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%