How Mainland Tanzania VAT is calculated
For a standard-rated taxable supply, add 18% VAT to the amount before VAT. To estimate the VAT inside an inclusive total, divide the total by 1.18 and subtract the result from the total.
Add VAT
Net amount × 1.18 = total including VAT
Remove VAT
Gross amount ÷ 1.18 = amount before VAT
Important Tanzania VAT limitations
The Tanzania Trade Portal and Ministry of Finance describe an 18% standard rate for Mainland Tanzania, with zero-rated and exempt treatments for qualifying supplies. Finance Act 2025 also provides a conditional 16% rate from 1 September 2025 for eligible supplies paid through a bank or approved electronic payment system; this page does not decide whether a transaction qualifies. This calculator does not determine supply classification, registration, input-tax credit or filing obligations.
Use the standard 18% result unless you have confirmed the conditional treatment with current official guidance. Read the Finance Act 2025 and current TRA implementation notices. This page does not cover Zanzibar; the Tanzania Trade Portal and Zanzibar Revenue Authority should be checked for the applicable jurisdiction.
Need several products or services on one estimate? Use the multi-line VAT invoice calculator to total quantities, prices and per-line rates in your browser.
Frequently asked questions
What VAT rate does this Tanzania calculator use?
It starts with the 18% standard rate for Mainland Tanzania stated by the Tanzania Trade Portal and Ministry of Finance. Some supplies may be zero-rated or exempt.
Can the 16% rate be used for any Tanzania sale?
No. The Finance Act 2025 provides 16% only for eligible supplies meeting the required payment and implementation conditions. Confirm eligibility with current TRA notices; this calculator starts with the ordinary 18% standard rate.
Does this page cover Zanzibar?
No. Zanzibar has separate VAT administration and rates published by the Zanzibar Revenue Authority. Confirm the applicable ZRA treatment before using a result there.
How do I remove VAT from a VAT-inclusive amount?
Divide the VAT-inclusive amount by 1.18 to estimate the amount before VAT, then subtract it from the total to find the VAT portion.