CHAPTER 148
VALUE ADDED TAX ACT

[SUBSIDIARY LEGISLATION]

INDEX TO SUBSIDIARY LEGISLATION

    OMITTED RULES

    REGULATIONS

        The Value Added Tax (Tax Stamps) Regulations

        The Value Added Tax (Registration) Regulations

        The Value Added Tax (General) Regulations

        The Value Added Tax (Transitional) Regulations

        The Value Added Tax (Imported Services) Regulations

        The Value Added Tax (Repayments) Regulations

OMITTED RULES

    The following Rules have been omitted:

G.N. No. 175 of 1998    The Value Added Tax (Appeals Tribunal) Rules.

REGULATIONS

THE VALUE ADDED TAX (TAX STAMPS) REGULATIONS

[15th April, 1998]

G.N. No. 157 of 1998

1.    Citation

    These regulations may be cited as the Value Added Tax (Tax Stamps) Regulations.

2.    Interpretation

    In these regulations, unless the context otherwise requires–

    "Act" means the Value Added Tax Act *;

    "Authority" means the Tanzania Revenue Authority established by section 4 of the Tanzania Revenue Authority Act *;

    "Authority's staff" means any person under the contract of employment with the Authority;

    "cigarettes" means:

    (a)    rolls of cut tobacco capable of being smoked as they are and which are wrapped in cigarette paper;

    (b)    rolls of cut tobacco which by simple non-industrial handling, are inserted into cigarette paper tubes; or

    (c)    other rolls of tobacco which by non-industrial handling, are wrapped in cigarette paper;

    "Commissioner" means the Commissioner General of the Tanzania Revenue Authority;

    ''prescribed form" means a form prescribed under these regulations;

    "registered cigarette importer" means a trade duly registered by the Commissioner in relation to importation of cigarettes;

    "registered cigarette manufacturer" means a manufacturer of cigarettes, duly licensed for the business and registered by the Commissioner in that respect;

    "tax stamp" means a stamp approved by the Authority to be affixed to the cigarette packet.

3.    Types of tax stamps

    (1) The design and specification of the tax stamps shall be as may be determined by the Authority and may be changed at any time depending on the supply of stamps required for cigarette manufacture.

    (2) Subject to subregulation (1) different types of tax stamps shall be determined according to the number of cigarette tax categories that exist at any given time, and specified colours shall be used to distinguish the tax categories as follows:

4.    Procurement of Tax Stamps

    The procurement of the stamps shall be the responsibility of the Authority.

5.    Supply and distribution of Tax Stamps

    Subject to the provisions of regulation 4, the following procedure shall apply to the supply and distribution of tax stamps:

    (a)    In the case of imported cigarettes to Tanzania, the importer shall indent from, and pay for the tax stamps to the Authority. Each indent shall be of a minimum of five thousand stamps and shall indicate the name and address of the foreign cigarette manufacturer as requested by the importer.

    (b)    The Authority shall authorize the printer to make direct supply of tax stamps to the foreign cigarette manufacturer as requested by the importer.

    (c)    In the case of locally manufactured cigarettes, the Authority shall procure and maintain sufficient stocks of tax stamps for the supply to the local cigarette manufacturers.

6.    Affixation of Tax Stamps

    All imported and locally manufactured cigarettes shall be affixed with a tax stamp on the packet. Affixation of the stamps shall be such that the stamp will be broken when the packet is opened in the normal manner, or the packet will render it unusable.

7.    Time for affixation of Tax Stamps

    In the case of imported cigarettes the supplier shall be required to affix the tax stamps on the packets before shipment. In the case of locally manufactured cigarettes, the manufacturers shall be required to affix the tax stamps on the packets before they are delivered out of the manufacturer's premises.

8.    Packaging of Cigarettes

    Cigarettes shall only be released into the market within Tanzania in packets of twenty sticks each.

9.    Record Keeping

    The printer shall notify the Authority of the quantities of tax stamps supplied to foreign cigarette manufacturers. Importers and local manufacturers of cigarettes shall maintain records on a monthly basis of tax stamps received, tax stamps affixed on packets and stock balance on hand. The Authority shall also maintain records of tax stamps received from the supplier.

