting at m er tp an address in Mainland Tanzania; and ou (c) electronic services delivered to a person who is in ith w Mainland Tanzania at the time when the service is ed ut rib delivered. st di (2) For purposes of this section “electronic services” means or ed any of the following services provided or delivered through a uc od telecommunications network- re pr (a) websites, web-hosting, or remote maintenance of be programmes and equipment; ay m (b) software and the updating thereof; ok bo (c) images, text, and information; is th (d) access to databases; of rt (e) self-education packages; pa o .N (f) music, films, and games, including gaming activities; d ve (g) political, cultural, artistic, sporting, scientific and other r se re broadcasts and events including broadcast television; s ht (h) online intermediation services; and rig ll (i) online advertisement services. .A a ni za

52 — (1) Any other supply of services shall be treated as a supply

52.–(1) Any other supply of services shall be treated as a supply an Other services fT supplied to made in Mainland Tanzania, where- to unregistered en (a) the customer is a resident of Mainland Tanzania and is m person within n er Mainland not a registered person; and ov Tanzania G (b) the supplier is- 25 20 (i) a resident of Mainland Tanzania; or © (ii) a non-resident who carries on an economic activity at or through a fixed place in Mainland Tanzania; and 331  THE VALUE ADDED TAX ACT [CAP. 148 R.E. 2023] (c) the supply is made in the course of that economic activity or through that fixed place. (2) A supply of services shall be treated as a supply made in Mainland Tanzania, if it is not treated as a supply made in- (a) Mainland Tanzania in accordance with section 51; and . AG O (b) the supplier is- of n (i) a resident of Mainland Tanzania; or io s is (ii) a non-resident and carries on an economic activity m er tp at or through a fixed place in Mainland Tanzania. ou ith w

53 — Where a progressive or periodic supply is a series of

53. Where a progressive or periodic supply is a series of ed Progressive or ut periodic supplies separate supplies, the place where each supply takes place shall rib st be determined separately. di or ed uc (b) Supplies for Use Outside the United Republic od pr re Zero-rating 54. A supply of immovable property shall be zero-rated if be of immovable ay the land to which the property relates is outside the United m property ok Republic. bo is th Zero-rating of 55.–(1) A supply of goods shall be zero-rated if the goods are of rt supply of goods exported within the meaning of the term “export” as provided pa o .N for under section 2. d ve (2) A supply of goods shall be zero-rated if the goods are r se supplied to a tourist or visitor by a licensed duty-free vendor re s ht who holds documentary evidence, collected at the time of the rig ll supply, and establishing that the goods shall be removed from .A a ni the United Republic without being effectively used or enjoyed za an in the United Republic. fT to (3) Subsection (1) shall not apply where the goods are en m re-imported in Mainland Tanzania. n er ov G Zero-rating of 56. A supply of locally manufactured fertiliser shall be zero- 25 20 fertiliser rated from 7th October, 2022 up to 30th June, 2024. © Acts Nos. 20 of 2016 s. 94 [s. 55A] 3 of 2021 s. 76 9 of 2022 s. 14 7 of 2023 s. 67 332  THE VALUE ADDED TAX ACT [CAP. 148 R.E. 2023] Zero-rating of 57. A supply of locally manufactured garments made from cotton garments locally grown cotton shall be zero rated from 1st July, 2023 up to 30th June, 2024. Leased goods 58.–(1) Where goods are supplied in Mainland Tanzania by . AG used outside way of lease, hire, licence, or similar supply, the supply shall be O United Republic of zero-rated if and to the extent that the goods are used outside n io s is the United Republic. m er (2) The following conditions shall apply for the purposes of tp ou subsection (1)- ith w (a) the use of leased goods in international territory shall ed ut be treated as a use wholly within the United Republic if rib st immediately before that use the goods are used in the di or United Republic; and ed uc (b) the supply shall not be zero-rated if the goods are a means od pr of transport and the total period of the lease, hire, licence, re be or similar supply is equal to or less than thirty days. ay m [s. 56] ok bo is

59 — A supply of goods made in the course of repairing,

59. A supply of goods made in the course of repairing, th Goods used to of repair temporary maintaining, cleaning, renovating, modifying, treating, or rt pa imports otherwise physically affecting temporary import goods shall o d .N be zero-rated where- ve r se (a) the goods being supplied are attached to or become part re s of those temporary import goods, or become unusable ht rig or worthless as a direct result of being used to repair, ll .A maintain, clean, renovate, modify, treat, or otherwise a ni za physically affect the temporary import goods; and an fT (b) the temporary import goods- to en Act No. (i) are imported under a special regime for temporary n m 1 of 2005 er imports under the East African Customs ov G Management Act, or brought temporarily into 25 20 Mainland Tanzania for the purpose of the © performance of the services; (ii) are removed from the United Republic after the services have been performed; and 333  THE VALUE ADDED TAX ACT [CAP. 148 R.E. 2023] (iii) are not used in Mainland Tanzania for any purpose other than to enable the services to be performed or to enable the temporary import goods to be brought into Mainland Tanzania, or outside the United Republic. . AG O [s. 57] of n io s

60 — A supply of goods or services shall be zero-rated, if it relates

60. A supply of goods or services shall be zero-rated, if it relates is Supply of goods m er and services to to the repair or replacement of goods under warranty, and- tp non-resident ou warrantor (a) the supply is provided under an agreement with, and ith w for consideration given by, the warrantor, who is a non- ed ut resident and is not a registered person; and rib st (b) it is reasonable to presume that the goods under di or warranty were under this Act previously subject to ed uc value added tax when imported, unless no value added od pr tax was payable. re be [s. 58] ay m ok

61 — (1) A supply of goods for use in repairing, maintaining,

61.–(1) A supply of goods for use in repairing, maintaining, bo Goods for use is in international cleaning, renovating, modifying, treating, or otherwise th transport services of physically affecting an aircraft or ship engaged in international rt Acts Nos. pa 4 of 2017 s.67 transport services shall be zero-rated. o .N 8 of 2020 s. 80 d 3 of 2021 s. 77 (2) A supply of aircraft’s stores or ship’s stores, for an ver se aircraft or ship shall be zero-rated, if the stores are used for re s consumption or sale on the aircraft or ship during a flight or ht rig voyage that constitutes international transport services. ll .A (3) The following supplies of services shall be zero-rated- a ni za (a) a supply of international transport services; an fT (b) a supply of insuring the international transport services to en of goods; n m er (c) a supply of the services of repairing, maintaining, ov G cleaning, renovating, modifying, treating, or otherwise 25 20 physically affecting an aircraft or ship engaged in © international transport services; (d) a supply, to a non-resident who is not a registered person, of services that- 334  THE VALUE ADDED TAX ACT [CAP. 148 R.E. 2023] (i) consist of the handling, pilotage, salvage, or towage of a ship or aircraft engaged in international transport services; or (ii) are provided directly in connection with the operation or management of a ship or aircraft . AG O engaged in international transport services; and of n (e) a supply of ancillary transport services of goods in io s is transit through Mainland Tanzania in circumstances m er tp where the services are- ou (i) an integral part of the supply of an international ith w transport services; and ed ut rib Act No. (ii) in respect of goods stored at the port, airport, or a st di 1 of 2005 declared customs area for not more than thirty days or ed or for such further period as the Commissioner uc od for Customs may authorise pursuant to the East re pr African Community Customs Management Act be while awaiting onward transport. ay m (f) a supply of transportation and incidental services to an ok bo international pipeline. is th (4) For purposes of this section- of rt “aircraft’s stores” means stores for the use of the passengers pa o .N or crew of an aircraft, or for the service of an aircraft; d ve “ship’s stores” means stores for the use of the passengers, r se re crew of a ship, or for the service of a ship; s ht “stores” in relation to aircraft’s stores and ship’s stores, rig ll includes goods for use in the aircraft or ship, fuel, and a .A ni spare parts, and other articles or equipment, whether or za an not for immediate fitting; and fT to “international pipeline” means a cross border pipeline for en m transportation of crude oil from a foreign country to a n er port facility in the United Republic in which such crude ov G oil is exported to another foreign country. 25 20 [s. 59] © Services supplied 62.–(1) A supply of services directly related to land outside the for use outside United Republic United Republic shall be zero-rated. 335  THE VALUE ADDED TAX ACT [CAP. 148 R.E. 2023] (2) A supply of services physically performed on goods situated outside the United Republic at the time the services are performed shall be zero-rated. (3) A supply of services, of which the services are physically received at no time and place other than the time and place . AG O at which the services are physically performed, shall be zero- of n rated if the services are performed outside the United Republic. io s is [s. 60] m er tp ou Services 63. A supply of services shall be zero-rated, if the services consists ith w connected with of repairing, maintaining, cleaning, renovating, modifying, ed temporary ut treating, or otherwise physically affecting goods that- rib imports st Acts Nos. (a) are imported under a special regime for temporary di or 1 of 2005 imports under the East African Customs Management ed 2 of 2016 s. 95 uc Act, or are brought temporarily into Mainland Tanzania od pr for the purpose of the performance of the services; and re be (b) are removed from the United Republic after the services ay m have been performed and are not used in Mainland ok bo Tanzania for any purpose other than to enable the services is th to be performed or to enable the goods to be brought into of rt Mainland Tanzania or outside the United Republic. pa o [s. 61] d .N ver se Zero-rating of 64.–(1) A Supply of services shall be zero-rated where- re supply of services s (a) the customer is outside the United Republic at the time ht Act No. rig 2 of 2016 s. 96 of supply and effectively uses or enjoys the services ll .A outside the United Republic; and a ni za (b) the services are neither directly related to land situated an fT in the United Republic nor physically performed on to en goods situated in the United Republic at the time of n m er supply. ov G (2) A supply of services is not zero-rated in accordance with 25 20 the provision of subsection (1), where- © (a) the supply is of a right or option to receive a subsequent supply of something else in the United Republic; or 336  THE VALUE ADDED TAX ACT [CAP. 148 R.E. 2023] (b) the services are supplied under an agreement with a non-resident but are rendered to a person in the United Republic who is not a registered person. [s. 61A] . AG

65 — A supply of electricity services by a supplier of electricity

65. A supply of electricity services by a supplier of electricity O Zero-rating of supply of service in Mainland Tanzania to another supplier of electricity n io electricity s is services service in Tanzania Zanzibar shall be zero-rated. m er Act No. [s. 61B] tp 8 of 2019 s. 48 ou ith w Intellectual 66. A supply of services consisting of filing, prosecuting, ed property rights ut granting, maintaining, transferring, assigning, licensing, rib for use outside st United Republic or enforcing intellectual property rights for use outside the di or United Republic shall be zero-rated. ed uc [s. 62] od pr re

67 — A supply of telecommunication services by a

67. A supply of telecommunication services by a be Inter-carrier tele- ay communication telecommunications service provider to a non-resident m services ok telecommunications service provider shall be zero-rated, bo is including a supply involving the termination of calls in th of Mainland Tanzania or the transmission of signals in or through rt pa Mainland Tanzania. o .N [s. 63] d ver se re (c) Special Rules s ht rig

