The export of goods is zero-rated if the goods are exported from a place in Mainland Tanzania to a place outside of the United Republic. Proof of export can be provided through evidence of the consignment or delivery of the goods to an address outside of the United Republic. Proof can also be provided through evidence of the delivery of the goods to the owner, charterer, or operator of a ship, aircraft, or another mode of transport that will transport the goods outside of the United Republic.
- The supply of services is zero-rated if the customer is outside of the United Republic at the time of the supply and effectively uses or enjoys the service outside of the United Republic. The services must also not be directly related to land situated in the United Republic and must not be physically performed on goods situated in the United Republic at the time of supply.
- Examples of services that are zero-rated when supplied for use outside of the United Republic include:
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- Services directly related to land outside the United Republic
- Services physically performed on goods situated outside of the United Republic
- Services performed outside of the United Republic of Tanzania at no other time or place
- Services consisting of filing, prosecuting, granting, maintaining, transferring, assigning, licensing, or enforcing intellectual property rights for use outside the United Republic
- The supply of ancillary transport services of goods in transit through Mainland Tanzania is zero-rated when:
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- The service is an integral part of the supply of international transport services.
- The service is in respect of goods stored at the port, airport, or a declared customs area for no more than 30 days while awaiting onward transport
- The Commissioner for Customs may authorise a longer period for the goods to be stored
- The supply of telecommunication services by a telecommunications service provider to a non-resident telecommunications service provider is zero-rated. This includes, but is not limited to, the termination of calls in Mainland Tanzania or the transmission of signals in or through Mainland Tanzania
- A non-resident person who supplies digital services that are consumed in the United Republic must pay a Digital Services Tax (DST). The rate of DST is 2%
- A return must be filed to the Commissioner on or before the 20th day of the month following the month to which the payment relates
- A penalty applies if a person fails to file a tax return by the due date
- A simplified VAT registration scheme applies to non-resident renders of electronic services in Tanzania, regardless of the VAT registration threshold.
- The VAT registration threshold in Tanzania Mainland is a taxable turnover of Tsh 200 million per annum or more