10.    Tax exemptions

    The following cigarettes shall be exempt from the requirement of tax stamps:

    (a)    locally manufactured cigarettes for export from Tanzania; and

    (b)    cigarettes destroyed, denatured, or recycled within the manufacturing process under the supervision of the Authority's staff.

11.    Authorizations of tax exemptions

    Subject to the provisions of Regulation 10, the exemptions shall only apply in cases where the Authority's staff is satisfied that proper administrative procedures are in place to control the quantities being allocated for the purpose stated and that abuse of the provision will not take place. Any cigarette that cannot be properly accounted for under these exemptions or for which authorisation is not obtained, shall be subjected to tax.

12.    Accounting for stamps

    There shall be an accounting for tax stamp usage in the form of a monthly reconciliation statement by every registered manufacturer and importer. The monthly reconciliation statement shall show a summary of the usage of the total number of tax stamps issued during the month, plus stamps brought forward from the previous month under the following headings:

    (a)    Stamps in stock at the close of the previous month and carried forward for use during the month.

    (b)    Stamps applied to cigarettes manufactured within Tanzania or imported into Tanzania as the case may be.

    (c)    Stamps spoiled or damaged during manufacture as certified by the Authority's staff.

    (d)    Stamps unaccounted for in the reconciliation statement and therefore deemed to be lost.

    (e)    Stamps in stock at the end of the month and carried for use in the following month.

13.    Submission of monthly reconciliation statement

    In the case of imported cigarettes, the reconciliation statement shall be submitted to the Authority along with the tax payment. In the case of locally manufactured cigarettes, the reconciliation statement shall be submitted to the Authority within fifteen days after the due date.

14.    Computation of tax

    Tax payment due for the stamps used shall be calculated based on the following:

    (a)    Stamps applied to locally manufactured cigarettes;

    (b)    Stamps applied to imported cigarettes into Tanzania;

    (c)    Stamps unaccounted for in monthly reconciliation statement and therefore deemed lost.

15.    Rebate of tax

    Stamps damaged in the process of cigarette manufacture and destroyed under the supervision of the Authority's staff shall be subject to rebate of tax.

16.    Evidence of payment of tax

    The Authority shall require such evidence for the payment of taxes, as it may deem necessary, before authorizing the issue of fresh stock of tax stamps.

17.    Audit

    The Authority may carry out random audit of the operation of the stamp reconciliation procedure and calculation of tax payment. Authority's staff may inspect any premises for the purpose of enforcing the requirement of tax stamps.

18.    Disputes

    Settlement of disputes under these regulations shall be dealt with in accordance with the provisions of section 47 of the Act.

19.    Force majeure

    In the event of the circumstances arising which stop or limit the availability of tax stamps, the Authority shall have the power to suspend these regulations and impose temporary measures similar to those in force prior to the 15th April, 1998. It will be permissible in such circumstances to release cigarettes into the Tanzania market without tax stamps subject to the strict enforcement of factory controls and the due payment of the appropriate taxes.

20.    Offences

    A local cigarette manufacturer, importers, or any other persons who–

    (a)    fails to retain tax stamp registers, records or any other documents;

    (b)    fails to submit monthly tax stamp reconciliation statements within the prescribed period;

    (c)    fails to affix tax stamps to a cigarette packet in a secure manner;

    (d)    makes an overprint or defaces tax stamp affixed on cigarette packet; or

    (e)    submits an incorrect or incomplete tax stamp reconciliation statement,

commits an offence and is liable, upon conviction, to a fine not exceeding five hundred thousand shillings or to imprisonment for a term not exceeding six months, or to both such fine and imprisonment.

21.    Powers of the Minister

    The Minister may, by notice in the Gazette, amend or vary these regulations.

THE VALUE ADDED TAX (REGISTRATION) REGULATIONS

(Section 19)

[17th April, 1998]

G.N. No. 176 of 1998

1.    Citation

    These regulations may be cited as the Value Added Tax (Registration) Regulations.

2.    Interpretation

    In these Regulations, unless the context requires otherwise–

    "Act" means the Value Added Tax Act *;

    "Commissioner" means the Commissioner for Value Added Tax;

    "taxable person" means person registered or required to be registered under the provisions of this Act;

    "taxable turnover" means that part of the turnover of a business applicable to taxable suppliers;

    "VAT" means Value Added Tax.

