VAT on Digital Service in Zanzibar

The Zanzibar Revenue Authority (ZRA) wishes to inform all non-resident suppliers of electronic services and foreign tour operators that the implementation of Value Added Tax (VAT) on their services rendered in Zanzibar is now in effect. The following information provides guidance on registration, filing, and payment procedures in accordance with the law.

The Finance Act No. 4 of 2024 amended the Value Added Tax Act No. 4 of 1998 by introducing Section 4A and 4B , which require non-resident persons who carries on economic activities in Zanzibar without having a fixed place in Zanzibar to register and liable to pay for VAT

To support the implementation of these provisions, The Tax Administration Procedures (Procedures of simplified Registration for Non-resident Suppliers of Electronic Service and Foreign Tour Operators) Regulations, 2022 has introduced detailed guidance.

Obligation in registration and charging VAT is for all Non-resident Suppliers of Electronic Service and Foreign Tour Operators services provider of B2B as well as B2C and there is no threshold.

Registration may be processed online by access the online registration portal  and applicants are required to submit all necessary documentation, including business registration details and service agreements.

Registered non-resident suppliers are required to file VAT returns and make payments of applicable VAT amounts electronically on or before the 20th day of each month following the end of the accounting period.

The VAT rate on Non-resident Suppliers of Electronic Service and Foreign Tour Operators is 18% and input tax credit is not allowed

Non-resident Suppliers of Electronic Service and Foreign Tour Operators are exempt from using Virtual Fiscal Devices (VFD) when issuing receipts or invoices. 

contact our support team via e-mail dst.zra@zanrevenue.org for guidance on the registration process