68 — (1) A non-resident who carries on economic activity in

68.–(1) A non-resident who carries on economic activity in ll Value added tax a.A representatives of Mainland Tanzania without having a fixed place in Mainland ni za non-residents Tanzania, and makes a taxable supply for which the non- an Act No. fT 5 of 2022 s. 125 resident is liable to pay value added tax shall- to en (a) appoint a value added tax representative in Mainland n m er Tanzania in accordance with the requirements set out ov G in the regulations; and 25 20 (b) where required by the Commissioner General, lodge a © security. (2) The value added tax representative shall be a resident and responsible for doing all things required to be done under this Act, which shall include- 337  THE VALUE ADDED TAX ACT [CAP. 148 R.E. 2023] (a) applying for registration or cancellation of registration and fulfilling other obligations in relation to registration; and (b) paying any value added tax or any fine, penalty or interest imposed on the non-resident under this Act. . AG O (3) The registration of a value added tax representative shall of n be in the name of the principal. io s is (4) A person who is the value added tax representative of m er tp more than one non-resident shall register separately for value ou added tax in respect of each non-resident. ith w (5) Notwithstanding subsection (1), where it is not ed ut rib practicable to appoint a tax representative due to his business st di circumstances, a non-resident person shall apply to the or ed Commissioner to be registered in accordance with procedures uc od prescribed in the regulations. re pr [s. 64] be ay m Services from 69.–(1) Where a taxable person carries on economic activities ok bo foreign branch at a fixed place in Mainland Tanzania and at one or more fixed is Act No. th 2 of 2016 s.97 places outside Mainland Tanzania- of rt (a) the person shall be treated as two separate persons pa o corresponding respectively to the economic activities d .N carried on inside and outside Mainland Tanzania; ver se (b) the person outside Mainland Tanzania shall be deemed re s ht to have made a supply of imported services to the person rig inside Mainland Tanzania consisting of any benefit in ll .A a the nature of services that is received by the person in ni za an Mainland Tanzania through or as a result of the activities fT carried on by the person outside Mainland Tanzania; and to en (c) the time of supply shall be determined on the n m er assumption that a supply has been made. ov G (2) Where, within twelve months from the time of making 25 20 a supply referred to in subsection (1), the person outside © Mainland Tanzania makes an allocation of costs to the person inside Mainland Tanzania in respect of the supply, the allocation of costs shall be treated as consideration for the supply. 338  THE VALUE ADDED TAX ACT [CAP. 148 R.E. 2023] (3) Where a supply referred to in subsection (1) is a taxable supply, the value of the supply- (a) where the provision of subsection (2) applies, shall be equal to the amount of the costs allocated, reduced by that part, if any, of the amount allocated that represents- . AG O (i) salary or wages paid to an employee of the person of n outside Mainland Tanzania; and io s is (ii) interest incurred by the person outside Mainland m er tp Tanzania; and ou (b) in any other case, shall be assumed to have been made ith w by a non-resident outside Mainland Tanzania to a ed ut rib connected person in Mainland Tanzania. st di [s. 65] or ed uc PART V od pr re RETURNS, PAYMENTS AND REFUNDS be ay m (a) Returns and Payment ok bo

70 — (1) A taxable person shall lodge a value added tax return

70.–(1) A taxable person shall lodge a value added tax return is Value added tax th returns in the form and manner prescribed by the Minister on the of Acts Nos. rt pa 2 of 2016 s. 98 20th day of a month after the end of the tax period to which it o .N 4 of 2017 s. 68 relates, whether or not that person has a net amount of value d ve added tax payable for that period. r se re (2) A non-taxable person who is required to pay an s ht amount of value added tax under this Act shall file a return in rig ll .A respect of that value added tax at the time prescribed by the a ni Commissioner General. za an (3) A taxable person who has filed a value added tax return fT to may, on application in the prescribed manner and not later en m than three years after the end of the tax period to which the n er ov returns relates, request the Commissioner General to amend G 25 the returns to correct any genuine omission or incorrect 20 © declaration made in the returns. 339  THE VALUE ADDED TAX ACT [CAP. 148 R.E. 2023] (4) Where a person makes an application under subsection (3), the Commissioner General may- (a) make a decision on the application on the basis of the information provided in the application without undertaking an audit or investigation of the applicant’s . AG O tax affairs; or of n (b) amend the original return or accept filing of an io s is amended return. m er tp (5) The decision by the Commissioner General under ou subsection (4) shall be made not later than ninety days of ith w receiving the application, and the decision shall be in writing ed ut rib stating- st di (a) the details, if any, of the amendment made; or ed (b) the reasons for the decision and the details of the uc od applicant’s rights to object and appeal against the re pr decision; and be (c) the time, place, and manner of filing a notice of objection. ay m (6) A taxable person who makes an application to amend a ok bo value added tax return before the receipt of a notice of audit or is th investigation, if any, shall pay the unpaid tax and the applicable of rt interest for late payment. pa o .N (7) For purposes of subsection (1), where the 20th day falls d ve on a Saturday, Sunday or a public holiday, the value added tax r se re return shall be lodged on the first working day following a s ht Saturday, Sunday or public holiday. rig ll [s. 66] .A a ni za an (b) Net Amount of Value Added Tax Payable fT to

71 — (1) The net amount of value added tax payable by a taxable

71.–(1) The net amount of value added tax payable by a taxable en Calculation and m payment of net n person in relation to a tax period shall be calculated by- er amount ov (a) adding all output tax that becomes payable by the G 25 person in that tax period; 20 © (b) subtracting all input tax credits allowed in that tax period; and 340  THE VALUE ADDED TAX ACT [CAP. 148 R.E. 2023] (c) adjusting the resulting amount by- (i) adding all increasing adjustments required to be made in that tax period; and (ii) subtracting all decreasing adjustments allowed in that tax period. . AG O (2) Where the amount of output tax payable in a tax period of n is nil, it shall not prevent the subtraction of input tax credits or io s is the addition and subtraction of adjustments. m er tp (3) Where the net amount for a tax period is a positive ou amount- ith w (a) it shall be accounted for and paid by the taxable person ed ut rib at the time when the value added tax return is due to be st di filed; and or ed (b) the liability to pay the net amount shall arise by uc od operation of this section and shall not depend on the re pr making of an assessment of the amount due by the be Commissioner General. ay m (4) Where the net amount for a tax period is a negative ok bo amount, it shall be carried forward into one or more subsequent is th tax periods in accordance with section 84, unless an immediate of rt refund is allowable under section 85. pa o .N [s. 67] d ver se (c) Input Tax Credits re s ht rig Credit for input 72.–(1) A taxable person shall be allowed a credit for an ll .A tax amount of input tax incurred by the person if- a ni Acts Nos. za 7 of 2017 s. 47 (a) the goods, services, or immovable property on which an 8 of 2019 s. 49 fT the input tax was incurred were acquired or imported to 8 of 2020 s. 81 into Mainland Tanzania by the person in the course of en n m the person’s economic activity and for the purpose of er ov making taxable supplies; G 25 (b) in the case of a supply, the person paid or is liable to 20 © pay, the consideration for the supply; and 341  THE VALUE ADDED TAX ACT [CAP. 148 R.E. 2023] (c) in the case of an import, the person paid, or is liable to pay, the value added tax imposed on the import under this Act or input tax paid under the value added tax law applicable in Tanzania Zanzibar, where the respective goods are transferred to Mainland Tanzania. . AG O (2) The value added tax payable by the purchaser of a of n taxable supply of imported services shall be output tax and io s is input tax of that person, and the purchaser shall not be allowed m er tp an input tax credit for that supply unless he has accounted for ou the output tax in the same value added tax return in which the ith w input tax credit is claimed. ed ut rib (3) A taxable person shall not be allowed an input tax credit st di for- or ed (a) an acquisition of goods, services, or immovable uc od property, to the extent that it is used to provide re pr entertainment, unless the person’s economic activity be involves providing entertainment in the ordinary ay m course of the person’s economic activity; ok bo (b) an acquisition of a membership or right of entry for any is th person in a club, association or society of a sporting, of rt social or recreational nature; pa o .N (c) an acquisition or import of a passenger vehicle, or of d ve spare parts or repair and maintenance services for a r se re passenger vehicle, unless the person’s economic activity s ht involves dealing in, hiring out, or providing transport rig ll services in passenger vehicles and the vehicle was .A a ni acquired for that purpose: za an Provided that, in the case of raw minerals, input tax credit fT to shall not be allowed with effect from the 20th day of July, en m 2017. n er (4) The restrictions in subsection (3)(a) and (b) shall not ov G apply to acquisitions or imports used to provide in-kind 25 20 benefits to employees and the supply of which is taxable under © section 25. 342  THE VALUE ADDED TAX ACT [CAP. 148 R.E. 2023] (5) In applying this section for an adjustment event referred to in paragraph (b) of the definition of the term “adjustment event”- (a) references to “the supply” shall be read as if they refer to- . AG O (i) in the case of the value added tax previously of n accounted for by the supplier, the value added tax io s is paid when the voucher was issued or sold; and m er tp (ii) in the case of the value added tax payable on the ou supply, the value added tax that would have been ith w payable on the supply for which the voucher is ed ut rib given, if the supply of the voucher had not been a st di taxable supply; and or ed (b) the limitation in section 75(1)(b)(ii) shall not apply. uc od (6) Where an adjustment event occurs in relation to a re pr supply of imported services, the purchaser of the services shall be be treated as if he is also the supplier of the services. ay m [s. 68] ok bo is th Timing of input 73.–(1) Where a taxable person is allowed an input tax credit, of tax credits rt the tax period in which the credit may be included in the pa Act No. o calculations pursuant to section 74 shall be the latter of: .N 5 of 2022 s. 126 d 7 of 2023 s. 69 (a) the tax period in which the value added tax became ver se payable under this Act on the supply or import to re s ht which the input tax relates; or rig (b) if the person did not claim the input tax credit in that ll .A a period, any one of the six succeeding tax periods. ni za an (2) The input tax shall not be deducted or credited after a fT period of six months from the date of tax invoice, fiscal receipt to en or other evidence referred under subsection (3). n m er (3) A taxable person shall not include an input tax credit ov G in the calculations made in section 74, unless at the time of 25 20 filing the value added tax return for the relevant tax period © such person holds- (a) in the case of an import into the United Republic by the person, a proof for payment of tax, a Single Administrative Document or similar document, 343  THE VALUE ADDED TAX ACT [CAP. 148 R.E. 2023] bearing the name, Taxpayer Identification Number and value added tax registration number of the importer which are duly cleared by customs for home consumption in Mainland Tanzania; and (b) in the case of a supply made to a person in Mainland . AG O Tanzania, a valid tax invoice or fiscal receipt issued by of n the supplier under this Act. io s is [s. 69] m er tp ou Partial input tax 74.–(1) This section shall apply to input tax incurred on goods, ith w credit services, or immovable property acquired or imported into ed ut Mainland Tanzania by a taxable person in the course of the rib st person’s economic activity but only partly for the purpose of di or making taxable supplies. ed uc (2) The amount of the credit allowed for input tax to od pr which this section relates shall be calculated according to the re be following formula- ay m I x Ṯ ok bo A is th Where- of rt I: is the total amount of input tax to which this subsection pa o relates and for which a credit is sought in the tax d .N period; ver se T: is the value of all the taxable supplies made by the re s taxable person during the tax period; and ht rig A: is the value of all the supplies made by the taxable ll .A person during the tax period. a ni za (3) The amount of the input tax credit allowed under this an fT section shall be provisional, and an annual adjustment of the to en input tax credit shall be calculated at the end of each accounting n m year as follows- er ov G (a) add up all the input tax credits allowed under subsection 25 (2) for each of the twelve tax periods occurring during 20 © that accounting year; (b) apply the formula in subsection (2) as if references to “the tax period” in the definitions of “I”, “A”, and “T” were references to the relevant accounting year; 344  THE VALUE ADDED TAX ACT [CAP. 148 R.E. 2023] (c) work out the amount of the adjustment by subtracting the amount worked out under paragraph (b) from the amount worked out under paragraph (a); (d) if the adjustment so calculated is a positive amount, the taxable person shall make an increasing adjustment . AG O equal to that amount in the person’s value added of n tax return for the sixth tax period in the following io s is accounting year, or such earlier tax period as the m er tp regulations prescribe; and ou (e) if the adjustment so calculated is a negative amount, the ith w taxable person shall be allowed a decreasing adjustment ed ut rib for that amount in the value added tax return for the st di sixth tax period in the following accounting year, or or ed such earlier tax period as the regulations prescribe. uc od (4) For purposes of this section- re pr (a) supplies made through an economic activity carried on be at a fixed place outside Mainland Tanzania shall not be ay m included in A or T in the formula, unless those supplies ok bo are made in Mainland Tanzania; is th (b) if T/A is greater than 0.90, the taxable person shall be of rt allowed a credit for all of the input tax to which this pa o .N section relates; and d ve (c) if T/A is less than 0.10, the taxable person shall not be r se re allowed a credit for any of the input tax to which this s ht section relates. rig ll [s. 70] .A a ni za an (d) Other Adjustments fT to

