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Schedules to VAT Act Updated Jan 2013 - Tax Laws in Tanzania

Schedules to VAT Act Updated Jan 2013 - Tax Laws in Tanzania

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Tax Laws in Tanzania
Publication Number :: TLT-02 Schedules to VAT Act : : Updated 03 January 2013
Welcome to Exhale
Exhale seeks to contribute to building yourcareer in Accountancy. It compiles all learningresources in one place, from financialaccounting and reporting, to tax laws inTanzania, Management and Cost Accounting. 
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First Schedule :: Zero-Rated Supplies (Sec. 9)
Exportation of goods and services from the United Republic of Tanzania provided evidence of exportation is produced to the satisfaction of the Commissioner.2.
The supply of goods, including food and beverages, for consumptions or duty free sale on aircraftor ships on journeys to destinations outside the United Republic of Tanzania.
For the purpose of items 1 and 2:
goods are treated as exported from the United Republic of Tanzania if they are delivered or madeavailable to an address outside the United Republic of Tanzania as evidenced by documentaryproof acceptable to the Commissioner;(b)
all supplies of services are treated as being supplied in the place where the supplier belongs asdefined in subsection (4), of section 7 except supplies of services which may be treated asexported, subject to documentary proof acceptable to the Commissioner as follows
the supply of services and ancillary services relating to cultural artistic, sporting, scientific,educational, entertainment, fairs and exhibitions, including the supply of services of organizers of such activities shall be treated as being exported only when such services arephysically carried out outside the United Republic of Tanzania;(ii)
the supply of services of valuation of, and work on movable tangible property shall be treatedas being exported only when such services are physically carried out outside the UnitedRepublic of Tanzania:(iii)
the supply of ancillary transport activities such as loading and unloading, handling and similaractivities shall be treated as being exported only when such services are physically carried outoutside the United Republic of Tanzania;(iv)
the supply of services connected with immovable property, including-(a)
the services of experts and estate agents;(b)
the provision of accommodation in the hotel sector or in sectors with similar functionsuch as holiday camps or sites developed for use as camping sites;(c)
the granting of rights to use immovable property and services for the preparation andcoordination of construction work, such as the services of architects and of firmsproviding on-site supervision,shall be treated as being exported only when the immovable property is located outside the UnitedRepublic of Tanzania;(v)
the supply of services rendered by an intermediary acting in the name and on behalf of anotherperson shall be treated as being exported only when the underlying transaction is suppliedoutside the United Republic of Tanzania;(vi)
the supply of consultancy services of; engineers, lawyers, accountants and other similarconsultancy services, as well as data processing and the provision of information, shall betreated as being exported only when such services are supplied to a person other than a relatedperson who is established or has his permanent address or usually resides outside the UnitedRepublic of Tanzania, provided that such services are not related to business established or tobe established in the United Republic of Tanzania;(vii)the supply of telecommunication services, radio and television broadcasting services shall betreated as being exported only if effective enjoyment of such services takes place outside theUnited Republic of Tanzania.3.
The supply which comprises of the transport of or any service ancillary to transport of or loading,unloading, wharfage, shore handling, storage, ware housing and handling, supplied in connectionwith goods in transit through the United Republic of Tanzania, whether such services are supplieddirectly or through an agent to a person who is not a resident of the United Republic of Tanzania.4.
The supply of services which comprise the handling, parking, pilotage, salvage or towage of anyforeign going ship or aircraft while in Tanzania Mainland.5.
The supply of services which comprise of repair, maintenance, insuring, broking or management of any foreign going ship or aircraft.6.
[Deleted by Act No.10 of 2002 s.7].7.
The supply of agricultural produce intended for export by co-operative unions and community
Schedules to VAT Act
These are the schedules to be used to determinethe vatability of certain items. The basis for thepreparation used is to start with the latestschedules available which are those in the VATAct revised edition of 2009. The revisioncovers the Finance Act 2008. From thereFinance Act 2009, 2010, 2011 and 2012 wereused to amend the schedules. 
Although we have taken all reasonable care incompiling this publication, we do not acceptresponsibility for any errors or inconsistenciesthat it may contain.This publication has been prepared for quick reference. It is not a substitute for professionaladvice and action should not be taken solely onthe strength of the information containedherein.based societies registered with the Tanzania Revenue Authority.8.
The supply by a local manufacturer of tractors for agricultural use, planters, harrows, combineharvesters, fertilizer distributors, liquid or powder sprayers for agriculture, spades, shovels,mattocks, picks toes, forks and rakes, axes and other tools of a kind used in agriculture, horticultureor forestry.9.
The supply by a local manufacturer of fertilizers, pesticides, insecticides, fungicides, rodenticides,herbicides, antisprouting products and plant growth regulators and similar products which arenecessary for use in agricultural purposes.
The supply by a local manufacturer or -
fishing nets and accessories; and(b)
outboat engines for fishing.11.