3.    Taxable turnover requiring registration

    (1) Where the taxable turnover of any taxable person exceeds or is likely to exceed–

    (a)    twenty million shillings in a period of twelve consecutive months commencing on or after the 1st day of January, 1997; or

    (b)    five million shillings in any period of three consecutive months commencing on or after the 1st day of October, 1997,

    that taxable person shall make an application for registration for the purposes of the Act to the Commissioner.

    (2) In calculating the taxable turnover of a taxable person, any supplies made in the course of business prior to the commencement of VAT shall be regarded as taxable if those supplies would be taxable if made after the commencement of VAT.

4.    Manner and form of application

    (1) An application for registration under subregulation (1) of regulation 3 shall be made in the form prescribed in the Schedule to these regulations and lodged in any manner with the Commissioner within thirty days of the taxable person becoming liable to make the application.

    (2) The application shall be deemed to have been made when it is received by the Commissioner.

5.    Notification of changes

    A taxable person shall notify the Commissioner in writing within thirty days after the occurrence of any of the following events–

    (a)    his cessation of making taxable supplies;

    (b)    the taxable turnover falls below the turnover prescribed under subregulation (1) of regulation 3 of these regulations;

    (c)    a change in ownership of the business including change in the constitution of, or the terms governing the business;

    (d)    a change in the name or trading name of business, or in the name or address of the owner or any of the owners of the business;

    (e)    a change of the business address;

    (f)    a change of or addition to, business premises;

    (g)    any other major change in the nature, control or conduct of the business.

6.    Representative of a taxable person

    Where a taxable person is an unincorporated body other than a company incorporated under the Companies Act * and anything is required by or under the Act or Regulations made under the Act to be done by the taxable persons, the person responsible for performing the duties imposed under the Act or Regulations made under it shall be in case of–

    (a)    a partnership, each and every partner jointly and severally;

    (b)    a club, association or organization the affairs of which are managed by its members or any committee of its members, any person who is the treasurer or any person whose functions are similar to those of a treasurer of the club, association or, organisation as the case may be;

    (c)    a person under a legal disability, a bankrupt or incapacitated person, his guardian, curator, administrator or any other person having the management and control of his affairs;

    (d)    a deceased person or his estate, the executor or administrator of estate; and

    (e)    a company which is placed under receivership or liquidation, the receiver or liquidator, as the case may be.

SCHEDULE
APPLICATION FOR REGISTRATION FOR VAT

(Regulation 4)

THE VALUE ADDED TAX (GENERAL) REGULATIONS

[17th April, 1998]

G.Ns. Nos.
177 of 1998
366 of 2000

1.    Citation

    These Regulations may be cited as the Value Added Tax (General) Regulations.

2.    Interpretation

    In these regulations, unless the context requires otherwise–

    "Act" means the Value Added Act *;

    "accounting year" means a twelve consecutive calendar months period;

    "Commissioner" means the Commissioner for Value Added Tax;

    "TIN" means Taxpayer Identification Number.

3.    Input tax not allowed on motor car

    (1) Any input tax charged on the supply to, or importation by, a taxable person of a motor car shall be excluded from any claim, deduction or credit made under section 16 of the Act.

    (2) For the purposes of this regulation motor car means any motor vehicle which has three or more wheels and which–

    (a)    is constructed or adapted wholly or mainly for the carriage of passengers; or

    (b)    has to the rear of the driver's seat roofed accommodation fitted with side windows, or is constructed or adapted for the fitting of side windows; but does not include–

        (i)    a vehicle capable of accommodating only one person;

        (ii)    a vehicle constructed or adapted for carrying twelve or more persons;

        (iii)    a vehicle of not less that three tons unladened weight;

        (iv)    a vehicle constructed for a special purpose other than the carriage of persons and having no accommodation for carrying persons other than such as is incidental to that purpose.

    (3) Subregulation (1) of regulation 3 shall not apply to–

    (a)    supply of a motor car by way of letting on hire;

    (b)    importation or supply of a motor car for the purposes of resale by a motor dealer.

    (4) Where a motor car is resold otherwise than at a profit, such resale shall not constitute a supply of goods for the purposes of the Act.

