The Tanzania Revenue Authority has issued a mandatory Notice under Section 11 of the Tax Administration Act, [Cap 438 R.E.2023]. The Notice enjoins TRA officers to Administer VAT on International transport services in line with the ruling dated 6th August,2026.
Transport companies have now gained the right to zero rate their services as a consequence of the notice as they do not need to charge VAT at 18% on qualifying services. Lead transporters and subcontractors involved in transporting goods across Tanzanian borders; are regarded as supplying international transport services rendering their services zero rated.
The Notice clarifies VAT treatment especially where refund claims are involved and promotes competitiveness of business. The directive increases the requirement of documentation to lead transporters including documents such as invoices, packaging lists, bill of lading, fiscal receipts, TANSAD among other documents in order to derive full benefits that emanate from the directive. The subcontractors on the other hand; must retain relevant customs licenses, C40, C28, release orders, cargo manifests and all customs documentations to enjoy the windfall that comes with the zero rating of services. The directive takes effect prospectively and not otherwise.
