TIC Guideline.pdf - Tanzania Investment Centre

• VAT Deferment: Capital goods and deemed capital goods for investment do not attract
VAT up front as the VAT is deferred to allow investor relief of tax up front. VAT deferment
on any capital goods is open to all VAT registered and non-registered traders.
• VAT Refunds: VAT refunds are made either within 30 days or 6 months from the due
date depending on the type of taxpayer. Regular repayment traders like exporters can
claim their refunds within 30 days while other traders can get their refunds after six (6)
months.
There are various goods and services that are either zero rated, such as exports or VAT
exempt, such as health supplies and tourists services. The TRA desk at TIC will provide the
list of goods and services falling under these categories as well as those with special relief.
Taxes on international trade
The Customs and Excise Department administers all taxes and duties on international trade
including import duty, excise duty on imports, and VAT on imports.
Import duty: The EAC members have adopted Common External Tariff from 1 st Jan. 2005
with a structure of 0%, 10%, and 25%. It is levied at an advalorem rate on the CIF value of
goods imported into the country.
Agreement on Customs Value (ACV): Tanzania is implementing the WTO article VII’s
ACV. It prohibits the use of arbitrary or fictitious customs values.
Excise duty: Is charged on specific or advalorem tax rate on certain imported and locally
manufactured consumer goods. Currently there are three advalorem rates 10%, 15% and
30%. Most of the locally manufactured goods are charged excise duty.
Stamp duty: Stamp duty is charged on certain legal instruments, affidavits, conveyances
& lease agreements. The rate applicable is 1% and 500 TZS for conveyance and agricultural
land respectively. The maximum stamp duty rate for registration of property for security or
mortgage is 10,000 TZS.
Motor vehicle: Transfer of motor vehicle costs 50,000 TZS. The motor vehicle registration
and annual license fees vary depending on the engine cubic capacity of the cars.
Import procedures:
All transactions on imports, exports and transits are handled through the Customs Service
Centre (CSC)
Chart: Import procedures/lodgment procedures at the CSC
TISCAN
Direct Trader Input (DTI)
Classification; valuation; inspection;
control number
Data input; self assessment; print out
Bank
Payment of taxes/ processing fee;
receipt
Clearance office
Signed print out customs declaration
(i.e. TANSAD); attachment docs;
release order
TISCAN: Is a private company contracted by TRA to provide destination inspection (DI)
services.
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