4.    Input tax not allowed on business entertainment

    (1) Any tax incurred by a taxable person on business entertainment shall, unless that business entertainment is in relation to–

    (a)    the ordinary course of a business which continuously or regularly supplies entertainment for a consideration; or

    (b)    the provision to an employee of food, non-alcoholic beverage, accommodation or transportation for use wholly and exclusively for the purposes of the employer's business,

be excluded from any claim, deduction or credit made under section 16 of the Act.

    (2) For the purposes of this regulation "business entertainment" means a provision to–

    (a)    a customer or prospective customer, of any form of food, beverage, tobacco, accommodation, amusement, recreation, transportation or hospitality;

    (b)    an employee, of any form of alcoholic beverage, tobacco, amusement, recreation, or hospitality.

5.    Tax paid prior to registration or after cancellation of registration

    (1) Where a person not registered for the purposes of the Act–

    (a)    imports any goods, or any goods or services are supplied to him for the purposes of any business carried on or to be carried on by him;

    (b)    becomes registered afterwards and continues carrying on that business,

that person may claim input tax credit or deduction in respect of those goods or services, if–

    (i)    the goods were in the ownership and possession of that person on the date of registration, and such goods were received not more than six months prior to the registration; or

    (ii)    the services were received not more than six months, prior to registration.

    (2) Where services are supplied to a person who was previously registered under the Act, and those supplies are made for purposes directly connected with the reason his registration was cancelled, that person may claim repayment of the input tax in respect of those services if the services were received within six months of the cancellation of the registration.

    (3) A person to whom subregulation (2) applies shall retain and adduce all records, invoices, accounts and any other information prescribed in the Act or the Regulations in relation to the supplies or importations.

    (4) A claim under this regulation shall be allowed only to the extent and subject to conditions prescribed under section 16 of the Act.

    (5) Without limiting the generality of subregulation (4)–

    (a)    a claim shall be disallowed where the registered person is not in possession of documentary evidence as prescribed under subsection (4) of section 16 of the Act;

    (b)    a claim may be partly disallowed by rules of apportionment prescribed under regulations 6 and 7 and applicable to the supplier's business.

6.    Claim of input tax paid in Zanzibar

    (1) Any claim of input tax by a taxable person in Mainland Tanzania for supplies purchased from a taxable person in Tanzania Zanzibar shall in addition to the tax invoice issued by the supplier be supported by a transfer form duly completed by the claimant and authenticated by the Zanzibar Treasury that the goods have actually been exported to Mainland Tanzania.

7.    Apportionment of input tax

    (1) Where the supplies effected by a registered person comprise both taxable and exempt supplies, one of the partial exemption methods described in regulation 8 shall be used to determine the proper attribution.

    (2) Where a registered person chooses one of the partial exemption methods in any return lodged the same method shall be used thereafter in any return lodged in the same accounting year.

    (3) A registered person shall at the end of each accounting year, using the partial exemption method he has last chosen, determine the attribution in respect of supplies effected during that accounting year, and shall on his next VAT return adjust any difference in input tax previously attributed to taxable supplies during that year.

    (4) Where registration is cancelled, the previously registered person shall–

    (a)    using the method he last chose, determine the input tax attributable to taxable supplies in respect of the period commencing at the beginning of the current accounting year and ending on the date of cancellation of registration;

    (b)    include any adjustment to the input tax previously attributed to the taxable supplies, resulting from the attribution at paragraph (a) of this subregulation on his final VAT return.

8.    Methods of apportionment of input tax

    (1) The first method of apportionment of input tax shall be as follows–

    Step 1.    Calculate the value of taxable supplies made in the accounting period.

    Step 2.    Calculate the value of all supplies made in that period.

    Step 3.    Calculate the amount of tax payable on supplies made to the registered person in that period.

    Step 4.    Divide the amount obtained in step 1 by the amount obtained in step 2.

    Step 5.    Multiply the amount obtained in step 3 by the amount obtained in step 4.

    (2) The amount of input tax to be claimed as deduction or credit in the prescribed accounting period is the product obtained in step 5 described in subregulation (1) of this regulation.

    (3) The second method of apportionment of input tax shall be as follows *–

    Step 1.    Divide input tax for the prescribed accounting period into categories, namely–

    * Calculate the proportion of taxable sales to total sales as described in steps 1, 2 and 4 of subregulation (1).

    * Multiply the proportion obtained in step 2 by the amount in category C in step 1.

