Tanzania Duty Rates - Import Duty Calculator

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When importing goods into Tanzania, understanding the various duty rates and taxes is crucial for businesses and individuals alike.

Tanzania, as a member of the East African Community (EAC), adheres to specific customs regulations that affect the cost of imported goods. These regulations include import duties, value-added tax (VAT), excise duties, and other levies.

Each category of goods—ranging from raw materials to finished consumer products—faces different tax rates, which can significantly impact the total cost of importing.

This guide provides a comprehensive overview of Tanzania’s duty rates, helping you navigate the complexities of international trade within the region.

1. Value-Added Tax (VAT)

Standard VAT Rates:
- Mainland Tanzania: 18%
- Zanzibar: 15%
Special Rates:
- Banking, postal, and telecommunication services in Zanzibar: 18%

Zero-Rated: Exports of goods and certain services.
Registration Requirements:
- Mainland Tanzania: Businesses with an annual turnover of over TZS 200 million.
- Zanzibar: Businesses with an annual turnover of over TZS 100 million.
Exemptions: Businesses making only exempt supplies can’t register for VAT and can’t recover VAT on inputs.
Filing and Payment: VAT returns and payments are due monthly.

2. Mandatory VAT Registration

Applies to professional service providers, government entities, and non-residents supplying B2C electronic services in Mainland Tanzania.
Non-residents without a fixed place of business must appoint a VAT representative or apply for simplified registration.

3. VAT on Imports

VAT on imports is payable at the time of import along with customs duties.

VAT on specific capital goods can be deferred until 30 June 2026.

4. VAT on Imported Services

Registered businesses account for VAT on imported services using the “reverse-charge” mechanism if exempt supplies are 10% or more of total supplies.

5. VAT Exemptions

Agricultural and Food Products: Includes agricultural implements, inputs, food for human consumption, dairy equipment, and medicine.

Donations: Import of food, clothing, and shoes donated to non-profits.
Healthcare and Education: Includes goods imported by non-profits, religious organizations, and educational institutions.
Natural Gas: Various goods related to natural gas distribution are exempt.

Other Exemptions: Include unprocessed vegetables, insurance, certain transportation services, arms and ammunition for the military, solar energy products, and more.

6. Restrictions on Input Tax Claims

No claims on VAT for entertainment, sports club memberships, and repairs of passenger vehicles.
Claiming VAT on goods six months prior to VAT registration is allowed, with a time limit for submission.

7. Digital Service Tax

Non-residents providing electronic services must pay a 2% tax on turnover (excluding VAT).
Monthly filing is required by the 20th of the following month.

8. Customs Duty

Import Duty Rates:
- Raw materials, capital goods, medicines: 0%
- Semi-finished goods: 10%
- Finished goods: 25%
- Specified products: 35%
Preferential or nil rates for goods from SADC or EAC, subject to rules of origin.

9. Excise Duty

Applied to specific items such as beverages, fuels, and tobacco.

10. Fuel and Petroleum Levies

Fuel Levy: TZS 513 per litre.
Petroleum Levy: TZS 100 per litre.

11. Stamp Duty

1% of the consideration for instruments like conveyances and leases.

12. Railways Development Levy (RDL)

1.5% of the CIF value of goods for home consumption, with certain exemptions.

13. Payroll Taxes and Social Security Contributions

Skills Development Levy: 3.5% of payroll costs for employers with ten or more employees.
Social Security: 20% split between employer and employee.

Workers Compensation Fund: 0.5% of cash sums paid to employees.

14. Gaming Tax

Tax on gaming activities (up to 25%) and on gaming prize winnings (up to 15%).

15. Property Taxes

Based on the value of the property, with a minimum of TZS 18,000 for single-story houses.

This simplified guide outlines the key aspects of VAT, customs duties, and other taxes in Tanzania. Understanding these will help businesses and individuals comply with the local tax regulations.

Tools:

Import Duty Calculator Pakistan

FAQs

What is the standard import duty rate in Tanzania?

Tanzania’s standard import duty rate varies by product, typically from 0% to 25%. Essential goods may have a lower or zero rate, while luxury items and certain goods face higher rates. These duty rates are in place to protect domestic industries and manage import competition.

Are there goods exempt from import duty in Tanzania?

Yes, some essential items, such as medicines, agricultural inputs, and educational materials, may be exempt from import duties or have reduced rates. Exemptions are designed to promote access to essential services, support public health, and boost agriculture and education sectors in Tanzania.

What is the VAT rate applied to imported goods in Tanzania?

The VAT rate on most imported goods in Tanzania is 18%. This tax is calculated based on the CIF value (Cost, Insurance, and Freight) plus applicable import duty and any excise duties for specific items. This helps ensure uniform taxation on domestic and imported goods.

How are Tanzania’s import duties calculated?

Import duties in Tanzania are calculated on the CIF value of the goods, which includes the total cost, insurance, and freight charges. Additional taxes, like VAT, are also based on the CIF value plus import duties. This calculation ensures that all associated costs are taxed.

Do different products have different duty rates in Tanzania?

Yes, Tanzania uses a range of import duty rates based on product categories. Raw materials and essential goods typically have lower rates to encourage production and supply, while finished or luxury items face higher duties. This system supports domestic industries and limits unnecessary imports.

What are the import duty rates for vehicles in Tanzania?

Import duty on vehicles can be high, usually around 25% to 50%, depending on factors like the vehicle’s engine size, age, and category. Additional taxes may also apply to older vehicles, as Tanzania seeks to regulate emissions and support the local automotive industry.

Are there any regional trade agreements that affect Tanzania’s import duties?

Yes, Tanzania is part of the East African Community (EAC) and the Southern African Development Community (SADC). These agreements allow reduced or zero tariffs on certain imports from member countries, promoting trade within the region and strengthening economic ties among member nations.

What additional taxes or fees apply to imported goods in Tanzania?

In addition to VAT, imported goods may be subject to excise duty, especially for items like alcohol, tobacco, and petroleum. Other specific fees may also apply, depending on the nature of the goods and the industry, increasing the total import costs.

What documents are required for customs clearance in Tanzania?

Importers need several documents for customs clearance, including an import declaration form, bill of lading, invoice, packing list, and a certificate of origin if applicable. These documents help Tanzanian customs verify and assess the goods, particularly those under trade agreements.

How can I calculate the total cost of importing goods into Tanzania?

To calculate the total import cost, add the CIF value, import duty, VAT, and any excise or additional taxes. Properly classifying goods is essential to determine the correct duty rate and avoid unexpected charges during customs clearance.