The rate
The standard rate in Tanzania is 18%. Some goods and services carry reduced or zero rates and others are exempt. The difference matters: zero-rated sales still let you reclaim the tax on your purchases, exempt sales do not.
Who must register
Compulsory at TSh 200 million of turnover a year, or TSh 100 million over six months; professional service providers must register regardless of turnover. Zanzibar sets its own threshold.
How to register
Register for VAT online on the TRA Taxpayer Portal (IDRAS) within 30 days of crossing the threshold. Professionals licensed or registered under another law, and Government bodies doing business, must register whatever their turnover. A business not yet trading can register as an intending trader if it shows evidence such as contracts, tender awards, building plans, business plans or bank financing (VAT Act s.29(3)).
TRA issues a certificate showing your name, principal place of business, effective date, TIN and VAT registration number (VRN). Display it where customers can see it at your main premises, and quote the TIN and VRN on returns and official VAT documents. Report any change of name, address, business premises or activity within fourteen days (s.37).
If TRA finds you should have registered and did not, it can register you itself and notify you within 14 days. To deregister, apply within fourteen days of permanently stopping taxable sales. An intending trader that fails to start trading in time is treated as deregistered.
Filing and paying
Registered and filed with Tanzania Revenue Authority (TRA).
Monthly returns and payment are due by the 20th of the following month. A reduced 16% rate applies on the mainland to specified business-to-consumer supplies paid by bank or approved electronic payment, from 1 September 2025.