    Step 2.    Take the sum of input taxes of Category A and B and calculate that proportion of that sum represented by Category A input tax.

    Step 3.    Multiply the amount obtained in step 2 by the amount obtained in category C in step 1.

    (4) The amount which may be claimed as deduction or credit for the prescribed accounting period is the amount obtained in step 3 together with the amount of input tax in Category A in step 1 described in subregulation 3 of this regulation.

9.    Tax invoices

    (1) A Tax invoice shall prominently bear the words "tax invoice" on its face.

    (2) A tax invoice for the supply of goods or services shall include the following particulars, namely–

    (a)    the taxable person's name, address, TIN and VAT registration number;

    (b)    the date of supply;

    (c)    the number of the invoice taken from a consecutive series;

    (d)    the customer's name, address, TIN and his VAT registration number;

    (e)    a description sufficient to identify the goods or services supplied which includes the quantity of goods or the extent of services supplied, tax exclusive price for each description of goods or services supplied, rate of tax; and

    (f)    the rate of any discount.

    (3) A tax invoice shall indicate–

    (a)    the total charge exclusive of tax;

    (b)    the total tax charged; and

    (c)    the total charge inclusive of tax.

10.    Issue of tax invoice

    (1) A registered taxable person shall issue a tax invoice–

    (a)    to a customer who is a taxable person in respect of any taxable supply of goods or services to that customer;

    (b)    upon request by a customer who is not a taxable person,

    in respect of any taxable supply, at the time of supply or not later than fourteen days after the time of supply.

11.    Tax credit notes

    (1) A registered taxable person who has issued a tax invoice in respect of a taxable supply shall, unless the Commissioner otherwise allows, issue a credit note if–

    (a)    the supply is cancelled;

    (b)    the goods are returned to the registered taxable person;

    (c)    the value of the supply is reduced.

    (2) The credit note mentioned under subregulation (1) shall contain–

    (a)     the particulars prescribed for tax invoices;

    (b)    the amount of credit;

    (c)    a statement of the reason for credit.

12.    Accounts and records

    (1) Unless the Commissioner authorises otherwise in writing, every taxable person shall, in addition to any further requirements made under section 25 of the Act, keep the following records of his business activities–

    (a)    a VAT account, recording for each prescribed accounting period total VAT on outputs and inputs together with the net difference to be paid to or reclaimed from the Commissioner;

    (b)    a record of each supply made related to the appropriate tax invoice or any other invoice;

    (c)    record of the value of each supply made excluding VAT, together with the VAT charged on each supply unless the taxable is using one of the methods described in regulation 13 in which case, the taxable person shall keep the records required under that regulation;

    (d)    a record of each supply received related to the appropriate tax invoice, any other invoice or import document;

    (e)    a record of the value of each supply received excluding VAT and the VAT charged;

    (f)    a record of the total VAT recorded in paragraphs (c) and (e) for each prescribed accounting period;

    (g)    record of each payment made or received showing the date, amount and the person making or receiving the payment;

    (h)    a record of all goods appropriate or taken into personal use or into the use of others, the date of appropriation or taking into use, the description of the goods, the value of goods excluding VAT, and the VAT calculated on the goods.

    (2) For each prescribed accounting period the totals of VAT at paragraph (c), (e) and (h) of subregulation (1) of this regulation shall be transferred to the VAT account kept in accordance with paragraph (a) of subregulation (1) of this regulation.

13.    Tax returns

    A taxable person shall ensure that his tax return, in the form set out as VAT 201 in the Schedule to the Regulations, is lodged at the tax office for the address at which he is registered for the purposes of the Act, within the time prescribed in section 26 of the Act.

14.    Special method of accounting for output tax

    (1) A taxable person who–

    (a)    makes supplies of goods or services by retail direct to the consumer; and

    (b)    is of a description specified in a notice issued for the purposes of this regulation by the Commissioner,

    may calculate tax on those supplies by either of the methods prescribed in this regulation, in respect of those supplies for which consideration is wholly in money.

    (2) A taxable person shall keep a record of all payments received each day in respect of supplies of goods and services, in a form and manner approved by the Commissioner.

    (3) The record referred to in subregulation (2) shall include a record of payments received in respect of the following supplies made–

    (a)    by the taxable person which were taxable before he began to account for tax under these regulations; or

    (b)    before the tax commencement date in any relevant accounting period which would have been taxable.

