Zero Rated Exports and Exempt Supplies

In order to encourage export of locally produced goods from Tanzania all exports are zero rated under the VAT law.

Goods are regarded as exported out of the country if they are made available at an address outside Tanzania.  

VAT Refunds.

VAT refunds are made either within 30 days or 6 months from the due date depending on the type of taxpayer.  Regular repayment traders like exporters can claim their VAT refunds within 30 days. An authorized auditor must certify a VAT claim. It is important to note that, for a VAT registered trader to be able to deduct or claim the input tax, he must be in possession of fiscalised receipts or customs receipts.

VAT Exemption and special relief.

Under the VAT law, there are certain goods and services which are exempted from VAT. Such goods or services are like food crops and livestock supplies, equipments used for storage, transportation, and distribution of natural gas, health supplies and hospital equipment, education services, financial and insurance services, transportation of persons, sale or lease of an interest in land and tourist services such as guide services, game driving, water safaris, animal or bird watching, park fees and tourist charter services. Aircrafts, aircraft engines, parts and maintenance are also VAT exempt supplies.

Under the VAT law, some persons and organizations are entitled to relief from VAT within the limits and conditions subject to procedures laid down. Some persons such as importers of capital goods enjoy 45% VAT relief. Some goods are given special VAT relief at the rate of 100%.