Tanzania VAT changes

The updated Tanzanian VAT Act will extend VAT to a new range of supplies. The current Tanzanian VAT rate is 18%.

• Non-life insurance is no longer VAT exempt
• Exports are now fully VAT exempt
• Exemptions have been extended to a range of agricultural goods and supplies, education, health care and other services
• A system of import VAT deferment for imported capital goods has been introduced
• Digital and electronic services provided to consumers are now subject to VAT. This includes apps, games, software and fees to membership-based sites.