    (4) A registered taxable person may choose to use the first method described in subregulation (7) or the second method described in subregulation (8) and the method chosen by the taxable person shall continue to be used in any return lodged in the same accounting year.

    (5) A taxable person, using the second method of calculation under subregulation (8), shall at the end of each accounting year recalculate his output tax in respect of supplies made during that accounting year and shall on his next tax return adjust any difference in output tax previously attributed to taxable supplies during that year.

    (6) Upon occurrence of any of the following events, namely–

    (a)    cancellation of registration;

    (b)    a change in the rate of tax;

    (c)    a change in the liability for tax that affects the business; or

    (d)    cessation of the use of the chosen method of calculating output tax,

a taxable person, using the second method of calculation under subregulation (8), shall recalculate the output tax in respect of the period commencing at the beginning of the accounting year, and ending on the date of the occurrence of any of the said events and within thirty days after the date of that event, include any adjustment to the output tax previously attributed to taxable supplies during that period on his VAT return for the next prescribed accounting period.

    (7) The first method of calculating output tax shall be as follows–

    Step 1.    Separate gross takings at the point of sale between taxable and exempt supplies.

    Step 2.    Each day at the close of business total the records of gross takings.

    Step 3.    At the end of the prescribed accounting period, from the records of taxable daily gross takings, calculate the tax using the tax fraction for the rate of tax in force and include the amount on the VAT return for that period.

    (8) The second method of calculating output tax shall be as follows–

    Step 1.    Record total gross taking for each day.

    Step 2.    At the end of each prescribed accounting period, total daily gross takings for that period.

    Step 3.    Allocate those gross takings to taxable supplies in the same proportion that the value of taxable purchases made in the period bears to the value of total purchases in that period.

    Step 4.    From the gross takings allocated to taxable supplies calculate the tax for the prescribed accounting period using the tax fraction for rate tax in force and include the amount on the VAT return for the period.

    (9) For the purposes of subregulations (7) and (8) of this regulation "tax fraction" means the fraction calculated in accordance with the formula:

             r
    r + 100

in which "r" is the rate of the tax in force.

15.    Change of rate of tax or liability

    In the event of a change in the rate of tax or liability to tax during the prescribed accounting period, the calculation in subregulation 7 or 8 of regulation 13 shall be made at the close of business on the day of change and also at the close of business on the last day of the prescribed accounting period, using the rate of tax and the liability to tax in force on each respective day.

THE VALUE ADDED TAX (TRANSITIONAL) REGULATIONS

(Sections 68 and 70)

[17th April, 1998]

G.N. No. 178 of 1998

    1. These Regulations may be cited as the Value Added Tax (Transitional) Regulations.

    2. In these Regulations, unless the context requires otherwise–

    "Commissioner" means the Commissioner for Value Added Tax;

    "sales tax" means the tax charged under the Sales Tax Act, 1976 *.

    3. (1) A taxable person shall recover the sales tax paid by him on goods which are taxable supplies under section 5 of the Value Added Tax Act * and are in his stock for sale at the start of business on the 1st day of July, 1998:

    Provided that–

    (a)    the taxable person is registered for Value Added Tax purposes;

    (b)    the goods are purchased on or after the 1st day of January, 1998;

    (c)    records of stock purchases and suppliers and records of sales and customers are maintained from the 1st day of January, 1998;

    (d)    stock is taken on the 30th day of June, 1998;

    (e)    such goods are in the ownership and possession of the taxable person at the start of business on the 1st day of July, 1998; and

    (f)    the taxable person produces documentary evidence to satisfy the Commissioner that sales tax was paid in respect of the goods for which he seeks to recover sales tax.

    4. (1) To qualify for recovery of sales tax the claim shall be:

    (a)    made in the form prescribed in the Schedule to these Regulations;

    (b)    lodged not later than the 30th day of September, 1998 at the tax office for the address at which the taxable person is registered; and

    (c)    approved by the Commissioner.

    (2) Any sales tax approved for recovery under these Regulations shall be deemed as deductible input tax if the deduction is made on a VAT return for a prescribed accounting period ending not later than the 30th day of November, 1998.

    5. Any net tax repayable pursuant to subregulation (2) of regulation (4) shall be subject to the provisions of section 17.

