VAT Calculator Tanzania (18%)

The Mainland standard VAT rate is 18%; exports are zero-rated (VAT Act s.5). Transport ancillary to goods in transit is also zero-rated, as is locally manufactured fertiliser until 30 June 2028 (VAT Act s.56). Since 1 July 2026, on sales to a VAT withholding agent the supplier collects 15% on goods and 12% on services, and the agent pays the rest of the 18% to TRA.

The Schedule to the VAT Act exempts agricultural implements, livestock, basic agricultural products and listed foods, medical services in Government-approved facilities, and tuition at approved schools, colleges and universities. Also exempt are life and health insurance, vacant land, residential rents, developer-sold houses up to TSh 50 million, unbottled water, funeral services and solar equipment. From 1 July 2026 to 30 June 2027, locally made garments of locally grown cotton are exempt.

Under section 38, prices that a VAT-registered business advertises or quotes must include VAT. A shop need not show the VAT in each price if a notice that prices include VAT is displayed at the entrance (or on the website) and at the till, and the receipt states the total VAT. VAT-exclusive pricing is allowed only for sales to registered businesses.