Tanzania VAT
Calculator 2026

Standard 18%, reduced 16% (B2C digital services), zero-rated exports. Exempt: healthcare, education. Calculate VAT-inclusive, VAT-exclusive, reverse VAT.

Standard 18% Reduced 16% (Digital) TZS Β· Tanzanian Shilling Exempt: Healthcare, Education

Last verified: March 2026 Β· Source: Tanzania Revenue Authority (TRA) Β· VAT Act 2021

2026 Key Facts: Standard VAT rate is 18%. Reduced rate of 16% applies to B2C digital services and supplies. Exports are zero-rated. Exempt: healthcare, education, financial services, agricultural inputs.

Enter Amount Tanzanian Shilling Β· TZS
Calculation Mode
Add VAT
Remove VAT
Amount (TZS) TZS 100,000
TZS 10,000TZS 10,000,000
Amount
TZS
VAT Rate
Total (Inclusive)
TZS 0
VAT Breakdown
Formula Used

Calculate how much VAT the buyer withholds and remits to the tax authority on this transaction.

Tanzania VAT FAQ

Common VAT Questions

What is Tanzania's standard VAT rate?

Tanzania's standard VAT rate is 18%. A reduced rate of 16% applies to B2C digital services and specific supplies. Exports are zero-rated.

What services are VAT-exempt?

VAT-exempt services include healthcare, education, financial services, and insurance. These do not charge or collect VAT.

How do I calculate reverse VAT in Tanzania?

Divide the total by 1.18 to get the net, then subtract net from total for VAT. This calculator does this automatically in "Remove VAT" mode.

What is the VAT registration threshold?

Businesses with annual turnover exceeding TZS 100 million must register for VAT. Smaller businesses may register voluntarily.

How often are VAT returns filed?

Monthly VAT returns must be filed with TRA by the 20th of the following month. Quarterly filing may be available for smaller businesses.

Can input VAT be reclaimed?

Yes, registered VAT-paying businesses can reclaim input VAT paid on business purchases. Exempt suppliers cannot reclaim VAT.

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Official evidence

Sources & verification

This high-stakes calculator links the authority sources, method notes, test cases, and limitations used to check the numbers shown on this page.

Last verified 2026-03-01

Tanzania - high risk - AfroTools source audit

Law, regulation, or version

Last verified: March 2026 Β· Source: Tanzania Revenue Authority (TRA) Β· VAT Act 2021 2026 Key Facts: Standard VAT rate is 18%

Calculation methodology

The calculator splits the entered amount into net amount, VAT, and VAT-inclusive total using the displayed standard or custom VAT rate. Zero-rated and exempt categories are treated as decision guidance and must be confirmed against the linked authority material before filing.

Known limitations

  • Informational estimate only. It is not professional tax, legal, payroll, or filing advice.
  • Product classification, exemption, and zero-rating rules can require invoice-level review.
  • Sector-specific, regional, treaty, relief, and special-regime rules may not be fully modeled.
  • Confirm filing, registration, and remittance duties with the official authority or a qualified adviser before submission.

Test-case examples

Input: Net amount: 1,000 at the displayed standard VAT rate.
Expected: VAT equals 1,000 multiplied by the displayed rate; total equals net amount plus VAT.
Why: Confirms the core VAT-exclusive calculation path and makes the rate dependency auditable.

Input: VAT-inclusive amount with the displayed standard VAT rate.
Expected: Net amount equals total divided by 1 plus the rate; VAT equals total minus net amount.
Why: Confirms reverse VAT handling for invoices that already include tax.

Change history

  • 2026-05-02: Trust and verification panel added with source links, methodology, limitations, and report-error CTA.

AfroTools calculators are decision-support tools. Always confirm filing, registration, and remittance duties with the linked authority or a qualified local adviser.

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