VAT on commission invoices in Tanzania

Updated 1 month ago | 5 min read time
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In accordance with Tanzanian VAT legislation, we’re changing the way VAT is applied to the commission invoices we send to accommodation partners in Tanzania. In this article you’ll find some of the most important information about these changes, as well as answers to common questions. 


What’s in this article:


What’s changing and how it affects you

A change in Tanzania’s tax legislation now requires services provided in Tanzania by non-resident companies to be subject to VAT. This includes the services that we provide to you. 

Please provide your VAT registration number (VRN) before 29 February 2024. Also, please confirm if you’re registered for VAT and, if so, provide the VAT number and an attestation of your VAT registration before 31 October 2023.

From 1 March 2024  if you haven’t provided us with your VAT registration number (VRN), a confirmation that you are VAT registered and a copy of your VAT registration attestation, we’ll apply 18% VAT to the commission invoices we send you. 

If we do apply this VAT, we’ll pay it to the Tanzanian tax authorities in full. This doesn’t impact any VAT charged to guests on the price of their stay at a property – it only concerns the commission invoices we send to accommodation partners.

What does this mean for me?

As an accommodation partner in Tanzania, we won't charge 18% VAT if you provide us with the following information:

  • Your VAT registration number is VRN
  • Confirmation that you’re VAT registered
  • A copy of your VAT registration certificate

If you do not provide the information requested above, we will charge 18% VAT.


What you need to do

Please provide us with the requested information by 29 February 2024. Please follow the below steps:

  1. Log in to the extranet
  2. Click on Finance
  3. Click on VAT Details or click on Finance settingsVAT details and then Edit details
  4. Indicate whether you’re VAT registered and then provide us with your VAT number
  5. If you are VAT registered, you’ll also need to provide us with a copy of your VAT certificate (i.e. VRN).

Understanding VAT

As soon as you are VAT registered, you’ll be able to obtain a certificate from the local Tax Authorities. We require a copy of this certificate from you.


Frequently asked questions

  • If you don’t provide us with all this information, we’ll apply 18 % VAT to commission invoices that we send you from 1 March 2024. You’ll need to pay the total amount of each invoice, the commission amount and the VAT amount, to us. We’ll pay the VAT to the Tanzanian tax authorities in full.

  • We’ll start applying VAT as of 1 March 2024 to accommodation partners in Tanzania who haven’t provided us with a confirmation that they are VAT registered, their VAT number and VAT certificate. Those invoices will cover commissions related to reservations where guests checked out in February 2024.

  • After 1 March 2024, if you receive a commission invoice from us that includes VAT but you believe that you’ve provided us with the information mentioned above, please check in the extranet to make sure that the information you’ve provided is saved. To do this, follow the instructions in section 2 of this article.

    In case you provided all information to us, we’re sorry for any inconvenience and we’ll be happy to correct this by crediting the incorrect commission invoice and issuing a correct invoice without VAT. In order to do so we kindly ask you to provide us with your VAT number and certificate before the end of month as of the issuance of the invoice. To ask us to do this, please dispute the original invoice by following the instructions in this article.

  • Zanzibar is considered as an excluded territory not subject to Tanzania Mainland VAT legislation. Therefore we will not apply VAT to Zanzibar partners.

  • Yes, if you’re not registered for VAT then the VAT applied to the commission invoices we send you is unfortunately likely to be an additional cost for you. We recommend that you contact your tax advisor or accountant in this regard.

  • Once you are VAT registered please provide us with your VAT number and a copy of your VAT registration certificate  by following the instructions in section 2 of this article. Until then, we’ll continue to apply VAT to the commission invoices we send you. Once you’ve provided us with a confirmation of your VAT registration, your VAT number and a copy of your VAT registration certificate, we’ll stop applying VAT to the commission invoices we send you as soon as possible. You’re responsible for reporting any VAT you might owe to the Tanzanian tax authorities yourself.

  • In case you have a VAT registration it is of utmost importance that you provide us with the required information. By doing so, we avoid charging Tanzanian VAT on our commission when we shouldn't do so. However, in the event that you haven’t been able to provide us with the requested information in time but will do so in a later stage, we’ll correct the VAT that we shouldn’t have charged by the issuance of a credit invoice. We’ll only do this in case you provide proof that you had a VAT registration for the applicable period.  In this regard, we kindly ask you to provide us with your VAT number and certificate within 15 days as of the issuance of the invoice.

  • You’ll find our VAT number on the commission invoices we send you.

  • Please visit the Tax Authority website to find more information.

  • With Booking VAT registration for VAT in Tanzania, we’ll apply VAT to our commission invoices where required in accordance with the Tanzania VAT legislation, and we’ll pay that VAT to the Tanzania tax authorities in full.

    Please note, Booking.com is a Dutch company, so our VAT registration in Tanzania is separate from our obligations to pay other taxes in the Netherlands.

  • If you have further questions about your tax obligations, we recommend that you contact your tax advisor or accountant. Unfortunately, we can’t provide advice about your or your property’s specific tax obligations.

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