VAT Zero Rated Exports Tanzania: Goods, Services, Proof and Refunds

VAT zero rated exports in Tanzania follow one idea: VAT is a tax on consumption in Mainland Tanzania, so goods and services consumed abroad leave at 0%. The rate is easy. The difficulty sits in the proof, in services that look foreign but are enjoyed locally, and in the refund that an exporter depends on for cash flow.

This guide covers Mainland Tanzania, with Zanzibar treated separately.

What the law says

The governing law is the Value Added Tax Act, Cap. 148 R.E. 2023, as published by TRA. We checked the section numbers against that copy and against the identical R.E. 2023 copy on the Tax Revenue Appeals Board site. The revision renumbered everything from section 56 onwards, so older guides cite different numbers.

Part IV(b) of the Act, headed "Supplies for use outside the United Republic", holds the zero-rating rules. The provisions an exporter meets most often are these:

• Section 55 zero-rates a supply of goods that are exported, as "export" is defined in section 2. Section 55(3) removes the zero rate if the goods are re-imported into Mainland Tanzania.
• Section 61 zero-rates goods and services for international transport, including aircraft and ship stores and ancillary transport services for goods in transit.
• Section 62 zero-rates services related to land abroad, services performed on goods abroad, and services both performed and received outside the United Republic.
• Section 64 zero-rates other services where the customer is outside the United Republic and uses or enjoys the services there.

The standard rate under section 5 is 18% (register F0239). The zero rate applies to exports, international transport, ship and aircraft stores, services used abroad and IP used abroad (register F0241). Exported goods also carry no export tax unless they appear in the Export Tax Act Schedule or pay the cashew levy (register F0343).

A zero-rated supply is still a taxable supply, so the exporter claims input tax under sections 72 to 74. An exempt supply gives no input tax credit.

The Finance Act, 2026 did not amend sections 55, 61, 62, 64, 70 or the refund sections.

Who should read this

This guide is for anyone in Mainland Tanzania who sells to buyers abroad or to the islands:

• Exporters of crops, minerals, fish and manufactured goods.
• Consultants, software firms, call centres and engineers billing foreign clients for services.
• Transporters, clearing agents and warehouses handling transit cargo.
• Suppliers to companies operating in export processing or special economic zones.
• Mainland businesses selling to customers in Zanzibar.

Only a VAT-registered person can zero-rate. Registration is compulsory at TZS 200 million of turnover in 12 months or TZS 100 million in six months (register F0242). Smaller exporters should ask TRA about registering as intending traders (register F0243).

When is a sale of goods an export for VAT?

Section 2 defines "export" as the removal of goods from a place in Mainland Tanzania to a place outside the United Republic. Three consequences follow from those words.

First, the goods must physically leave. Delivery in Dar es Salaam to a foreign buyer's local agent is not enough.

Second, the destination must be outside the United Republic. Zanzibar is part of the United Republic, so a shipment to Unguja or Pemba is not an export under this definition.

Third, the Act gives a presumption. In the absence of proof to the contrary, evidence of consignment or delivery to an address outside the United Republic is sufficient. So is evidence of delivery to the owner, charterer or operator of the ship, aircraft or other conveyance carrying the goods out.

Section 45(2) treats goods dispatched abroad as a supply made in Mainland Tanzania, which is why section 55 is needed to zero-rate it.

The Act text we read sets no fixed number of days within which the goods must leave. A long gap between invoice and shipment still invites questions.

When are services zero-rated as exports?

Services are harder, because nothing crosses a border. The Act therefore asks where the services are used and enjoyed. Section 64(1) zero-rates a supply of services only where both conditions hold:

• the customer is outside the United Republic at the time of supply and effectively uses or enjoys the services outside the United Republic; and
• the services are not directly related to land in the United Republic, nor physically performed on goods situated in the United Republic at the time of supply.

Section 62 separately zero-rates services related to land abroad, work on goods abroad, and services performed and received abroad.

Which services to non-residents are still taxed at 18%?

A foreign customer does not make a service an export. Section 64(2) takes two cases out of zero-rating even where a non-resident signs the contract:

• a supply of a right or option to receive a later supply of something else in the United Republic; and
• services supplied under an agreement with a non-resident but rendered to a person in the United Republic who is not a registered person.

