Is Zanzibar the same VAT registration as mainland Tanzania?

No. Mainland Tanzania electronic-services VAT is administered by the Tanzania Revenue Authority. Zanzibar VAT on electronic services is administered by the Zanzibar Revenue Authority under the Zanzibar VAT Act. Digital services tax is a Union tax and is not this VAT

Is there a registration threshold?

No. Register regardless of turnover. There is no tax representative

Do I charge Zanzibar VAT on a business customer?

Register in either case. The current ZRA web guideline says not to collect VAT when the customer gives a valid Zanzibar VAT registration number, because that customer reverse-charges the supply. The older ZRA PDF says the charge covers B2B as well as B2C. Treat the customer as not VAT-registered unless they give the number

When must I start collecting and remitting?

The scheme is already in force. ZRA’s transitional measure tells non-residents to register now and to collect and remit from 1 January 2027. The rate is 18%, and input tax credit is not allowed

Compendium · Tanzania · Zanzibar (Tanzania)

Zanzibar (Tanzania): VAT on digital services

World map highlighting Zanzibar (Tanzania)

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Not supported by the free-threshold API · Local term: Value Added Tax

Last verified: 2026-11-03

Sub-national Zanzibar rule, separate from mainland Tanzania VAT administered by the Tanzania Revenue Authority. Digital services tax is a Union tax; VAT on electronic services in Zanzibar is collected by the Zanzibar Revenue Authority. Non-resident suppliers register regardless of turnover, at 18%, with no input-tax credit. The regime is in force. ZRA’s transitional measure requires collection and remittance from 1 January 2027

Not supported by the free-threshold API: why

No registration threshold. Country code TZ follows mainland Tanzania. Zanzibar applies when the region is TZ-07, TZ-10, TZ-11, TZ-12, or TZ-15. That region signal is not on the live API yet

Spot a mistake in Zanzibar (Tanzania)’s rules?

Open a public correction issue on Gitea (sign in or create an account). The form is prefilled with this page’s URL and a short template, and asks for the correction label. Accepted corrections become a reviewed diff on the rules dataset — rule fixes belong in botchannels-app, not a silent change on this site.

Threshold and rates (VAT)

Free threshold?: No — No registration threshold. Country code TZ follows mainland Tanzania. Zanzibar applies when the region is TZ-07, TZ-10, TZ-11, TZ-12, or TZ-15. That region signal is not on the live API yet
Amount / measure: TZS 0
No registration threshold. Non-resident suppliers of electronic services register from the first in-scope supply
Window: No threshold window (from the first sale)
Standard rate: 18.0%
18% on electronic services by non-resident suppliers. The ZRA web guideline states this rate for supplies to non-registered persons. The ZRA PDF states that input tax credit is not allowed. The Zanzibar domestic standard rate is not restated on either of those ZRA digital-services pages
Who must register: Non-resident suppliers of electronic services used or consumed in Zanzibar, with no fixed place in Zanzibar, regardless of turnover. Register even if every customer is in business. Do not collect VAT where the customer gives a valid Zanzibar VAT registration number: the current ZRA web guideline says the recipient reverse-charges that supply, and the supplier should treat the customer as not VAT-registered unless that number is given. The older ZRA PDF still says registration and charging cover B2B as well as B2C. Platforms are not deemed suppliers; the underlying non-resident supplier accounts for its own supplies to non-registered customers. This is not the mainland Tanzania (TRA) registration
Evidence of location: Zanzibar, for a supply to an unregistered person, if the customer’s declared place of residence, the geolocation of use, or the pattern of consumption is in Zanzibar. The engine signal for that place is ISO 3166-2 regions TZ-07, TZ-10, TZ-11, TZ-12 and TZ-15 under Tanzania. Country code TZ alone is mainland Tanzania, a different VAT, and the result is marked because the region may differ
Invoicing: For supplies to non-VAT-registered customers, the ZRA web guideline says a customer receipt is enough and a formal VAT invoice is not required. The ZRA PDF says these suppliers are exempt from virtual fiscal device receipts. No input-tax credit
Filing: Monthly, by the 20th of the following month. Pay in US dollars at the Bank of Tanzania average rate for the month. Collection and remittance run from 1 January 2027 under the ZRA transitional measure
Effective: VAT Act No. 4 of 1998, sections 4A and 4B, inserted by the Finance Act No. 4 of 2024, with the Tax Administration Procedures (simplified registration for non-resident suppliers of electronic services and foreign tour operators) Regulations, 2022. ZRA says the scheme was introduced on 16 August 2022, with guidelines published in April 2026. In force now. Collection and remittance are required from 2027-01-01 under ZRA’s transitional measure; register before that date
Authority: Zanzibar Revenue Authority (ZRA)

What Botchannels returns

Ruleset version: 2026-10-22.v1
Decision summary: Botchannels does not open free-threshold sales for Zanzibar. Country code TZ without a region follows mainland Tanzania, and the result is marked because the region may differ. Regions TZ-07, TZ-10, TZ-11, TZ-12 and TZ-15 select this Zanzibar rule. That signal is not on the live API yet. The jurisdiction-tree note is on the docs page
Product class: Digital service
Support status: Not supported by the free-threshold API — No registration threshold. Country code TZ follows mainland Tanzania. Zanzibar applies when the region is TZ-07, TZ-10, TZ-11, TZ-12, or TZ-15. That region signal is not on the live API yet

