Executive summary. The said section of the law provides the Commissioner General CG of the Tanzania Revenue Authority TRA the power to grant VAT exemptions on importation by or a supply of goods or services to various taxable persons including a Non-Governmental Organization NGO or to an entity executing a strategic project under an agreement with the Government which provides for VAT exemption on goods and services.
This Alert summarizes key changes in the new regulations. Detailed discussion. An application for VAT exemption has to be submitted to the Permanent Secretary of the Ministry responsible with the project. The application must be supported by the below listed documents whereby the Permanent Secretary shall verify that the application is in order, approve the application and forward it to the CG.
The application must be submitted to the CG within a period of not less than 60 days before the commencement of the project and therefore the application process should start as soon as an agreement with the Government has been concluded. The listed documents include:. A contract between the Government entity and the contractor or level sub-contractor s approved by the Minister of Finance.
Quotations, bill of quantities and list of goods and services to be exempted for the project. Tentative description of the place of procurement of goods or services where in the case of import the country from which goods are acquired needs to be specified, in the case of local supply the name, Tax Identification Number and VAT Registration Number of the supplier.
List of contractors who shall execute the project, physical location and address of where the project is to be carried out. Proforma invoices, tentative analysis showing exact quantities, value of goods and services to be exempted with the corresponding amount of tax sought to be exempted.