Section 64(1)(b) removes two more: services directly related to land in Tanzania, and services physically performed on goods in Tanzania. In practice, the following are standard-rated even when the invoice goes abroad:

• A valuation or survey of a plot in Arusha for a foreign investor, because it relates to land here.
• Repairs in Mwanza to equipment owned by a Kenyan company, because the goods are in Tanzania when the work is done.
• Training delivered in Dodoma to a foreign principal's unregistered local distributor, because the services are rendered to an unregistered person here.
• Hotel rooms, tours and meals for foreign visitors, because the visitor enjoys them in Tanzania.

The reverse case is also common. A foreign supplier who sells services to you is not exporting into Tanzania for your purposes; you may owe reverse-charge VAT. Our guide to VAT on imported services covers that side.

What evidence does TRA expect for zero-rated exports?

The zero rate is only as good as the file behind it. The Act's own presumption rests on evidence of consignment or delivery abroad. TRA's VAT page adds that supplies consumed or enjoyed outside Mainland Tanzania are zero-rated "upon proof".

On the customs side, TRA's export procedures page describes the TANCIS process. A licensed clearing agent lodges the invoice, packing list, TIN certificate and any export permits online, and TRA approves the shipping line's export manifest.

For refunds, TRA's VAT page asks for a certificate of genuineness from an auditor registered with NBAA who is also a TRA-registered tax consultant, plus a completed checklist. Regular repayment traders, a status many exporters hold, also attach bills of entry, transport documents, EFD receipts or invoices and the auditor's working papers.

The independent MWEBESA Law Group note on tax refunds (27 January 2025) adds bills of lading, road consignment notes and landing certificates, citing pre-2023 section numbers.

We found no rule in the Act text that payment must arrive in foreign currency for a zero rate. A foreign remittance is still the cleanest single proof that the customer is abroad, so keep it. We could not open the VAT (General) Regulations, 2015 (GN 225 of 2015) this session, so any regulation-level evidence list is a figure to confirm.

An export sale still needs a fiscal receipt under the Tax Administration Act. See our EFD receipt rules.

Are supplies to Zanzibar treated as exports?

No. Zanzibar is inside the United Republic, so a sale from Dar es Salaam to Stone Town fails the section 2 definition of export. Zanzibar runs its own VAT under the Zanzibar Revenue Authority, so the Act has special rules instead.

Section 3(4) of the Mainland Act deals with a supply made directly by a Mainland taxable person to a taxable person in Zanzibar. TRA collects the VAT and remits it to the Zanzibar Revenue Board, now ZRA. TRA's page on goods between Mainland and Zanzibar states the same rule.

The VAT (General) (Amendment) Regulations, 2021, GN 714 of 2021, set the paperwork. Regulation 36B provides a refund procedure for goods supplied to persons registered under Zanzibar VAT law. The application goes to the Commissioner General on Form ITX653.01.E, monthly in arrear. It carries an EFD tax invoice showing the customer's name, TIN and VAT number, a landing certificate, the IM 9 customs form and a transire discharge report.

Regulation 36B mentions both the Commissioner General and the Zanzibar Revenue Board, so confirm the refund route with TRA.

The 2019 text of the Act on TanzLII had a section 55A, zero-rating locally manufactured goods sold to a Zanzibar-registered taxable person. The R.E. 2023 copy has no equivalent section. We could not confirm which Finance Act removed it, so do not cite section 55A as current law.

For goods moving from Zanzibar to the Mainland, section 3(3) lets TRA collect any rate difference.

The Zanzibar rows come from the ZRA VAT page. A Zanzibar exporter deals with ZRA, not TRA. See our Zanzibar and Mainland VAT comparison.

How are transit, EPZ and SEZ supplies treated?

Transit cargo. Section 61(3) zero-rates international transport services and ancillary transport services for goods in transit, where they form part of an international transport service. TRA's VAT page adds that goods stored at a port, airport or declared customs area for up to 30 days awaiting onward transport qualify.

The BizLens reported on 6 August 2026 that TRA issued a public ruling confirming these zero rates. It said the Commissioner of Customs may extend storage by up to 21 days and listed records to keep, such as TANSAD records and bills of lading. We have not seen the ruling itself. Our guides to VAT on international transport and transit goods go further.

EPZ and SEZ suppliers. A sale to a company inside a Mainland zone is not an export. The goods do not leave the United Republic, so section 55 does not apply. Any relief comes from an exemption, which is a different mechanism with different paperwork.

