Tanzania widens VAT net

Sun 12th Jun 2016

The range of goods and services subject to 18% Tanzanian VAT is to be modified.

The proposed 2016/17 budget includes the following changes, effective 1 July 2016:

  • Financial services to be subject to VAT, with the exception of interest bearing loans
  • Tourism services are to be liable to VAT
  • Exemptions from VAT for some basic foodstuffs
  • VAT exemptions for food supplements and vitamins