75 — (1) Where an adjustment event has the effect that the value

75.–(1) Where an adjustment event has the effect that the value en Post supply m adjustments for n added tax previously accounted for by the supplier is less than er adjustment events ov the value added tax properly payable on the supply- G 25 (a) the supplier shall- 20 © (i) make an increasing adjustment equal to the amount of the difference; and (ii) issue a valid adjustment note to the customer within seven days of becoming aware of the adjustment event; and 345  THE VALUE ADDED TAX ACT [CAP. 148 R.E. 2023] (b) where the customer is a taxable person, he shall be allowed a decreasing adjustment calculated in accordance with subsection (1)(a). (2) Where an adjustment event has the effect that the value added tax previously accounted for by the supplier exceeds the . AG O value added tax properly payable on the supply- of n (a) the supplier shall- io s is (i) subject to the limitations set out in section 76, m er tp be allowed a decreasing adjustment equal to the ou amount of the difference; and ith w (ii) issue a valid adjustment note to the customer ed ut rib within seven days of becoming aware of the event; st di and or ed (b) where the customer is a taxable person, he shall make uc od an increasing adjustment calculated in accordance with re pr subsection (3). be (3) The amount of a decreasing adjustment allowed under ay m subsection (1), or an increasing adjustment the customer shall ok bo make under subsection (2), is equal to- is th (a) where the customer is entitled to a full input tax of rt credit for the original acquisition, the amount of the pa o .N difference; d ve (b) where the customer is entitled to a credit for only part of r se re the input tax on the original acquisition, an appropriate s ht proportion of the amount of the difference; or rig ll (c) where the customer is not entitled to an input tax credit .A a ni for the original acquisition, nil. za an [s. 71] fT to en

76 — (1) A decreasing adjustment shall not be allowed under

76.–(1) A decreasing adjustment shall not be allowed under m Limitations on n er adjustments section 75- ov G (a) for a customer, unless he holds a valid adjustment note 25 20 issued by the supplier at the time when the customer © submits value added tax returns for the tax period in which the adjustment is claimed; and 346  THE VALUE ADDED TAX ACT [CAP. 148 R.E. 2023] (b) for a supplier, unless- (i) he has issued an adjustment note to the customer and retained a copy for his own records; and (ii) if the customer is not a registered person, he has repaid the excess value added tax to the customer, . AG O whether in cash or as a credit against any amount of n owing to the supplier by the customer. io s is (2) For purposes of subsection (1)(b)(ii)- m er tp (a) where a supplier refunds part or all of the price paid due ou to an adjustment event covered by paragraph (a)(i), (a) ith w (ii) or (a)(iii) of the definition of the term “adjustment ed ut rib event”, the amount refunded shall, unless there is st di evidence to the contrary, be presumed to include an or ed amount of value added tax equal to the tax fraction of uc od the amount refunded; and re pr (b) where a supplier refunds an amount because of an be adjustment event covered by paragraph (a)(iv) of the ay m definition of the term “adjustment event”, the amount ok bo refunded would be presumed to be the amount of is th value added tax that is no longer payable, unless there of rt is evidence to the contrary. pa o .N [s. 72] d ve r se

77 — (1) An increasing adjustment which a taxable person is

77.–(1) An increasing adjustment which a taxable person is re Period of making s adjustments ht required to make under section 75 shall be made in the tax rig period in which the taxable person becomes aware of the ll a.A adjustment event. ni za an (2) A decreasing adjustment which a taxable person is fT allowed under section 75 shall be- to en (a) in the case of a supplier, in the tax period in which the n m er supplier issues the adjustment note; or ov G (b) in the case of a customer, in the tax period in which the 25 20 customer first becomes aware of the adjustment event © or in any one only of the subsequent six tax periods. [s. 73] 347  THE VALUE ADDED TAX ACT [CAP. 148 R.E. 2023] Post supply 78.–(1) This section shall apply where all or part of the adjustments for bad debts consideration for a taxable supply has not been paid to the Act No. supplier. 4 of 2017 s. 69 (2) Where all or part of consideration payable to the supplier for a taxable supply has been overdue for more than . AG O eighteen months and the supplier has, in his books of account, of n written off the amount unpaid as a bad debt, the supplier shall io s is be allowed a decreasing adjustment equal to the amount that m er tp remains unpaid after the tax period in which- ou (a) the amount first becomes overdue by more than ith w eighteen months; or ed ut rib (b) the debt is written off as bad in the suppliers books of st di account. or ed (3) Where all or part of the consideration payable to a uc od supplier for a taxable supply has been overdue for more than re pr eighteen months and the customer claimed an input tax be credit for the supply, the customer shall make an increasing ay m adjustment equal to the amount that remains unpaid in the tax ok bo period in which the payment first becomes overdue by more is th than eighteen months. of rt (4) Where a supplier makes a decreasing adjustment for a pa o .N bad debt, or a customer makes an increasing adjustment for an d ve overdue debt, and the customer pays to the supplier part or all r se re of the previously unpaid amount, further adjustments shall be s ht made in order to ensure that- rig ll (a) in the case of the supplier, the output tax paid is equal to .A a ni the tax fraction of the consideration actually received; za an and fT to (b) in the case of the customer, the input tax credit is en m the appropriate proportion of the tax fraction of the n er consideration actually paid. ov G (5) Adjustment notes shall not be required in respect of 25 20 bad or overdue debts in order for a supplier to be allowed a © decreasing adjustment or the customer to be required to make an increasing adjustment under this section. [s. 74] 348  THE VALUE ADDED TAX ACT [CAP. 148 R.E. 2023] Application for 79.–(1) A person is deemed to have applied property for private use private use where that person uses or consumes the property for a purpose other than for the person’s economic activity. (2) A taxable person shall make an increasing adjustment if the person- . AG O (a) is or has been allowed an input tax credit in respect of of n all or part of the input tax incurred on an acquisition or io s is import of property; and m er tp (b) applies the same property wholly to a private use, or ou having used the property wholly or partly in its taxable ith w activity, applies it to such use from a particular time ed ut rib onwards. st di (3) The amount of the increasing adjustment shall be equal or ed to the lesser of the following amounts- uc od (a) the amount of the input tax credit the person was re pr allowed for the acquisition or import of the goods; or be (b) if the property has been used in the person’s taxable ay m activity before it is applied to private use, the tax ok bo fraction of the fair market value of the property at the is th time it is first applied wholly to a private use, reduced of rt to reflect the extent to which no input tax credit was pa o .N allowed. d ve (4) A taxable person shall make an increasing adjustment r se re in respect of property he modifies, improves, or produces, if- s ht (a) the person applies that property wholly to a private use; rig ll and .A a ni (b) a supply of that property by the person would have za an been a taxable supply. fT to (5) The amount of the increasing adjustment required to en m be made under subsection (4), shall be the tax fraction of the n er fair market value of the property at the time it is first applied ov G wholly to a private use. 25 20 (6) An increasing adjustment under this section shall be © made in the tax period in which the property is first applied to a private use. [s. 75] 349  THE VALUE ADDED TAX ACT [CAP. 148 R.E. 2023] Adjustment on 80.–(1) An insurer shall have a decreasing adjustment where- making insurance payment (a) he makes a payment to another person under a contract of insurance; and (b) he meets all the following conditions- (i) the supply of the contract of insurance is a taxable . AG O supply; of n (ii) the payment is not made in respect of a supply to io s is the insurer or an import by the insurer; m er tp (iii) the payment is not made in respect of a supply ou to another person, unless that supply is a taxable ith w supply on which value added tax is imposed at a ed ut rib rate other than zero; and st di (iv) the person to whom the payment is made is a resident or ed or a non-resident who is a registered person. uc od (2) The amount of the adjustment shall be equal to the tax re pr fraction of the payment made and the adjustment made shall be be reflected in the value added tax return for the tax period in ay m which the payment is made. ok bo [s. 76] is th of rt

81 — (1) A taxable person shall make an increasing adjustment

81.–(1) A taxable person shall make an increasing adjustment pa Adjustment o on receiving where- .N insurance d (a) the person receives a payment under a contract of ve payments r se insurance, whether or not that person is a party to the re s ht contract; rig (b) the payment relates to a loss incurred- ll a.A (i) in the course of the person’s economic activity; or ni za an (ii) in relation to an asset used wholly or partly in the fT person’s economic activity; and to en (c) the supply of the contract of insurance was a taxable n m er supply. ov G (2) The adjustment referred to under subsection (1), shall 25 20 be made in the tax period in which the payment is received © and the amount of the adjustment shall be equal to the tax fraction of the amount received, or reduced to the extent that- (a) the economic activity in which the loss was incurred involves the making of exempt supplies; or 350  THE VALUE ADDED TAX ACT [CAP. 148 R.E. 2023] (b) the asset to which the loss relates was used in making exempt supplies or for a private use; and (c) if both paragraph (a) and paragraph (b) apply, whichever is most appropriate in the context of the payment received. . AG O (3) An insurer shall make an increasing adjustment where- of n (a) he recovers an amount, other than the aggravated or io s is exemplary damages, as a result of the exercise of rights m er tp acquired by subrogation under a contract of insurance; ou and ith w (b) a decreasing adjustment is allowed to the insurer under ed ut rib this section for the payment to which the recovered st di amount relates. or ed (4) The amount of the adjustment made under subsection uc od (3) shall be equal to the tax fraction of the amount recovered re pr and the adjustment made shall be reflected in the value added be tax return for the tax period in which the amount is received. ay m [s. 77] ok bo is th Adjustment to 82. The Minister may make regulations prescribing conditions of correct minor rt under which a person shall be allowed to correct minor errors pa errors o in a value added tax return for a particular tax period by d.N making an increasing adjustment or decreasing adjustment in ve r se the value added tax return for a subsequent tax period. re s ht [s. 78] rig ll .A