TISEZA's conditions and incentives sheet for SEZ and EPZ lists a VAT exemption on goods and services directly related to production in the zone. The same sheet records that this exemption has been "denied due to law misinterpretation". The ISEZ Regulations, GN 466 of 2025, charge a TISEZA facilitation fee of 5% of the VAT exempted on locally purchased goods (register F0382).

Charge 18% unless the buyer produces a valid exemption instrument. See our note on the Investment and Special Economic Zones Act 2025.

How do exporters recover input VAT?

An exporter charges 0% on most sales but pays 18% on its costs, so its return often shows a negative net amount. We read the operative refund text in the 2019 version and matched each section to its R.E. 2023 number.

• Carry forward, section 85. The negative amount is carried into later periods. After six consecutive periods, a refund may be claimed if the amount meets the prescribed minimum.
• Refund without carry forward, section 86. A person may claim at once where 50% or more of turnover is or will be from zero-rated supplies. The same applies where at least half of input tax relates to zero-rated supplies, or the Commissioner General accepts the business regularly runs at a negative amount.

Section 88 governs the application. The 2019 text requires the prescribed form and supporting information, within three years after the end of the tax period concerned. The Commissioner General must decide within 90 days and give written reasons for a refusal or reduction. The refund is not paid until all returns are filed, and it may first be set against other tax debts.

TRA's Taxes and Duties at a Glance 2025/26 (item 34) adds payment within 14 days of the decision (register NEW-02-23). TRA's VAT page says late refunds earn interest at the central bank's commercial lending rate. The independent PwC Worldwide Tax Summaries (reviewed 9 September 2026) confirms that exporters may apply to claim monthly and that each claim needs an auditor's certificate.

Two timing rules limit the credit itself. Section 73(2) bars input tax after six months from the date of the tax invoice or fiscal receipt (register F0245). Section 70(1) requires the return by the 20th of the following month, nil returns included. Our full guide to the VAT refund process covers audits, offsets and follow-up.

Worked example: an exporter's October 2026 VAT return

Kilima Produce Ltd is a fictional VAT-registered Mainland avocado exporter that sells rejects locally. Its October 2026 figures are illustrative, at an assumed TZS 2,500 to the US dollar.

Allowable input tax is 72,000,000 plus 18,000,000 plus 10,800,000, which is TZS 100,800,000. Against output tax of TZS 9,000,000, the net amount is a negative TZS 91,800,000.

Zero-rated sales are 1,200 million out of total turnover of 1,250 million, or 96%. That clears the 50% test in section 86, so Kilima need not wait six periods. It files the October return by 20 November 2026 and lodges a refund claim with the auditor's certificate and export documents.

If TRA receives a correct application on 20 November 2026, the 90-day decision period ends on 18 February 2027. Payment within 14 days of a decision on that last day would arrive by 4 March 2027. TRA may audit first.

Now take the downside. Suppose Kilima cannot show the export manifest for half the shipments. TRA may treat USD 240,000 of sales as standard-rated local sales. On the tax fraction of 18/118, that adds about TZS 91,525,424 of output tax. The zero-rated share also falls to 48%, below the section 86 test. The refund of TZS 91.8 million all but disappears, before any penalty or interest.

Common traps that cost exporters their refund

• Zero-rating sales to Zanzibar. Under the R.E. 2023 text, a sale to the islands is not an export. Use the section 3(4) route and GN 714 of 2021.
• Missing the six-month window. Input tax on an invoice older than six months is lost, however genuine.
• Weak customs trail. A bill of lading without an approved TANCIS export record, or a manifest that does not match the invoice, invites an assessment.
• Old section numbers. Citing sections 81 to 84 for refunds in a 2026 letter to TRA cites the pre-2023 numbering. Use sections 85 to 88.
• Withholding VAT confusion. Withholding agents deduct VAT on local standard-rated sales, not exports. See our withholding VAT guide.

What it costs: government charges and Zatra's fee

Keep two cost buckets apart. Government charges are paid at the official rate directly to the authority, on a GePG control number. Zatra's professional fee is a separate invoice and never includes or marks up a government charge.

VAT is 18% on taxable local supplies (F0239) and 0% on exports (F0241, F0343). Where a zone exemption applies, TISEZA's facilitation fee is 5% of the VAT exempted on local purchases (F0382). Customs clearing agents' fees are private charges, with minimums set by TASAC order (F0384). The auditor's certificate of genuineness is a private professional cost as well.

