Non-Tariff Barriers

Non-Tariff Measure

NTM classification

F71: Consumption taxes 

Date when the measure came into force

11 December 2014 

Publication where the measure is specified

Acts Supplement no 10 in the Gazette of the united Republic of Tanzania no 51 Vol 95 dated 19/12/2014 

Regulation where the measure is specified

Value added tax Act no 5 of 2014 

Country/Region applying the measure

Tanzania 

Coded list of objectives

X: For purposes n.e.s. 

Description of the measure

3. Value added tax shall be imposed and payable on a taxable supplies and taxable imports.
4 The following persons shall be liable to pay value added tax
a) In case of a taxable import. The importer
b) In case of a taxable supply that is made in mainland Tanzania, the supplier and;
c) In case of a taxable supply of imported activities. The purchaser
5 (1) the amount of value added tax payable shall be calculated by multiplying the value of supply or imports by the value added rate which shall be eighteen percent.
(2) When the supply or import is zero rated, the value added tax shall be zero percent
(3) when a supply is both exempt and zero rated, the supply shall be zero rated .
6 (1) Except as otherwise provided in the provision of this act or schedule.
a) A supply class of supplies imports or class of imports not exempt or zero rated and;
b) A person or class of persons shall not be exempted from paying value added tax imposed under this act.
(2) Notwithstanding the provisions of subsection (1), the minister may by order in the Gazette grant values added exemption on imports by the Government or supply to the Government of goods or services to be used solely for relief of natural calamity or disaster.
7. Where an agreement approved by the minister is entered into between the government of the united Republic of Tanzania and another Government or an international agency listed under diplomatic and consular immunities and privileges Act and such agreement entities a person to an exemption from tax on the person’s purchases or imports, the exemption shall be effected under this act by;
a) Exempting the import of goods by the person or
b) refunding the value added tax payable on taxable supplies made to the person upon application by the person.
8(1) the value added tax payable on a taxable import shall be paid
a) Where goods are entered for home consumption in mainland Tanzania in accordance with the provisions of this act and procedures applicable under the East African customs management Act
b) In any other case, where goods are imported for use in mainland Tanzania and in the manner prescribed by the regulations
(2)The liability to pay value added tax on a taxable import shall arise by the operation of this act and shall not depend on the making of an assessment of the commission General of the amount of value added due.
3) The Commissioner General shall collect value added tax due under this Act on a taxable import at the time of import.
4) Unless a contrary intension appears.
a) The provisions of the East African customs management act shall for the purposes of this act, apply as if the value added tax payable on taxable imports were customs duly payable under the East Africa customs management act
b) the terms used in this act in respect of an import of goods shall have the same meaning as an East African customs management act
9. The value of an import of goods shall be the sum
a) Of the value of goods for the purposes of customs duty under the East Africa customs management act, whether or not duty is payable on the import.
b) Of the amount of any customs duty payable on the import; and
c) To the extent not included under paragraph (a) or (6) in respect of

(i) The cost of insurance and freight incurred in bringing the goods to mainland Tanzania; and
(ii) The amount of any tax; levy’ fees or fiscal charge other than customs duty and value added tax payable on the import of goods
Where
a) Goods are imported after having been exported for the purpose of undergoing repair, maintenance, cleaning, renovation, modification, treatment or other physical process and
b) The form or character of the goods has not been changed since they were exported, the value of imports shall be such amount of the increase in their value as is attributed to the repair, maintenance, treatment, or physical process
57 A supply of goods made in the course of repairing, maintaining, cleaning, renovating, modifying, and treatment or otherwise physically affecting temporary imput goods shall be zero rated where-
a) The goods being supplied are attached to or become part of those temporary import goods or become unusable or worthless as a direct result of being used to repair, maintain, clean, renovate, modify, treat or otherwise physically affect the temporary input goods; and
b) The temporary input goods
(i) Are imported under a general special regime for temporary imports under the east Africa customs management act or brought temporary into mainland Tanzania for the purpose of performance of services
(ii) Rae removed for the united republic of Tanzania after services have been performed and ;
(iii) Are not used in mainland Tanzania for any purpose other than to enable the services to be performed or to enable the temporary import goods to be brought into mainland Tanzania, or outside the united republic 

Reference of the measure

Part II Para 3 -9 and 57 

Measure also domestic

Yes 

Products affected by the measure.

Description

imports 

Countries/Regions affected by the measure.