83 — (1) A registered person is, at the end of the last day before

83.–(1) A registered person is, at the end of the last day before a Adjustment ni za on becoming the registration takes effect, allowed a decreasing adjustment an registered fT in relation to goods in that person’s possession where- to en (a) in the six months before the person became a registered n m er person, the goods- ov G (i) were imported by the person and the person paid 25 20 value added tax on the import; or © (ii) were supplied to the person and the person holds a tax invoice for the supply; 351  THE VALUE ADDED TAX ACT [CAP. 148 R.E. 2023] (b) that person acquired the goods in the course of his economic activity, and for the purpose of re-sale; and (c) that person would have been entitled to an input tax credit for the import or acquisition had the person been registered at the time of the acquisition or import. . AG O (2) The maximum amount of the decreasing adjustment of n allowed shall be equal to the lesser of- io s is (a) the amount of value added tax paid by the person on m er tp the import, or payable by the supplier who made the ou supply to the person; and ith w (b) the tax fraction of the fair market value of the goods at ed ut rib the time the person becomes a registered person. st di (3) A person who is allowed a decreasing adjustment under or ed this section shall make the adjustment in any one of the first uc od three tax periods after the person becomes a registered person. re pr (4) A person who makes an adjustment under this be section shall, in writing, give notice of the adjustment to the ay m Commissioner General and provide such supporting evidence ok bo as may be prescribed in the regulations. is th [s. 79] of rt pa o

84 — (1) A person whose registration is cancelled shall make

84.–(1) A person whose registration is cancelled shall make .N Adjustment on d cancellation of an increasing adjustment in his final value added tax return ver registration se in respect of property on hand at the time the registration re s ht is cancelled, if the person was allowed an input tax credit in rig respect of the acquisition or import of that property, or for ll .A a something that has been subsumed into that property. ni za an (2) The amount of the adjustment shall be equal to the fT lesser of- to en (a) the tax fraction of the fair market value of the property n m er on the day immediately preceding the cancellation; or ov G (b) that amount, reduced to reflect the extent to which the 25 20 person was not allowed an input tax credit in respect © of the acquisition or import of that property or, if applicable, on the inputs to the property. [s. 80] 352  THE VALUE ADDED TAX ACT [CAP. 148 R.E. 2023] (e) Refunds Carry forward 85.–(1) A taxable person shall be allowed a decreasing of negative net amount adjustment for negative net amounts carried forward from earlier tax periods, which shall be calculated as follows- . AG (a) in any tax period, section 71 shall first be applied O of without taking into account any decreasing adjustments n io allowed under this section; s is m (b) if the result is a positive amount- er tp (i) the person shall be allowed a decreasing ou ith adjustment for such part of one or more negative w ed net amounts carried forward from an earlier tax ut rib period as would reduce the net amount for the st di or current period to a positive amount or to nil; and ed (ii) negative net amounts from earlier tax periods uc od shall be taken into account in chronological pr re order, with the oldest being taken into account be ay first and the most recent being taken into account m ok last; and bo is (c) any part of a negative net amount for which a decreasing th of adjustment cannot be made shall be carried forward rt pa and applied in accordance with paragraph (b) until- o .N (i) it has been reduced to nil; or d ver (ii) it has been carried forward for six consecutive se re tax periods without being reduced to less than s ht rig minimum amount prescribed in the regulations. ll .A (2) A taxable person who has carried forward all or part of a ni za a negative net amount for six or more tax periods- an fT (a) may apply for a refund of the unadjusted amount to en where- n m (i) the amount is equal to or greater than minimum er ov amount same as in subsection (1)(c)(ii)); or G 25 (ii) the sum of all the unadjusted amounts the person 20 © has carried forward for more than six tax periods exceeds that amount; and 353  THE VALUE ADDED TAX ACT [CAP. 148 R.E. 2023] (b) in any other case, the person shall continue to carry forward the unadjusted amount under subsection (1) until the amount has been reduced to nil or an entitlement to a refund arises because of paragraph (a) (ii) of this subsection, whichever occurs first. . AG O (3) Notwithstanding subsection (2), a taxable person may of n choose to continue carrying an unadjusted amount forward io s is and applying it in accordance with subsection (1) until such m er tp time as the person applies for a refund of the amount in ou accordance with subsection (2). ith w (4) For purposes of this section, the term “minimum ed ut rib amount” means the amount which would not be taken into st di consideration for the purpose of claiming the input tax. or ed [s. 81] uc od pr

86 — (1) Notwithstanding section 85, a taxable person shall be

86.–(1) Notwithstanding section 85, a taxable person shall be re Refund without be carry forward entitled to a refund of a negative net amount where- ay m (a) fifty percent or more of the person’s turnover is or will ok bo be from supplies that are zero-rated; is th (b) fifty percent or more of the person’s input tax is of rt incurred on acquisitions or imports that relate to pa o making supplies that are or will be zero-rated; or d .N (c) in any other case, the Commissioner General is satisfied ver se that the nature of the person’s business regularly results re s ht in negative net amounts. rig (2) A taxable person who is entitled, under this section, to a ll .A a refund of a negative net amount may- ni za an (a) apply for a refund of the amount; or fT (b) choose to carry the amount forward under section 85 to en until such time as the person applies for a refund of the n m er amount in paragraph (a) of this subsection. ov G [s. 82] 25 20 © Refund for 87.–(1) A taxable person who has paid more than the net overpayment amount shown on the person’s value added tax return for a tax period, may apply for a refund of the amount overpaid. 354  THE VALUE ADDED TAX ACT [CAP. 148 R.E. 2023] (2) A taxable person may apply for a refund where the person has overpaid the net amount payable for a tax period if the overpayment arose in the calculation of the net amount payable for tax period, including- (a) an amount of output tax, or an increasing adjustment, . AG O which exceeded the amount that should have been of n included in those calculations; or io s is (b) an amount of input tax, or a decreasing adjustment, m er tp which is less than the amount that should have been ou included in those calculations. ith w [s. 83] ed ut rib st