SCHEDULE
FORMS

SALES TAX REFUND CLAIM FORM

(Regulation 4)

STOCK DECLARATION (SALES TAX CLAIM) FORM 205A

STOCK DECLARATION ON 1ST JULY 1998

THE VALUE ADDED TAX (IMPORTED SERVICES) REGULATIONS

(Section 14)

[12th October, 2001]

G.N. No. 249 of 2001

1.    Citation

    These Regulations may be cited as the Value Added Tax (Imported Services) Regulations.

2.    Interpretation

    In these Regulations unless the context requires otherwise–

    "Act" means the Value Added Tax Act *;

    "services" has the meaning assigned to it under section 5(4) of the Act;

    "imported services" means a supply of services on business outside mainland Tanzania to a recipient who is a resident of mainland Tanzania for the purpose of any business carried by that person.

3.    Reverse charge on services

    (1) Subject to subregulation (2) of this regulation, where services are imported than the same consequences under the Act shall follow as if the recipient had himself supplied the services in mainland Tanzania in the course of or in furtherance of his business, and such supply were a taxable supply.

    (2) Supplies which are treated as made by the recipient under subregulation (1) above are not to be taken into account as supplies made by him when determining any allowance if input tax for partial exemption purposes.

4.    Value of imported services

    The value of imported services shall be the total amount paid for the supply or the value of any form of consideration, and shall be included in the taxable turnover of any business in determining liability for registration.

5.    Time of supply

    The recipient of the service must account for the tax on imported services when–

    (a)    the service is performed or completed;

    (b)    the invoice for the service is issued;

    (c)    any payment for the service is made, whichever is the earlier.

6.    Recording

    The recipient of the service shall record in the VAT Account:

    (a)    The tax due on imported services as output tax in the period in which the services are imported; and

    (b)    A claim for the accounted tax as input tax in accordance with normal rules.

THE VALUE ADDED TAX (REPAYMENTS) REGULATIONS

(Section 69)

[1st August, 2001]

G.N. No. 369 of 2002

1.    Citation

    These Regulations may be cited as the Value Added Tax (Repayments) Regulations.

2.    Interpretation

    In these Regulations, unless the context otherwise requires–

    "Act" means the Value Added Tax Act *;

    "auditor" means an auditor defined under the Auditors and Accountants (Registration) Act *;

    "Bank" means a bank as defined under the Banking and Financial Institutions Act *;

    "bank account" means an account opened and operated by a registered person or an account opened and operated on his behalf with any bank;

    "Certificate of Genuineness" means a certificate issued by an Auditor under the provisions of the Regulations;

    "claim of refund" means a claim lodged pursuant to and in accordance with the provisions of section 17 of the Act;

    "Commissioner General" means the Commissioner General of the Tanzania Revenue Authority and includes any person to whom the Commissioner General has delegated all or any of his functions under these Regulations;

    "taxable person" means a person as defined under section 2 of the Act.

3.    Repayment

    A repayment to a taxable person which arises from a claim for refund shall be done by way of a cheque and, unless the Commissioner General otherwise allows, to and through the respective taxable persons bank account.

4.    Claim form

    Every claim for refund shall be in the Form VAT 201 and shall be accompanied by a Certificate of Genuineness.

5.    Contents of the certificate

    (1) The Certificate of Genuineness shall contain the following particulars:

    (a)    The name and VAT registration number of the taxable person;

    (b)    the amount of excess credits which the taxable person is claiming and the amount certified by the auditor;

    (c)    the period which the credits have accrued;

    (d)    the bank, account and branch of the tax payer;

    (e)    the name of the certifying auditor or auditors;

    (f)    the registration number of the certifying auditor or auditors;

    (g)    the date of certification;

    (h)    the signature and seal of the certifying auditor.

    (2) Notwithstanding anything stated in these Regulations a Certificate of Genuineness shall be in a format prescribed in the Schedule to these Regulations.

6.    Responsibility of the registered person to produce documents and information

    A taxable person shall prepare and produce to the auditor all documents and information necessary for the examination and certification of the refund claim.

7.    Banking practice

    Any repayment under these Regulations shall be done in accordance with the governing banking practice and rules established by the relevant laws.

SCHEDULE
CERTIFICATE OF GENUINENESS

{/mprestriction}