Value Added Tax (VAT), under The Value Added Tax Act No. 4 of 1998
• VAT registration threshold: Taxable turnover TZS 100. 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 | 15% |
| Importation of taxable goods and services to Zanzibar | 15% |
| Exports of goods and services from Zanzibar | 0% |
