Tanzania VAT Explained (18%)
Value Added Tax (VAT) in Tanzania is 18% on most goods and services. This guide explains how to add VAT to a price, how to work out the VAT included in a price, and when VAT applies.
Reviewed by the Calculator editorial team · Last updated 6 September 2026
The 18% standard rate
Tanzania's standard VAT rate is 18%, applied to most taxable goods and services. There are also zero-rated and exempt supplies, but the general rate for everyday transactions is 18%.
Adding VAT to a price
To add VAT to a price that excludes VAT, multiply by 1.18 (or add 18%). For example, 100,000 TZS before VAT becomes 118,000 TZS including VAT — the VAT amount is 18,000 TZS.
Working out VAT already included
To find the VAT inside a price that already includes it, divide the total by 1.18 to get the pre-VAT amount, then subtract. A 118,000 TZS price includes 18,000 TZS of VAT on a 100,000 TZS base.
Who pays VAT?
VAT is ultimately paid by the consumer, but it's collected and remitted by registered businesses. If you're pricing goods or services, knowing how to add or remove VAT correctly matters for your invoices.
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Frequently asked questions
What is the VAT rate in Tanzania?
18% is the standard rate, applied to most taxable goods and services.
How do I add 18% VAT to a price?
Multiply the pre-VAT amount by 1.18. For example, 100,000 TZS becomes 118,000 TZS including VAT.
How do I remove VAT from a price?
Divide the VAT-inclusive price by 1.18 to get the pre-VAT amount, then subtract that from the total.