What to do now

1. Map every sales stream. Note where each is consumed and which section zero-rates it.
2. Fix the evidence file. For every export invoice, link the TANCIS record, approved manifest, transport document and payment proof before the return is filed.
3. Test service contracts. Check that the customer is outside the United Republic and that no land, goods or unregistered local person sits in the delivery chain.
4. Separate Zanzibar sales. Code island customers apart from foreign buyers and follow the GN 714 of 2021 paperwork.
5. Choose the refund route. If zero-rated sales are 50% or more of turnover, prepare a section 86 claim with the auditor's certificate.
6. Track the clock. Diary the 90-day decision and 14-day payment points, and follow up in writing.
7. Escalate disputes properly. If TRA refuses or reduces a refund, object under the Tax Administration Act. Appeals to TRAB, and any seizure or prosecution, go to an advocate.

Key dates and deadlines

How Zatra helps

Zatra reviews an exporter's sales streams against sections 55, 62 and 64, then builds the evidence file TRA expects. We prepare monthly returns and refund claims, coordinate the auditor's certificate, and follow the claim through TRA's review. Our TIN and VAT registration service handles registration and changes, and our tax and regulatory compliance service runs the monthly cycle.

Where TRA audits or rejects a claim, our TRA audit and dispute support prepares the response. Shipping documentation runs through our import and export compliance service. For a refund appeal to TRAB, a seizure or a prosecution, we work with an advocate, who represents you. Zatra does not decide or guarantee any authority's outcome. To start, contact Zatra with your last three VAT returns and a sample export file.

See also what it costs to export from Tanzania and our VAT return guide.

Sources and status

Accurate as at 5 November 2026.

• The Value Added Tax Act, Cap. 148 R.E. 2023. Tanzania Revenue Authority, R.E. 2023 (2025 print). Accessed 5 Nov 2026.
• The Value Added Tax Act, Cap. 148 R.E. 2023. Tax Revenue Appeals Board, R.E. 2023 (2025 print). Accessed 5 Nov 2026.
• Value Added Tax Act, 2014, version of 30 November 2019. TanzLII, 2019. Accessed 5 Nov 2026.
• Value Added Tax (VAT). Tanzania Revenue Authority, undated page, 2026. Accessed 5 Nov 2026.
• VATable goods between Mainland and Zanzibar. Tanzania Revenue Authority, undated page. Accessed 5 Nov 2026.
• Value Added Tax (General) (Amendment) Regulations, 2021, GN 714. Ministry of Finance and Planning, published 8 October 2021. Accessed 5 Nov 2026.
• The Finance Act, 2026. Tanzania Revenue Authority, assented 30 June 2026. Accessed 5 Nov 2026.
• Taxes and Duties at a Glance 2025/26. Tanzania Revenue Authority, 2025. Accessed 5 Nov 2026.
• Export procedures. Tanzania Revenue Authority, undated page, 2026. Accessed 5 Nov 2026.
• Value Added Tax (VAT). Zanzibar Revenue Authority, undated page, 2026. Accessed 5 Nov 2026.
• Conditions and incentives for SEZ and EPZ. TISEZA, 2025. Accessed 5 Nov 2026.
• Tanzania: Other taxes. PwC Worldwide Tax Summaries, reviewed 9 September 2026. Accessed 5 Nov 2026.
• TRA clarifies zero-rated VAT treatment for international transport services. The BizLens, 6 August 2026. Accessed 5 Nov 2026.
• Understand tax refunds in Tanzania. MWEBESA Law Group, 27 January 2025. Accessed 5 Nov 2026.

Figures to confirm before you act

• The export evidence list in the VAT (General) Regulations, 2015, GN 225 of 2015, and any later amendments.
• The R.E. 2023 wording of sections 85 to 88, including the prescribed minimum refund amount.
• The current refund route under regulation 36B for goods sold to Zanzibar-registered buyers.
• The text and reference number of TRA's August 2026 public ruling on international transport.
• Whether a zone buyer's VAT exemption instrument is valid for the specific purchase.
• The exchange rate rule TRA applies to foreign-currency export invoices.
• The objection time limit and any deposit under the Tax Administration Act before filing.

This article is general information based on official sources available at the date of publication. It is not legal, tax or financial advice. Laws and notices change. Verify with the issuing authority or consult Zatra before acting.