88 — (1) This section applies to refunds under sections 85, 86

88.–(1) This section applies to refunds under sections 85, 86 di Application for or refunds and 87. ed uc (2) Where a person is entitled to apply for a refund to which od pr this section applies, the application for the refund shall- re be (a) be made in a manner prescribed in the regulations and ay m shall be accompanied by supporting information as the ok bo regulation may require; is th (b) not be made in case the application is made under of rt section 85 or 86, more than three years after the end of pa o the tax period to which the negative net amount relates; d .N or ver se (c) not be made in case the application is made under re s ht section 87, more than three years after the overpayment rig was made. ll .A a (3) Where a person applies for a refund to which this section ni za an relates, the Commissioner General- fT (a) may, subject to the proof of credibility of the taxpayer, to en make a decision on the application on the basis of the n m er information provided without undertaking an audit or ov G investigation of the applicant’s tax affairs; and 25 20 (b) shall, within ninety days of its receipt, make a decision © on the application and inform the applicant of the decision by notice in writing stating- (i) the amount of the refund allowed; and (ii) the period during which the refund shall be made. 355  THE VALUE ADDED TAX ACT [CAP. 148 R.E. 2023] (4) Where the Commissioner General is not satisfied that the refund should be allowed, or is satisfied that the amount refundable is less than the amount requested he shall give- (a) the reasons for the decision; (b) the applicant’s rights to objection and appeal against . AG O the decision; and of n (c) the time, place and manner of filing a notice of io s is objection. m er tp (5) The Commissioner General shall refund where he is ou satisfied that- ith w (a) the person is entitled to a refund of the amount ed ut rib requested; or st di (b) a lower amount represents the person’s actual or ed entitlement to a refund. uc od (6) The Commissioner General shall not refund the person re pr where he is satisfied that such person is not entitled to a refund. be (7) Where the Commissioner General allows a refund to ay m which this section relates- ok bo (a) the refund shall not be paid unless the applicant has is th filed all value added tax returns which the applicant is of rt required to file; and pa o .N (b) the Commissioner General may apply the refund first d ve in reduction of any outstanding liability of the person r se re for taxes payable under this Act or under another tax s ht law, including any interest, penalties or fines payable rig ll under this Act or under that tax law. .A a ni (8) Where the amount remaining after applying subsection za an (7)(b) does not exceed the minimum amount prescribed fT to in the regulations, the Commissioner General may refund en m the amount or require the taxable person to take the refund n er as a decreasing adjustment in a tax period prescribed by the ov G Commissioner General. 25 20 (9) Where the Commissioner General allows a refund under © this section, the taxable person may, with the agreement of the Commissioner General, take the refund as a decreasing adjustment in a tax period agreed with the Commissioner General. [s. 84] 356  THE VALUE ADDED TAX ACT [CAP. 148 R.E. 2023] Refund to 89.–(1) The Commissioner General may refund part or all of diplomats and international the input tax incurred on an acquisition or import by- bodies (a) a public international organisation, a foreign Act No. 4 of 2018 s. 68 government or other person prescribed by regulations, to the extent that the person is entitled to exemption . AG O from value added tax under an international assistance of n agreement; io s is (b) a person to the extent that such person is entitled to m er tp exemption for value added tax under the Vienna ou Convention on Diplomatic Relations or under any ith w other international treaty or convention having force of ed ut rib law in United Republic, or under recognised principles st di of international law; or or ed (c) a diplomatic or consular mission of a foreign country uc od established in Mainland Tanzania, relating to re pr transactions concluded for the official purposes of such be mission. ay m (2) A claim for a refund under subsection (1) shall be made ok bo in the form and manner prescribed in the regulations, and is th shall be accompanied by supporting documentation as the of rt regulations may require. pa o .N (3) The Commissioner General shall, within one tax period d ve after the date on which an application for a refund is made r se re under this section- s ht (a) make a decision in relation to the application and rig ll give the applicant notice of the decision, stating .A a ni the amount refundable and any difference between za an that amount and the amount for which a refund is fT to requested; and en m (b) pay the amount refundable to the applicant. n er [s. 85] ov G 25 20 © 357  THE VALUE ADDED TAX ACT [CAP. 148 R.E. 2023] PART VI DOCUMENTS AND RECORDS Tax invoice 90.–(1) A registered person who makes a taxable supply shall, . Act No. AG 8 of 2019 s. 50 no later than the day on which value added tax becomes payable O on the supply under section 15, issue a serially numbered true of 7 of 2023 s. 70 n io and correct fiscal receipts which shall- s is m (a) be issued in the form and manner prescribed by the er tp Minister; and ou ith (b) include the following information- w ed (i) the date on which it is issued; ut rib (ii) the name, Taxpayer Identification Number and Value st di Added Tax Registration Number of the supplier; or ed (iii) the description, quantity and other relevant uc od specifications of the things supplied; pr re (iv) the total consideration payable for the supply and be ay the amount of value added tax included in that m ok consideration; bo (v) if the value of the supply exceeds the minimum is th of amount prescribed in the regulations, the name, rt pa address, Taxpayer Identification Number and o .N Value Added Tax Registration Number of the d ve customer; and r se re (vi) any other additional information as may be s ht rig prescribed in the regulations. ll .A (2) A tax invoice which does not comply with the requirement a ni under subsection (1)(b)(v) shall be valid but shall not be used to za an support an input tax credit claim or any refund claim. fT to (3) The Minister may make regulations prescribing special en m tax invoice requirements for all or particular kinds of supplier n er ov or supply, including regulations requiring invoices to be G 25 created using certified machines. 20 © (4) One original tax invoice shall be issued for each taxable supply, and a person who has issued the original tax invoice may, if the customer is a registered person, provide a copy marked as such to a customer who claims to have lost it. [s. 86] 358  THE VALUE ADDED TAX ACT [CAP. 148 R.E. 2023] Adjustment notes 91.–(1) An adjustment note which is required to be issued by a supplier under section 75 shall- (a) be issued in the form and manner prescribed in the regulations; and (b) include the following information- . AG O (i) the date on which it is issued; of n (ii) the name, Taxpayer’s Identification Number and io s is Value Added Tax Registration Number of the m er tp supplier; ou (iii) the nature of the adjustment event and the supply ith w to which it relates; ed ut rib (iv) the effect on the amount of value added tax st di payable on the supply; or ed (v) if the effect on the value added tax payable on the uc od supply exceeds the minimum amount prescribed re pr in the regulations, the name, Taxpayer’s be Identification Number and Value Added Tax ay m Registration Number of the customer; and ok bo (vi) any other additional information as prescribed in is th the regulations. of rt (2) An adjustment note shall not be invalid merely for pa o .N not complying with the requirement of subsection (1)(b) d ve (v), but cannot be used to support a claim for a decreasing r se re adjustment. s ht (3) The Minister may make regulations prescribing special rig ll adjustment note requirements for all or particular kinds of a.A ni supplier or supply, including regulations requiring adjustment za an notes be created using certified machines. fT to (4) An amended tax invoice may be an adjustment note en m if it complies with the requirements prescribed by the n er regulations. ov G (5) One original adjustment note shall be issued for each 25 20 adjustment event in relation to a supply, and the person who © issued the original may, if the customer is a registered person, provide a copy marked as such to a customer who claims to have lost it. [s. 87] 359  THE VALUE ADDED TAX ACT [CAP. 148 R.E. 2023] Documentation 92.–(1) Where a taxable supply is made by an agent or to an issued by or to agents agent on behalf of a principal and both the agent and principal are registered persons, any documentation required to be issued by the principal, including tax documentation, may be issued by the agent or to an agent in the name, address, . AG O Taxpayers Identification Number and Value Added Tax of n Registration Number of the principal. io s is (2) Where a taxable supply is made to an agent acting on m er tp behalf of a principal and both the agent and the principal are ou registered, any documentation required to be issued to the ith w principal, including a tax invoice generated by electronic fiscal ed ut rib device or adjustment note, may be issued to the agent and shall st di be in the name, address, Taxpayer Identification Number and or ed Value Added Tax Registration Number of the principal. uc od re pr [s. 88] be Records and 93.–(1) A taxable person shall keep record of all accounts, ay m accounts documents, returns, and other records that are required ok bo to be issued or given under this Act, or such other tax law, is th including- of rt (a) tax invoices and adjustment notes issued and received pa o by the person; d .N (b) customs documentation relating to imports and ver se exports of goods by the person; re s ht (c) records relating to supplies of imported services to the rig person, whether or not those supplies were taxable ll .A a supplies; ni za an (d) a value added tax account that records, for each tax fT period, all the output tax payable by the person in that to en period, or the input tax credit the person is allowed n m er in that period, and all the increasing and decreasing ov G adjustments that the person is required or entitled to 25 20 make in that period; and © (e) records showing the deposit of amounts paid to the Commissioner General under this Act. 360  THE VALUE ADDED TAX ACT [CAP. 148 R.E. 2023] (2) The records referred to under subsection (1) shall be maintained- (a) for at least five years from the end of the tax period to which they relate; or (b) until a later date on which the final decision is made in . AG O any audit, recovery proceedings, dispute, prosecution, of n or other proceedings under this Act relating to that tax io s is period. m er tp [s. 89] ou ith w PART VII ed ut rib ADMINISTRATION st di or ed Tax decisions 94. The following decisions shall be tax decisions made or uc od deemed to have been made under this Act- pr re (a) a decision to register a person for value added tax; be ay (b) a decision to cancel a person’s registration for value m ok added tax; bo (c) a decision not to pay a refund or not to allow a is th of decreasing adjustment; rt pa (d) the issue of an assessment, including a decision to o .N make an assessment of an administrative penalty, and d ve decision as to the amount of the penalty; r se re (e) a decision in response to a request for permission to file s ht rig a value added tax return late; ll .A (f) a decision in response to a request for an extension of a ni time to pay an amount payable under this Act, to require za an payment sooner than requested, or to require the fT to applicant to comply with other payment arrangements; en m (g) a decision to declare a person to be a representative of n er ov a taxable person for the purposes of this Act; G 25 (h) a decision not to remit all or part of an amount of 20 © interest payable in respect of another amount payable under this Act; and (i) a decision not to remit all or part of a penalty imposed under or in respect of this Act. [s. 90] 361  THE VALUE ADDED TAX ACT [CAP. 148 R.E. 2023] Continuity of 95. Where- partnerships or unincorporated (a) a partnership or other association of persons is associations dissolved or otherwise ceases to exist as a result of the retirement or withdrawal of one or more of its partners or members, or of the admission of a new partner or . AG O member; of n (b) a new partnership or association comes into existence io s is consisting of the remaining members, or of the existing m er tp members and one or more new members; and ou (c) the new partnership or association continues to carry ith w on the economic activity that was carried on by the ed ut rib dissolved partnership or association, st di the dissolved partnership or association and the new or ed partnership or association shall, for the purposes of this Act, uc od be deemed to be one and the same, unless the Commissioner re pr General otherwise directs. be [s. 91] ay m ok bo Death or 96.–(1) Where, after the death of a taxable person or the is th insolvency of sequestration of a taxable person’s estate- of taxable person, rt (a) an economic activity previously carried on by the pa mortgagee in o possession taxable person is carried on by or on behalf of the d .N executor or trustee of the person’s estate; or ver se (b) anything is done in connection with the termination of re s ht the economic activity, rig the estate of the taxable person, as represented by the executor ll .A a or trustee, shall, for the purposes of this Act, be deemed to be ni za an the taxable person in respect of the economic activity. fT (2) Where a mortgagee takes possession of land or other to en property previously mortgaged by a mortgagor who is a taxable n m er person and, while in possession of the land or property, the ov G mortgagee carries on the economic activity previously carried 25 20 on by the mortgagor in relation to the land or other property, © the mortgagee shall, to the extent of and for the duration that it carries on that economic activity, be deemed to be the mortgagor. [s. 92] 362  THE VALUE ADDED TAX ACT [CAP. 148 R.E. 2023] Interaction with 97.–(1) This section has effect for the purposes of income tax. income tax (2) For purposes of income tax, any value added tax payable for a supply shall be treated as if it were not part of the consideration received by the supplier for the supply. (3) Where the amount of value added tax payable on the . AG O supply is later adjusted, the amount taken into account for of n income tax shall be correspondingly adjusted. io s is (4) Input tax incurred by a person shall be included in m er tp calculating the amount of an expense or outgoing, whether of ou an income or capital nature, to the extent that the person was ith w not allowed an input tax credit for that input tax. ed ut rib (5) Where the amount of input tax for which a credit was st di allowed is later adjusted, the amount taken into account for or ed income tax shall be correspondingly adjusted. uc od re pr [s. 93] be PART VIII ay m ok GENERAL PROVISIONS bo is th

98 — (1) The Minister may make regulations prescribing for

98.–(1) The Minister may make regulations prescribing for of Power to make rt pa regulations any matter necessary or convenient in order to carry out or o Acts Nos. .N 2 of 2016 s. 99 give effect to the provisions of this Act. d ve 3 of 2021 s. 78 (2) Without prejudice to the generality of subsection (1), r se 5 of 2022 s. 127 re the Minister may make regulations- s ht rig (a) requiring persons or classes of persons to provide ll .A information required, whether on an isolated or a ni periodic basis; za an (b) providing for application of special schemes for fT to payment and recovery of value added tax from en m particular persons or classes of persons; n er ov (c) prescribing for adjustments to be made when a taxable G 25 person applies for property for private use and for 20 © taxable activity, and the extent to which the property changes significantly; 363  THE VALUE ADDED TAX ACT [CAP. 148 R.E. 2023] (d) prescribing methods for suppliers of financial services to calculate the proportion of input tax that is reasonably attributable to the making of taxable supplies; (e) prescribing methods for taxable persons to calculate the extent to which an amount of input tax may be . AG O credited; of n (f) prescribing for the manner value added tax account io s is shall be maintained; m er tp (g) prescribing for the manner of remission of value added ou tax collected for goods supplied to a registered taxable ith w person in Tanzania Zanzibar; and ed ut rib (h) prescribing the manner and procedure of dealing st di in loans, including alternative financing products or ed approved by the Bank of Tanzania. uc od (3) Without prejudice to the provisions of subsection (1), re pr the regulations shall not have the effect of- be (a) making a supply or import exempt or zero-rated; or ay m (b) making a person or class of persons exempt from the ok bo payment of a tax imposed under this Act. is th [s. 94] of rt pa o

99 — (1) [Repeals the Value Added Tax Act]

99.–(1) [Repeals the Value Added Tax Act]. .N Repeal and d savings (2) Notwithstanding subsection (1)- ver Act No. se (a) regulations, rules, orders or notices made under re 24 of 1997 s ht the repealed Value Added Tax Act and in force shall rig continue to be in force until they are revoked, amended ll a .A or cancelled by regulations, rules, orders or notices ni za an made under this Act; fT (b) where the Government of the United Republic has to en concluded a binding agreement relating to exploration n m er and prospecting of minerals, gas or oil with a person ov G before the commencement of this Act, the provisions 25 20 of the repealed Act relating to value added tax relief © shall continue to apply to the extent provided for in the agreement; and 364  THE VALUE ADDED TAX ACT [CAP. 148 R.E. 2023] (c) the value added tax relief granted to an investor Cap. 373 licensed under the Export Processing Zone Act or the Special Economic Zone Act shall continue to apply to Cap. 420 the extent provided for under the repealed Act. [s. 95] . AG O of