How to register

Self-register online?: Yes — Register online on ZIDRAS, the Zanzibar Integrated Domestic Revenue Administration System. No tax representative is required
Resident representative / fiscal agent: Not required
Regime: Zanzibar Revenue Authority simplified VAT for non-resident suppliers of electronic services (VAT Act No. 4 of 1998, sections 4A and 4B). Separate from mainland Tanzania TRA VAT. The same notice also names foreign tour operators; this page states the electronic-services rules

Steps (in order)

Confirm the supply is an electronic service used or consumed in Zanzibar: the customer’s declared residence, the geolocation of use, or the consumption pattern is in Zanzibar
Register online on ZIDRAS regardless of turnover. No tax representative. Have the home-country company certificate, contact details, website or platform, and home-country tax identification number — https://portalzidras.zanrevenue.org
If the customer gives a valid Zanzibar VAT registration number, do not collect VAT on that supply (current ZRA web guideline: the recipient reverse-charges). The older ZRA PDF says B2B supplies are charged as well. Keep the number the customer gave
File a return every month and pay by the 20th of the following month, in US dollars at the Bank of Tanzania average rate for that month. ZRA’s transitional measure requires collection and remittance from 1 January 2027; register before then. The ZRA PDF exempts these suppliers from virtual fiscal device receipts. The web guideline says a customer receipt is enough for supplies to non-registered customers, and a formal VAT invoice is not required for those supplies

Documents

Company certificate of the country of origin — Home-country incorporation or registration evidence, as listed on the ZRA guideline
Business contact details — Contact particulars for the non-resident supplier
Website or platform information — The site or platform through which the electronic services are supplied
Tax identification number of the country of origin — Home-country tax ID

Official processing time: The ZRA digital-services guideline does not publish a processing time. The portal issues a registration number and certificate when registration is complete
Official fees: No ZRA registration fee is stated on the digital-services guideline or the PDF notice
Portal: https://portalzidras.zanrevenue.org
Local bank account: Not required of the supplier. Pay in US dollars to the Zanzibar Revenue Authority account named on the ZRA guideline (People’s Bank of Zanzibar), using the Bank of Tanzania average rate for the month
Filing frequency: Monthly. File and pay on or before the 20th day of the month after the accounting period
Payment currency: USD
Input VAT recovery: Not allowed. The ZRA PDF states that input tax credit is not allowed
Portal language: English guideline
Penalties: The ZRA digital-services guideline does not set out a penalty schedule. Keep records that explain the Zanzibar supplies for at least seven years, in English or in a form that can be converted to English

Firms offering this service

No verified provider links for this jurisdiction yet. Prefer the official portal and a locally licensed tax adviser.

Region verify

Facts imported on 2026-11-03. Overall confidence: primary. A field marked indicative is unverified and is not a decision by itself.

Field	Summary
Evidence of customer location	A supply to an unregistered person is treated as delivered in Zanzibar if the customer’s declared residence, the geolocation of use, or the consumption pattern is in Zanzibar (primary)
Digital regime	Zanzibar separately taxes non-resident electronic services under VAT Act ss4A/4B and 2022 simplified-registration regulations (primary)
Rate	Non-resident electronic services to non-VAT-registered Zanzibar recipients are taxed at 18% (primary)
Foreign registration threshold	Registration is required regardless of turnover; no tax representative is required (primary)
Simplified regime	Non-residents register on ZIDRAS, file monthly by the 20th, and as a transitional measure may start collecting and remitting from 1 January 2027 (primary)
Collect and remit	Zanzibar has no platform deemed-supplier regime: the underlying non-resident supplier remains VAT-liable for its own B2C supplies (primary)
B2C invoice	Formal VAT invoices are not required for B2C electronic services; customer receipts are enough, and non-residents are exempt from Virtual Fiscal Devices (primary)
Local payment methods	No named Zanzibar mobile-money rail is written into the place-of-supply test on the ZRA page (indicative, unverified)
IP, VPN, or datacenter	Geolocation of use is an express OR indicator; no VPN carve-out is published on the ZRA page (primary)
Private seller selling to a business	No Zanzibar-specific private-to-business test for digital sellers was found this pass (indicative, unverified)
Bookkeeping retention	Non-resident suppliers must keep relevant VAT records for at least seven years in English or easily convertible form (primary)
AML triggers	No AML trigger found this pass (indicative, unverified)

Official sources

ZRA — VAT on Digital Service in Zanzibar (web guideline)
ZRA — VAT on Digital Service in Zanzibar (PDF notice)
ZRA VAT on Digital Service page
Simplified registration regulations 2022

Last verified: 2026-11-03.

FAQ

Is Zanzibar the same VAT registration as mainland Tanzania?: No. Mainland Tanzania electronic-services VAT is administered by the Tanzania Revenue Authority. Zanzibar VAT on electronic services is administered by the Zanzibar Revenue Authority under the Zanzibar VAT Act. Digital services tax is a Union tax and is not this VAT
Is there a registration threshold?: No. Register regardless of turnover. There is no tax representative
Do I charge Zanzibar VAT on a business customer?: Register in either case. The current ZRA web guideline says not to collect VAT when the customer gives a valid Zanzibar VAT registration number, because that customer reverse-charges the supply. The older ZRA PDF says the charge covers B2B as well as B2C. Treat the customer as not VAT-registered unless they give the number
When must I start collecting and remitting?: The scheme is already in force. ZRA’s transitional measure tells non-residents to register now and to collect and remit from 1 January 2027. The rate is 18%, and input tax credit is not allowed