Tanzania: Electronic Devices Boost VAT Collection


25 April 2013

TANZANIA Revenue Authority (TRA) has recorded an increase in Value Added Tax (VAT) under the use of Electronic Fiscal Devices (EFDs), it has been learnt.

The TRA Deputy Commissioner Domestic Revenue Department, Ms Generose Bateyunga, said that the authority recorded an increase of 23 and 9.6 per cent VAT in 2010/11 and 2011/12 financial years respectively. She made the revelation in Dar es Salaam yesterday at a one-day workshop to hotels and restaurant business people in the city on the use of EFDs and its importance. Introduced in July 2010 in the country to VAT registered operators, EFDs system will be officially be launched in May 15, this year, by the TRA Commissioner General. The system is expected to include VAT non-registered traders with sales amounting to 40,000m/- per year.

“After the official launch of devices, all traders will be required to register and use the devices as per EFDs regulations,” she said, adding that legal measures will be taken to traders who will not heed the policy.

Ms Bateyunga said that traders who will be spotted not using the EFDs without necessary reasons will be required to pay 3m/-.

“For those who will destroy the devices for the aim of evading taxes will pay twice the amount of taxes evaded or 4m/- plus the evaded taxes,” she noted.


FDs were introduced to VAT registered traders under the 2010 Value Added Tax (Electronic Fiscal Device) Regulation – Subsidiary Legislation, enshrined in the Finance Act 2010 and published on the Government Notice No 192 in May, 2010.

In another development, Ms Bateyunga called on customers to develop habits of demanding receipts in every purchase towards strengthening tax administration. The TRA Principal Officer, Mr Hamis Lupenja, said that the use of FDs help transmit tax information to TRA System automatically.

The system uses fiscal receipts/invoice which is unequally identifiable. “Apart from that, the system help built fiscal memory which cannot be erased by mechanical, chemical or electronic magnet interferences among other importance,” he said. He mentioned the devices as Electronic Tax Register (ETR), Electronic Fiscal Printer and Electronic (EFP) and Signature Device

Source: Tanzania Daily News (Dar es Salaam)