100 — (1) Notwithstanding section 99, blank forms and other

100.–(1) Notwithstanding section 99, blank forms and other n Transitional io s provisions is documents used in relation to the repealed Value Added Tax m Act No. er Act, may continue to be used under this Act, and all references tp 24 of 1997 ou in those forms and documents to provisions of and expressions ith w appropriate to the repealed Value Added Tax Act, are taken to ed ut refer to the corresponding provisions and expressions of this Act. rib st (2) Every registered person who, in any one of the twelve di or months prior to the commencement day, filed a return ed uc under the repealed Value Added Tax Act shall be treated as a od pr registered person for the purposes of this Act. re be (3) The Commissioner General shall, within three months ay m from the date of commencement of this Act, serve notice on ok bo every person who becomes a registered person pursuant to is th subsection (2) confirming the registration of that person and of rt informing him his option to cancel his registration if he is not pa o required to be registered for value added tax. d.N (4) A person who is required to be registered for value ve r se added tax and is not automatically registered under subsection re s ht (2) shall apply for registration within thirty days from the rig commencement date of this Act and, prior to becoming ll .A a registered, shall comply with this Act as if that person was a ni za an registered person. fT (5) Input tax incurred under the repealed Value Added Tax to en Act for- n m er (a) a person who was entitled to input tax for all or part of ov G the value added tax charged on an import or acquisition 25 20 by that person; and © (b) the input tax credit would have been allowed in a tax period ending after the date of commencement of this Act, 365  THE VALUE ADDED TAX ACT [CAP. 148 R.E. 2023] shall be allowed under this Act as decreasing adjustment against the person. (6) The decreasing adjustment referred to under subsection (5) may be claimed once in any of the first six tax periods ending after the date of commencement of this Act. . AG O (7) The person shall notify the Commissioner General, in of n the form and manner prescribed, of the amount that is to be io s is claimed, the tax period in which it is to be claimed, and such m er tp other information as the regulations may prescribe and the ou Commissioner General may disallow all or part of the amount ith w if the Commissioner General is not satisfied that the person ed ut rib incurred the value added tax and is entitled to the decreasing st di adjustment. or ed (8) The value added tax imposed under this Act on a taxable uc od supply shall become payable on the date of commencement of re pr this Act, where- be (a) the supply is, or will be, made after the commencement ay m of this Act; ok bo (b) before that day an invoice for the supply was issued or is th a payment for the supply was made, or both; and of rt (c) value added tax was not paid on the supply under the pa o .N repealed Act. d ve (9) Subsection (8) shall apply separately to each part of r se re a progressive or periodic supply that is treated as a separate s ht supply. rig ll [s. 96] .A a ni za an fT to en n m er ov G 25 20 © 366  THE VALUE ADDED TAX ACT [CAP. 148 R.E. 2023] SCHEDULE (Made under section 6(1)) PART I . AG SUPPLIES AND IMPORTS EXEMPT FROM VALUE ADDED TAX O of Acts Nos. n io 2 of 2016 s. 100 s is m 4 of 2017 ss. 70 & 71 er 9 of 2017 s. 36 tp 4 of 2018 s. 69 ou ith 6 of 2019 s. 30 w 8 of 2019 s. 51 ed 8 of 2020 s. 82 ut rib 3 of 2021 s. 79 st 5 of 2022 s. 128 di or 9 of 2022 s. 15 ed 7 of 2023 s. 71 uc

1 — Agricultural implements

1. Agricultural implements. od pr No. Implements re HSC be

1 — Tractors for agricultural use 8701.30.00,8701.91.00,

1. Tractors for agricultural use 8701.30.00,8701.91.00, ay 8701.92.00,8701.93.00, m ok 8701.94.00 8701.95.00 bo

2 — Agricultural, horticultural or forestry machinery 84.32

2. Agricultural, horticultural or forestry machinery 84.32 is th for soil preparation or cultivation except lawn of mower or sports ground rollers and parts rt pa

3 — Harvesting or threshing machinery except 84.33

3. Harvesting or threshing machinery except 84.33 o .N machines under HS Code 8433.11.00, d ve 8433.19.00, 8433.90.00 r se

4 — Liquid sprayers for agriculture 8424.41.00 8424.49.00

4. Liquid sprayers for agriculture 8424.41.00 8424.49.00 re s ht

5 — Powder sprayers for agriculture 8424.41.00 8424.49.00

5. Powder sprayers for agriculture 8424.41.00 8424.49.00 rig

6 — Spades 8201.10.00

6. Spades 8201.10.00 ll .A a

7 — Shovels 8201.10.00

7. Shovels 8201.10.00 ni za

8 — Mattocks 8201.30.00

8. Mattocks 8201.30.00 an fT

9 — Picks 8201.30.00

9. Picks 8201.30.00 to en

10 — Hoes 8201.30.00

10. Hoes 8201.30.00 n m er

11 — Forks 8201.90.00

11. Forks 8201.90.00 ov G

12 — Rakes 8201.30.00

12. Rakes 8201.30.00 25

13 — Axes 8201.40.00

13. Axes 8201.40.00 20 ©

14 — Tractor trailers 8716.20.90

14. Tractor trailers 8716.20.90

15 — New Pneumatic Tyres of a kind used in 4011.70.00

15. New Pneumatic Tyres of a kind used in 4011.70.00 agricultural and forest vehicles

16 — Rotavator 8432.29.00

16. Rotavator 8432.29.00 367  THE VALUE ADDED TAX ACT [CAP. 148 R.E. 2023] No. Implements HSC

17 — Poultry incubator 8436.21.00

17. Poultry incubator 8436.21.00

18 — Irrigation equipment 8424.82.00

18. Irrigation equipment 8424.82.00

19 — Irrigation parts (sprinkler system, chemical 8424.90.00

19. Irrigation parts (sprinkler system, chemical 8424.90.00 injection system, water disinfection system, . AG rain guns, high pressure fogging equipments, O Irrigation computer, filter for irrigation system) of n io

20 — Green house system 9406.10.10, 9406.20.10

20. Green house system 9406.10.10, 9406.20.10 s is 9406.90.10 m er

21 — Semen for bovine animal 0511.10.00

21. Semen for bovine animal 0511.10.00 tp ou

22 — Semen for non-bovine animal 0511.99.10

22. Semen for non-bovine animal 0511.99.10 ith w

23 — Dam liner 3920

23. Dam liner 3920 ed ut

24 — Ear tag 3926.90.90

24. Ear tag 3926.90.90 rib st

25 — Ear tag applicators 8456.90.00

25. Ear tag applicators 8456.90.00 di or

26 — Automatic turning table 8207.30.00

26. Automatic turning table 8207.30.00 ed uc

27 — Stunning box 8438.50.00

27. Stunning box 8438.50.00 od

28 — Lessor beam machines pr 9402.90.90

28. Lessor beam machines pr 9402.90.90 re be ay

2 — Agricultural inputs

2. Agricultural inputs m ok No. Item HS code bo is

1 — Fertilisers Chapter 31

1. Fertilisers Chapter 31 th of

2 — Pesticides 3808.99.10 or 3808.99.90

2. Pesticides 3808.99.10 or 3808.99.90 rt pa

3 — Insecticides 3808.91.11 to 3808.91.99

3. Insecticides 3808.91.11 to 3808.91.99 o .N

4 — Fungicides 3808.92.10 or 3808.92.90

4. Fungicides 3808.92.10 or 3808.92.90 d ve r

5 — Rodenticides 3808.99.10 or 3808.99.90

5. Rodenticides 3808.99.10 or 3808.99.90 se re

6 — Herbicides 3808.93.10 or 3808.93.90

6. Herbicides 3808.93.10 or 3808.93.90 s ht rig

7 — Anti sprouting products 3808.93.10 or 3808.93.90

7. Anti sprouting products 3808.93.10 or 3808.93.90 ll .A

8 — Plant growth regulators 3808.93.10 or 3808.93.90

8. Plant growth regulators 3808.93.10 or 3808.93.90 a ni

9 — Agro net 56. 08

9. Agro net 56. 08 za an fT

3 — Livestock, basic agricultural products and food for human

3. Livestock, basic agricultural products and food for human to en consumptions n m er No Food item HSC ov G

1 — Live cattle 0102.21.00

1. Live cattle 0102.21.00 25 20 0102.29.00 ©

2 — Live swine 0103.10.00

2. Live swine 0103.10.00 0103.91.00 0103.92.00 368  THE VALUE ADDED TAX ACT [CAP. 148 R.E. 2023] No Food item HSC

3 — Live sheep 0104.10.10

3. Live sheep 0104.10.10 0104.10.90

4 — Live goats 0104.20.10

4. Live goats 0104.20.10 0104.20.90 . AG

5 — Live poultry 01.05

5. Live poultry 01.05 O of

6 — Unprocessed edible animal products meat Chapter 2

6. Unprocessed edible animal products meat Chapter 2 n io

7 — Unprocessed edible eggs 0407.21.00

7. Unprocessed edible eggs 0407.21.00 s is m 0407.29.00 er tp

8 — Unpasteurised or pasteurised cow milk 04.01

8. Unpasteurised or pasteurised cow milk 04.01 ou ith

9 — Unpasteurised or pasteurised goat milk 04.01

9. Unpasteurised or pasteurised goat milk 04.01 w ed

10 — Unprocessed fish 03.02

10. Unprocessed fish 03.02 ut 03.03 rib 03.05 st di 03.06 or 03.07 ed uc 03.08 od

11 — Unprocessed edible vegetables pr Chapter 7

11. Unprocessed edible vegetables pr Chapter 7 re

12 — Unprocessed fruits 08.03 to 08.13

12. Unprocessed fruits 08.03 to 08.13 be ay

13 — Unprocessed nuts 08.01

13. Unprocessed nuts 08.01 m 08.02 ok bo

14 — Unprocessed bulbs 0601.10.00

14. Unprocessed bulbs 0601.10.00 is th

15 — Unprocessed tubers 0601.20.00

15. Unprocessed tubers 0601.20.00 of rt

16 — Unprocessed cereals Chapter 10

16. Unprocessed cereals Chapter 10 pa o

17 — Wheat or meslin flour 11.01

17. Wheat or meslin flour 11.01 d.N ve

18 — Maize flour 11.02

18. Maize flour 11.02 r se

19 — Tobacco, not stemmed or stripped 2401.10.00

19. Tobacco, not stemmed or stripped 2401.10.00 re s ht

20 — Unprocessed cashew nuts 0801.31.00

20. Unprocessed cashew nuts 0801.31.00 rig

21 — Unprocessed coffee 0901.11.00

21. Unprocessed coffee 0901.11.00 ll .A 0901.12.00 a ni za

22 — Unprocessed tea 0902.10.10

22. Unprocessed tea 0902.10.10 an 0902.10.90 fT 0902.20.10 to en 0902.20.90 n m

23 — Soya beans 12.01

23. Soya beans 12.01 er ov

24 — Ground nuts 12.02

24. Ground nuts 12.02 G 25

25 — Sunflower seeds 12.06

25. Sunflower seeds 12.06 20 ©

26 — Oil seeds 12.07

26. Oil seeds 12.07

27 — Unprocessed pyrethrum 1211.90.20

27. Unprocessed pyrethrum 1211.90.20

28 — Unprocessed cotton 52.01

28. Unprocessed cotton 52.01

29 — Unprocessed sisal 5303.10.00

29. Unprocessed sisal 5303.10.00 369  THE VALUE ADDED TAX ACT [CAP. 148 R.E. 2023] No Food item HSC

30 — Unprocessed sugar cane 1212.93.00

30. Unprocessed sugar cane 1212.93.00

31 — Seeds and plants thereof (seeds, fruits, spores, Any description

31. Seeds and plants thereof (seeds, fruits, spores, Any description seedlings and plants for sowing or planting)

32 — Preparations of a kind used in animal feeding 23.09

32. Preparations of a kind used in animal feeding 23.09 . AG O

33 — Fertilised eggs for incubation 0407.11.00

33. Fertilised eggs for incubation 0407.11.00 of 0407.19.00 n io

34 — Oil-cake of soya beans 2304.00.00

34. Oil-cake of soya beans 2304.00.00 s is m

35 — Oil-cake and other solid residues of cotton seeds 2306.10.00

35. Oil-cake and other solid residues of cotton seeds 2306.10.00 er tp cotton seeds ou ith

36 — Oil-cake and other solid residues of sunflower 2306.30.00

36. Oil-cake and other solid residues of sunflower 2306.30.00 w seeds ed ut

37 — Maize Bran 2302.10.00

37. Maize Bran 2302.10.00 rib st

38 — Wheat Bran 2302.30.00

38. Wheat Bran 2302.30.00 di or

39 — Lysine 2922.41.00

39. Lysine 2922.41.00 ed uc

40 — Methlonine 29390.40.00

40. Methlonine 29390.40.00 od

41 — Mycotoxin binders pr 2309.90.10

41. Mycotoxin binders pr 2309.90.10 re be

42 — Pollard 2309.90.90

42. Pollard 2309.90.90 ay

43 — Standing tree 06.02

43. Standing tree 06.02 m ok

44 — Rice Bran 2302.40.00

44. Rice Bran 2302.40.00 bo is

45 — Cotton cake 2306.10.00

45. Cotton cake 2306.10.00 th of rt pa

4 — Fisheries Implements

4. Fisheries Implements o .N No Implements HSC d ve r

1 — Floats for fishing nets 3926.90.10

1. Floats for fishing nets 3926.90.10 se re 7020.00.10 s ht

2 — Fishing nets 5608.11.00

2. Fishing nets 5608.11.00 rig ll

3 — Fishing vessels, factory ships and other vessels for 8902.00.00

3. Fishing vessels, factory ships and other vessels for 8902.00.00 .A a processing or preserving fishery products ni za

4 — Nylon fishing twine

4. Nylon fishing twine an fT

5 — Outboard engine 8407.21.00

5. Outboard engine 8407.21.00 to en

6 — Fishing hooks, reels and lines 9507.20.00

6. Fishing hooks, reels and lines 9507.20.00 m 9507.90.00 n er 9507.30.00 ov G 25 20 © 370  THE VALUE ADDED TAX ACT [CAP. 148 R.E. 2023]

