Is a local tax representative mandatory, or can a foreign company register for VAT independently?
There is an option for a foreign company to register independently. An amendment of the VAT Act,2014 was made to requre that where it is not practicable for a non-resident entity to appoint a tax representative due to business circumstances, a non-resident person shall apply to the Commissioner to be registered.
- How long does the entire VAT registration process in Tanzania take?
Between 3 and 5 days if you have every information and supporting documents. These are:
- name of the business including the business trading name;
- business sector, activity and sub-activity (if any) undertaken;
- certificate of incorporation;
- details of the contact person for tax matters;
- registered physical address of the business;
- website or uniform resource locator of the supplier through which the business is conducted;
- details of social media accounts; and
- any other information as the Commissioner General may require.
- Are digital service sellers required to submit any additional reports besides VAT returns?
No additional reports. VAT and Income Tax returns are filed monthly i.e on or before the 7th day of the month following the month of the related return.
- Are foreign digital service providers, without a local establishment, required to pay any other taxes besides VAT?
Yes. Income Tax at 2% of the gross payment through single installment where a a non resident person receives a payment that has a source in the United Republic from an individual, other than a payment made in the course of conducting business, in respect of an electronic service. This payment is made in a calendar month. There is also a requirement to file a return.
- Are there any specific requirements for issuing electronic invoices for foreign digital service providers?
No requirement for issuing electronic fiscal receipts/invoices.