The supply by a local manufacturer of veterinary medicines, drugs and equipment which havebeen approved by the Minister responsible for health upon recommendation of the Tanzania Foodand Drugs Authority.
The supply by a local Act No.6 manufacturer of -
human medicines, drugs and equipment which have been approved by the Ministerresponsible for health upon the recommendation of the Tanzania Food and Drugs Authority;(b)
articles designed for use by the blind or disabled;(c)
mosquito coils;(d)
sanitary pads.13.
The supply of sacks by local manufacturer of sacks.14.
The sypply of edible oil by a local processor of edible oil using local oil seeds.15.
The supply of layers mash, broilers mash and hay by a local manufacturer of animal or poultryfeeds.16.
(17 as per FA 2012) The supply of locally produced textile by local manufacturer using locallyproduced cotton.17.
(18 as per FA 2012) The supply of locally produced milk and milk related products produced bylocal manufacturers using locally produced milk.
Second Schedule :: Exempt Supplies and Imports (Sec. 10)
Food, crops and livestock supplies
Livestock - live cattle, swine, sheep, goats, game, poultry and other animals of a kind generallyused for human consumption.(2)
Animal products - unprocessed edible meat and offal of cattle, swine, sheep, goats, game andpoultry (including eggs), except
pate, fatty livers of geese or ducks and any other produceprescribed by the Minister by regulation.(3)
Unprocessed dairy products - cow or goat milk.(4)
Fish - all unprocessed fish, except shellfish, and ornamental fish.(5)
Unprocessed agricultural products - edible vegetables, fruits, nuts, bulbs and tubers, maize,wheat and other cereals, meal flour, tobacco, cashew nuts, coffee, tea, pyrethrum, cotton, sisal,sugarcane, seeds and plants thereof.
For the purposes of this item goods shall be regarded as unprocessed if they have undergoneonly simple process of preparation or preservation such as freezing, chilling, drying, salting,smoking, stripping or polishing.2.
None of the above can be exempted when they are supplied in the course of catering by arestaurant, cafeteria, canteen or like establishment except where such items are supplied inTanzania Peoples Defence Forces designated canteens.(6)
Locally grown tea whether in the form of made tea, blended or packed tea.(7)
Locally grown coffee whether in the form of roasted, grounded or instant coffee.
Pesticides, fertilizers, etc.
The supply of fertilizers, pesticides, insecticides, fungicides, rodenticides, herbicides, anti-sproutingproducts, and plant growth regulations, and similar products which are necessary for use in agriculturalpurposes.
Health Supplies
Health and medical services by a registered medical practitioner, optician, dentist, hospital orclinic.(2)
The supply of human medicine, drugs and equipment which have been approved by theMinister responsible for Health upon recommendation of the Pharmacy Board.(3)
[Deleted by Act No.2 of 1998, Sch.]
Articles designed for use by the blind or disabled.(5)
Mosquito coils.(6)
Sanitary pads, diapers, urine bags and hygienic bags.
Educational supplies
Educational services provided by an establishment registered by the Government.
Veterinary supplies
The supply of veterinary services by a registered veterinary practitioner.(2)
The supply of veterinary medicines, drugs and equipment which have been approved by theMinister responsible for Health upon recommendation of the Pharmacy Board.
Books and newspapers
Books, booklets, maps or charts.(2)
Newspapers, journals, magazines or periodicals.
Transport services
Transportation of persons by any means of conveyance other than air charter, taxi cabs, rentalcars, boats or boat charters.(2)
The supply of service for loading and offloading of imported goods to a locally plying shipprovided that VAT on offloading service of imported goods from foreign coming ship have beenpaid."
Housing and land
The sale or leaseof an interestin land but sha1l not include a building thereon.(2)
The selling of used or leasing of residential buildings by the Tanzania Building Agency"
Financial and insurance services
The provision of insurance services.(2)
The issue, transfer, receipt of or other dealing with money (including foreign exchange) or anynote or order for the payment of money.(3)
The provision of any loan, advance or credit.(4)
The operation of any current, deposit or savings account.(5)
The issue, allotment or transfer of ownership of equity or security such as shares in companiesand members interest in corporations and in participatory security such as unit trusts.(6)
The issue, payment, collection or transfer of ownership of any note or order of payment, chequeor letter of credit or notification of the issue of a letter of credit.(7)
The issue, drawing, acceptance or transfer of ownership of a debt or security includingdebentures, mortgages, loans and other debts in money.(8)
The supply or importation of currencies and travellers cheques to a registered bank, bureau dechange and other financial institutions.(9)
The payment of contributions by employees and employers to a social security fund or scheme.
The supply of water, except bottled or canned or similarly presented drinking water.
Funeral services
The transportation and disposal of human remains.(2)
The arrangements for disposal of the remains of the dead.
Petroleum products
Aviation spirit, spirit type jet fuel and kerosene type Jet fuel (Jet A-1)(2)
LPG gas and LPG cylinders.(3)
Petrol (MSP and MSR), diesel (GO), kerosene (IK), heavy furnace oil (HFO), industrial diesel oil(IDO) and AVGAS.(4)
Agricultural implements
Tractors for agricultural use, planters, harrows, combine harvesters, fertilizer distributors, liquid orpowder sprayers for agriculture, spades, shovels, mattocks, picks, hoes, forks and rakes, axes and othertools of a kind used in agriculture, horticulture or forestry, mowers, hay and Nascor Pellet feed makingmachine.
Tourist services
Tourist guiding, game driving, water safaris, animal or bird watching, park fees and tourist charterservices and ground transport.
Postal supplies
The supply of postage stamps.
Aircraft, aircraft engines, parts and maintenance.(2)
Lease of aircraft.
Fishing gear

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