5 — Bee-keeping implements

5. Bee-keeping implements No. Implements HSC

1 — Bee hive Any Description

1. Bee hive Any Description

2 — Protective bee keeping jacket veil Any Description

2. Protective bee keeping jacket veil Any Description . AG

3 — Mask 6307.90.00

3. Mask 6307.90.00 O

4 — Honey strainer Any Description

4. Honey strainer Any Description of n io

5 — Bee hive smoker Any Description

5. Bee hive smoker Any Description s is m er

6 — Diary equipment

6. Diary equipment tp ou ith No. Implements HSC w ed

1 — Hay making machine 8433.30.00

1. Hay making machine 8433.30.00 ut rib

2 — Aluminium and Stainless-Steel Milk Cans 7310.29.90

2. Aluminium and Stainless-Steel Milk Cans 7310.29.90 st 7310.10.00 di or 7612.90.90 ed

3 — Milking machines 8434.10.00

3. Milking machines 8434.10.00 uc od

4 — Homogenizer, Butter churn, milk pr 8434.20.00

4. Homogenizer, Butter churn, milk pr 8434.20.00 re pasteurizer be

5 — Cream separator 8421.11.00

5. Cream separator 8421.11.00 ay m

6 — Milk plate heat exchanger 8419.50.00

6. Milk plate heat exchanger 8419.50.00 ok bo

7 — Milk hose 3917.31.00,4009.12.0

7. Milk hose 3917.31.00,4009.12.0 is 0,4009.32.00 th of

8 — Milk pump 8413.60.00,8413.70.0

8. Milk pump 8413.60.00,8413.70.0 rt pa 0,8413.81.00 o .N

9 — Heat insulated cooling tanks 8419.89.00,7309.00.0

9. Heat insulated cooling tanks 8419.89.00,7309.00.0 d ve 0,7310.00.00 r se

10 — Milk storage tanks Any Description

10. Milk storage tanks Any Description re s ht 11 Dairy packaging materials 3922.30.00 rig 4819.10.00 ll .A 4819.20.10 a 4819.20.90 ni za an 7. fT Medicine or pharmaceutical products to en

1 — Essential Human and veterinary medicine, drugs, medical equipment

1. Essential Human and veterinary medicine, drugs, medical equipment n m and packaging material which have been approved by the responsible er Minister. ov G Provided that, the packaging material is specifically designed for 25 packing pharmaceutical products. 20 ©

2 — Food supplements or Vitamins supplied to the Government

2. Food supplements or Vitamins supplied to the Government. 371  THE VALUE ADDED TAX ACT [CAP. 148 R.E. 2023]

8 — Articles designed for people with special needs

8. Articles designed for people with special needs No. Articles HSC

1 — Orthopaedic appliances, including crutches, surgical belts 90.21

1. Orthopaedic appliances, including crutches, surgical belts 90.21 and trusses, splints and other fracture appliances, artificial parts of the body, hearing aids and other appliances . AG which are worn or carried, or implanted in the body, to O compensate for a defect or disability excluding other items of under HSC 9021.90.00 n sio

2 — White cane for blinds or visually impaired

2. White cane for blinds or visually impaired is m er

3 — Spectacle for correcting vision 9004.90.10

3. Spectacle for correcting vision 9004.90.10 tp ou

4 — Contact lenses 9001.30.00

4. Contact lenses 9001.30.00 ith w

5 — Spectacle lenses of glass 9001.40.00

5. Spectacle lenses of glass 9001.40.00 ed

6 — Spectacle lenses of other materials

6. Spectacle lenses of other materials ut 9001.50.00 rib st

7 — Sunscreen and sun tan preparation used by albino 33.04

7. Sunscreen and sun tan preparation used by albino 33.04 di or

8 — Braille 8472.90.00

8. Braille 8472.90.00 ed uc

9 — Mechanically propelled tricycle for carriage of disabled 8713.90.00

9. Mechanically propelled tricycle for carriage of disabled 8713.90.00 od persons re pr

10 — Motor vehicle specifically designed for use by persons with 87.03

10. Motor vehicle specifically designed for use by persons with 87.03 be disability ay m ok

9 — Education material

9. Education material bo is No. Article HSC th of

1 — Dictionary and encyclopedia 4901.91.00

1. Dictionary and encyclopedia 4901.91.00 rt pa

2 — Printed books 4901

2. Printed books 4901 o .N

3 — Newspapers 4902.10.00

3. Newspapers 4902.10.00 d ve 4902.90.00 r se re

4 — Children pictures, drawing or colouring 4903.00.00

4. Children pictures, drawing or colouring 4903.00.00 s ht

5 — Maps and hydrographic charts 4905.99.00

5. Maps and hydrographic charts 4905.99.00 rig ll .A

6 — Examination question papers 4911.99.20

6. Examination question papers 4911.99.20 a ni

7 — Instructional charts and diagrams 4911.99.10

7. Instructional charts and diagrams 4911.99.10 za an

8 — Examination answer sheet 4011.00.90

8. Examination answer sheet 4011.00.90 fT to en

10 — Health care

10. Health care n m er

1 — A supply of medical, dental, nursing, convalescent, rehabilitation,

1. A supply of medical, dental, nursing, convalescent, rehabilitation, ov G midwifery, paramedical, optical, or other similar services where the 25 services are provided: 20 (a) by or in an institution approved for the provision of those services by © the Government; and (b) by, or under the supervision and control of, a person who is registered as being qualified to perform that service under Tanzania laws, or whose qualifications to perform the services are recognised in Tanzania. 372  THE VALUE ADDED TAX ACT [CAP. 148 R.E. 2023]

2 — A supply of services in a nursing home or residential care facility for

2. A supply of services in a nursing home or residential care facility for children, or for aged, indigent, infirm, or disabled persons who need permanent care, if the facility is approved for the provision of those services by an appropriate Government institution.

11 — Immovable property

11. Immovable property . AG O

1 — A sale of vacant land

1. A sale of vacant land. of n io

2 — A lease, license, hire or other form of supply, to the extent that it is a

2. A lease, license, hire or other form of supply, to the extent that it is a s is supply of the right to occupy and reside in residential premises. m er

3 — A sale of immovable property, to the extent that the property relates to

3. A sale of immovable property, to the extent that the property relates to tp ou residential premises, not including: ith (a) the first sale of newly constructed residential premises; or w (b) a subsequent sale if the premises have been occupied as a residence ed for less than two years. ut rib st

4 — A sale of a house of a value not exceeding fifty million shillings by a real

4. A sale of a house of a value not exceeding fifty million shillings by a real di estate developer. or ed uc

12 — Educational services

12. Educational services od pr re A supply of services consisting of tuition or instruction for students be provided by an institution approved by the Minister responsible for ay education, being: m (a) a pre-primary, primary, or secondary school; ok bo (b) a technical college, community college, or university; is (c) an educational institution established for the promotion of adult th education, vocational training, improved literacy, or technical of education; rt pa (d) an institution established for the education or training of physically o .N or mentally handicapped persons; or d (e) an institution established for the training of sportspersons. rve se re

13 — Intermediary services

13. Intermediary services s ht rig

1 — Supply of financial services supplied free of charge

1. Supply of financial services supplied free of charge ll .A

2 — Insurance premiums for aircraft

2. Insurance premiums for aircraft a ni za

3 — Life insurance or health insurance

3. Life insurance or health insurance an fT

4 — Insurance for workers compensation

4. Insurance for workers compensation to en

5 — Crop agricultural insurance

5. Crop agricultural insurance n m

6 — Livestock farming insurance

6. Livestock farming insurance er ov G

14 — Government entity or institution

1 — A non commercial activity carried on by a Government entity or

1. A non commercial activity carried on by a Government entity or institution, except to the extent that the activity involves making supplies of goods, services or immovable property that are also supplied or able to be supplied in Mainland Tanzania by at least the person who is a non government entity. 373  THE VALUE ADDED TAX ACT [CAP. 148 R.E. 2023]

15 — Petroleum products

15. Petroleum products No Petroleum product HSC

1 — Aviation spirit 2710.12.30

1. Aviation spirit 2710.12.30

2 — Spirit type jet fuel 2710.12.40

2. Spirit type jet fuel 2710.12.40 . AG

3 — Kerosene type jet fuel (Jet A-1) 2710.19. 21

3. Kerosene type jet fuel (Jet A-1) 2710.19. 21 O

4 — Petrol (MSR and MSP) 2710.12.10 and 2710.12.20

4. Petrol (MSR and MSP) 2710.12.10 and 2710.12.20 of n io

5 — Diesel (GO) 2710.19.31

5. Diesel (GO) 2710.19.31 s is m

6 — Kerosene (IK) 2710.19.22

6. Kerosene (IK) 2710.19.22 er tp

7 — Bitumen 2713.20.00 and 2715.00.00

7. Bitumen 2713.20.00 and 2715.00.00 ou ith

8 — Liquefied petroleum and Natural gases 2711

8. Liquefied petroleum and Natural gases 2711 w ed

9 — Compressed Petroleum and Natural gases 2711

9. Compressed Petroleum and Natural gases 2711 ut rib

10 — Compressed or liquefied gas cylinders for 7311.00.00

10. Compressed or liquefied gas cylinders for 7311.00.00 st petroleum and Natural gases for cooking di or

11 — Crude oil 2709.00.00

11. Crude oil 2709.00.00 ed uc od

16 — Supply of water, except bottled or canned water or similarly

16. Supply of water, except bottled or canned water or similarly pr re presented water. be

17 — The transportation of person by any means of conveyance other

17. The transportation of person by any means of conveyance other ay m than taxi cabs, rental cars or boat charters. ok

18 — Importation of arms and ammunition, parts and accessories

18. Importation of arms and ammunition, parts and accessories bo thereof, equipment and machineries for the official use of the armed is th forces as certified by the Ministry responsible for security and defence. of rt

