Dar es Salaam. The Tanzania Revenue Authority (TRA) has issued a new public tax ruling clarifying the application of Value Added Tax (VAT) on international transport services, confirming that a range of cross-border transport-related services will continue to attract a zero per cent VAT rate.
The ruling, issued on August 6, 2026 under Section 11 of the Tax Administration Act, Cap 438, provides certainty to transporters, logistics firms, customs agents and other operators involved in international trade.
According to the notice, the zero-rated VAT treatment applies to the supply of international transport services provided by duly authorised service providers.
It also covers insurance services for goods under international transport, provided they are offered by licensed insurers.
Other qualifying services include the repair, maintenance, cleaning, renovation, modification and treatment of ships and aircraft engaged in international transport.
The ruling further extends the zero-rated treatment to services supplied to non-residents involving the handling, pilotage, salvage and towage of ships and aircraft operating in international transport or connected with their operation and management.
TRA also confirmed that ancillary transport services for goods in transit through Mainland Tanzania will qualify for zero-rated VAT where they form an integral part of international transport.
Such services include customs clearing and forwarding undertaken by licensed customs agents or authorised transport agents handling transit cargo.
For transit goods stored at ports, airports or licensed customs warehouses, the zero-rated treatment applies where storage does not exceed 30 days, with the Commissioner of Customs having discretion to grant an extension of up to 21 additional days.
Transportation and related services provided through international pipelines also fall under the zero-rated VAT regime.
In a significant clarification for the logistics industry, the ruling states that transportation services provided by subcontractors and lead transporters in moving goods across Tanzania’s borders will be treated as international transport services and will therefore qualify for zero-rated VAT.
TRA said the supplies may also form the basis for VAT refund claims, subject to existing legal requirements governing tax refunds.
To benefit from the ruling, taxpayers must maintain adequate documentary evidence proving that goods were transported across the country’s borders.
Lead transporters are required to retain documents including fiscal receipts, proof of payment, TANSAD records, bills of lading, invoices, packing lists and transit travel records.
Subcontractors must issue fiscal receipts to lead transporters or clearing and forwarding agents and maintain customs documentation relevant to transit or export cargo, including C28 and C40 licences, release orders, movement sheets and cargo manifests.
The ruling takes effect from the date of its issuance and applies prospectively.
TRA said the ruling will remain binding provided taxpayers maintain full tax compliance through timely filing of returns, prompt payment of taxes and avoidance of fictitious transactions or inflated input tax claims.
The authority added that any future amendments to the law will automatically take precedence over the public notice.
