The VAT Act, empowers the Minister to grant exemption, by order published in the Gazette, to import or supply to a Government entity of goods or services to be used solely for
(I) Implementation of a project funded by: -
(a) Government; or
(b) Concessional loan or grant through an agreement between the Government of the United Republic of Tanzania and another Government, donor or lender, provided that such agreements provides for Value Added Tax exemption on such goods and services.

(a) Relief of natural calamity or disaster

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
(c) A center for persons with disabilities.

The application for this exemption shall be made within a period of not less than thirty days before the commencement of the project to the Minister by filling form No. Form No. ITX 264.01.E. Application for Tax Exemption.
Upon satisfaction with the application, the Minister issues the order in the Gazette . The applicant, who has been issued with an Order, shall then apply to the Commissioner General, for utilization of tax exemption by filling Form No. ITX.265.01. E, Application for Utilization of VAT exemption.