Value Added Tax (VAT)

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 at least 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
Financial services (banking), insurance, telecommunications and certain digital services
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%
Financial services (banking), insurance, telecommunications and certain digital services (DST).	18%
Exports of goods and services from Zanzibar	0%