19 — Funeral services, for the purpose of this item funeral services

19. Funeral services, for the purpose of this item funeral services pa includes coffin, shroud, transportation, mortuary and disposal services o .N of human remains. d ve

20 — Gaming supply

20. Gaming supply. r se re

21 — Supply of solar panels, modules, solar charger controllers, solar

21. Supply of solar panels, modules, solar charger controllers, solar s ht inverter, vacuum tube solar collectors and solar battery. rig

22 — Supply of air charter services up to 30th December, 2022

22. Supply of air charter services up to 30th December, 2022. ll .A

23 — Revenue Stamps of HS Code 4907.00.90

23. Revenue Stamps of HS Code 4907.00.90 a ni

24 — Electronic cash register HS Code 8470.50.00

24. Electronic cash register HS Code 8470.50.00 za an

25 — Supply of precious metals, gemstones and other precious stones at

25. Supply of precious metals, gemstones and other precious stones at fT refineries, buying stations or Mineral and Gem Houses designated by to en the Mining Commission under the Mining Act, Cap. 123. n m

26 — A supply of aircraft lubricants of H.S Codes 2710.19.51, 2710.19.52,

26. A supply of aircraft lubricants of H.S Codes 2710.19.51, 2710.19.52, er ov 3403.19.00 and 3403.99.00 to a local operator of air transportation G

27 — A supply of double refined edible oil from locally grown seeds by a

27. A supply of double refined edible oil from locally grown seeds by a 25 20 local manufacturer from 1st July, 2022 to 30th June, 2024. ©

28 — A supply of raw materials of HS Code 2836.20.00, 2836.30.00,

28. A supply of raw materials of HS Code 2836.20.00, 2836.30.00, 2836.50.00 and packaging materials to be solely and directly used by a local manufacturer of double refine dedible oil from locally grown seeds for a period of one year from 1st July, 2022 to 30th June, 2023. 374  THE VALUE ADDED TAX ACT [CAP. 148 R.E. 2023]

29 — A supply of sisal ropes of HS Code 5607.21.00 and 5607.29.00

29. A supply of sisal ropes of HS Code 5607.21.00 and 5607.29.00

30 — A supply of locally manufactured sisal bags of HS code 6305.90.00

30. A supply of locally manufactured sisal bags of HS code 6305.90.00

31 — Supply of aircraft, aircraft engine, aircraft parts and aircraft

31. Supply of aircraft, aircraft engine, aircraft parts and aircraft maintenance o a local operator of air transportation.

32 — Supply of automobile accessories used in the conversion of motor

32. Supply of automobile accessories used in the conversion of motor vehicle fuel system to natural gas or electricity system to persons . AG engaged in the conversion of such motor vehicles. O of n sio PART II is m er tp IMPORTS EXEMPT FROM VALUE ADDED TAX ou ith Item No. Description w ed

1 — An import of goods given, otherwise than for the purposes of sale,

1. An import of goods given, otherwise than for the purposes of sale, ut rib as an unconditional gift to the State. st di

2 — An import of baggage or personal effects exempt from customs duty

2. An import of baggage or personal effects exempt from customs duty or under the Fifth Schedule of the East African Customs Management ed uc Act, 2004. od

3 — An import of goods including containers, if the goods have been

3. An import of goods including containers, if the goods have been pr re exported and then returned to Mainland Tanzania by any person be without being subjected to any process of manufacture or adaptation ay and without a permanent change of ownership, but not if at the time m when the goods were exported, they were the subject of a supply that ok bo was zero-rated under this Act or under the repealed Value Added is Tax Act. th of

4 — An import of goods shipped or conveyed to United Republic for

4. An import of goods shipped or conveyed to United Republic for rt pa transshipment or conveyance to any other country. o .N

5 — An import of goods made available free of charge by a foreign

5. An import of goods made available free of charge by a foreign d government or an international institution with a view to assisting rve the economic development United Republic. se re

6 — An import of food, clothing and shoes donated to non-profit

6. An import of food, clothing and shoes donated to non-profit s ht organisation for free distribution to orphanage or schools for rig children with special needs in Mainland Tanzania. ll .A a

7 — Import of goods by non-profit organisation for the provision of

7. Import of goods by non-profit organisation for the provision of ni za emergency and disaster relief, and where such goods are capital an goods, the goods shall be handled to the National Disaster fT Committee upon overtion, completion or diminishing of the to disaster. en m

8 — An import of goods by the religious organisation for the provision of

8. An import of goods by the religious organisation for the provision of n er health, education, water, religious services in circumstances that, if ov G services are supplied- 25 20 (a) without fee, charge or any other consideration in a form of © fees; or (b) on payment of any consideration, the fees or charges does not exceed fifty percent of the fair market value. 375  THE VALUE ADDED TAX ACT [CAP. 148 R.E. 2023] Item No. Description

9 — An import of goods that is exempt under an agreement entered

9. An import of goods that is exempt under an agreement entered into between the Government of the United Republic and an international agency listed under the Diplomatic and Consular Immunities and Privileges Act, Cap. 356. . AG

10 — An import of goods by a registered and licensed explorer or

10. An import of goods by a registered and licensed explorer or O prospector for the exclusive use in oil, gas or mineral exploration of or prospection activities to the extent that those goods are eligible n io for relief from customs duties under the East African Customs s is Management Act, 2004. m er

11 — An import of railway locomotive, wagons, tramways and their parts

11. An import of railway locomotive, wagons, tramways and their parts tp ou and accessories by a registered railways company, corporation or ith authority. w ed

12 — An import of fire fighting vehicles by the Government

12. An import of fire fighting vehicles by the Government. ut rib

13 — An import of laboratory equipment and reagents by education

13. An import of laboratory equipment and reagents by education st di institution registered by the Ministry responsible for education to be or used solely for educational purpose. ed uc

14 — An import of CNG plants equipments, natural gas pipes,

14. An import of CNG plants equipments, natural gas pipes, od transportation and distribution pipes, CNG storage cascades, CNG pr special transportation vehicles, natural gas metering equipments, re be CNG refueling of filling, gas receiving units, flare gas system, ay condensate tanks and leading facility, system piping and pipe rack, m condensate stabiliser by a natural gas distributor. ok bo

15 — Firefighting equipment

15. Firefighting equipment. is th

16 — An import of machinery of HS Codes 8479.20.00, 8438.60.00,

16. An import of machinery of HS Codes 8479.20.00, 8438.60.00, of 8421.29.00, 8419.89.00 by a local manufacturer of vegetable oils for rt pa exclusive use in manufacturing vegetable oil in Mainland Tanzania. o .N

17 — An import of machinery of HS Code 8444.00.00, 8445.11.00,

17. An import of machinery of HS Code 8444.00.00, 8445.11.00, d 8445.12.00, 8445.13.00, 8445.19.00, 8445.20.00, 8445.30.00, rve 8445.40.00, 8445.90.00, 8446.10.00, 8446.21.00, 8446.29.00, se re 8446.30.00, 84.47, 8448.11.00, 8448.19.00, 8449.00.00, 8451.40.00 s or 8451.50.00 by a local manufacturer of textiles for exclusive use in ht rig manufacturing of textiles in Mainland Tanzania. ll .A

18 — An import of machinery of Chapter 84 and Moulds by a local

18. An import of machinery of Chapter 84 and Moulds by a local a ni manufacturer of pharmaceutical for exclusive use in manufacturing za pharmaceutical products in Mainland Tanzania. an fT

19 — An import of machinery of HS Code 8438.50.00 and 8453.10.00 by

19. An import of machinery of HS Code 8438.50.00 and 8453.10.00 by to a local manufacturer of hides and skins; and a registered abattoir en m for exclusive use of skinning, dehiding and leather processing in n er Mainland Tanzania duly certified by the Ministry responsible for ov livestock or fishery G 25

20 — Import of ambulance of HS Code 8703.90.10 by a registered health

20. Import of ambulance of HS Code 8703.90.10 by a registered health 20 facility other than a pharmacy, health laboratory or diagnostic © centre.

21 — An import of refrigerated containers of HS Code 8418.69.90 by a

21. An import of refrigerated containers of HS Code 8418.69.90 by a person engaged in horticulture for exclusive use in horticulture in Mainland Tanzania. 376  THE VALUE ADDED TAX ACT [CAP. 148 R.E. 2023] Item No. Description

22 — An import of grain drying equipment of HS Code 8419.34.00 by

22. An import of grain drying equipment of HS Code 8419.34.00 by a person engaged in agriculture for exclusive use in agriculture in Mainland Tanzania.

23 — An import of aircraft lubricants, airline tickets, brochures, leaflet,

23. An import of aircraft lubricants, airline tickets, brochures, leaflet, . AG calendars, diaries, headed papers and airline uniforms engraved or O printed or marked with the airline logo imported by a designated of airline under a Bilateral Air Services Agreement between the n io Government of United Republic and a foreign government. s is m

24 — An import of cold rooms of HS Code 9406.10.20, 9406.20.20,

24. An import of cold rooms of HS Code 9406.10.20, 9406.20.20, er 9406.90.20 and refrigerated truck of HS Codes 8704.21.90; tp ou 8704.22.90, 8704.23.90, 8704.31.90, 8704.32.90, 8704.90.90 by a ith person engaged in livestock, fishery or agriculture duly certified by w the Ministry responsible for livestock, fishery or agriculture. ed ut

25 — An import of Contactless Smart Cards and Consumables of HS

25. An import of Contactless Smart Cards and Consumables of HS rib st Code 8523.52.00 by the National Identification Authority. di or

26 — An import of raw materials of HS Code 2528.00.00, 2710.99.00,

26. An import of raw materials of HS Code 2528.00.00, 2710.99.00, ed 3505.20.00 and equipment and machineries of Chapters 84 and 85 uc to be solely and directly used in manufacturing of fertilisers duly od pr certified by the Ministry responsible for industries. re be

27 — An import of soil testing equipment of HS Code 9031.80.00,

27. An import of soil testing equipment of HS Code 9031.80.00, ay 9027.81.00 and 9027.89.00 as certified by the Ministry responsible m for agriculture ok bo

28 — An import of moisture meter of HS Code 9031.80.00, rain gauge

28. An import of moisture meter of HS Code 9031.80.00, rain gauge is for weather stations of HS Code 9015.80.00, PH meters of HS Code th 9031.80.00 tissue culture equipment of HS Code 8419.89.00 and of rt tension meters of HS Code 9031.80.00 as certified by the Ministry pa responsible for agriculture. o .N

29 — An import of meteorological equipment and machinery by the

29. An import of meteorological equipment and machinery by the d ve Tanzania Meteorological Authority. r se re

30 — An import of raw materials of HS Code7208.39.00, 3810.90.00,

30. An import of raw materials of HS Code7208.39.00, 3810.90.00, s 3401.19.00, 7904.00.00, 4016.93.00, 8481.10.00 and 8309.90.90 ht rig by a manufacturer of gas cylinders upon signing a performance ll .A agreement with the Government of the United Republic a ni za an fT to en n m er ov G 25 20 © 377  © 20 25 G ov er nm en to fT an za ni a.A ll rig ht s re se rve d.N o pa rt of th is bo ok m ay be re pr od uc ed or di st rib ut ed w ith ou tp er m is s io n of O AG .

The Value Added Tax Act, Chapter 148 [Principal Legislation], Revised Edition 2023

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