TAXES AND DUTIES AT A GLANCE  2017/2018 
 
1. Value Added Tax (VAT), under The Value Added Tax Act No. 4 of 1998 
 
• VAT registration threshold: Taxable turnover TZS 30. Millions and above.
• Hotels: To be registered for VAT, it should have the charging rate of atleast USD 100 and above for accommodation (BB) per person per night.
• Zero Rated Supplies:  Provided under the First Schedule of the VAT Act No. 4 of 1998
• Exempt Supplies and Imports: Provided under the Second Schedule of the VAT Act No. 4 of 1998 
• Special Relief: Provided under the Third Schedule of the VAT Act No. 4 of 1998  
DESCRIPTION OF GOODS/ SUPPLIES  
 
VAT RATES
Supply of taxable goods and services in Zanzibar   18%
Importation of taxable goods and services to Zanzibar   18% 
Exports of goods and services from Zanzibar    0% 
 
2. INFRASTRUCTURE TAX, UNDER FINANCE ACT NO. 9 OF 2015 
 
NO  DESCRIPTION OF ITEMS  TAX RATES 
 1 Guest stayed in any Hotel/Guest House in Zanzibar   USD 1 or its equivalent in Tanzania Shillings per Person per day 
 2 Passenger Embarking from Sea Port in Zanzibar to another Port in Zanzibar.     TZS 1000 per Person
3 Passenger Embarking from the Sea Port in Zanzibar to another Port in Tanzania Mainland  TZS 2000 per Person 
4 Passenger embarking from the Airports in Zanzibar to any destination in United Republic of Tanzania  TZS 2000 per person 
5 Petroleum products (Diesel and Petrol)  TZS. 100 per liter  
 
6 Purchases of electricity supply    2% of the supply net value 
 
3. STAMP DUTY, under Stamp Duty Act No. 7 OF 2017 
 
• FIRST SCHEDULE (Made under section 6 of Stamp Duty Act No 7 of 2017) 
 
• LIST OF INSTRUMENTS AND PAYMENTS