Executive summary

The Government of Tanzania has issued the Excise (Non-Resident Service Provider) Regulations, 2026 (the Regulations), which came into operation from 1 July 2026.

The Regulations provide the administrative framework for the excise duty obligations introduced for nonresident providers of specified services delivered through the internet in Tanzania. In particular, the Regulations prescribe the services (covered services), the registration process, the basis for determining whether services are delivered in Tanzania, the filing and payment deadline as well as the permitted payment currency and key compliance consequences.

Nonresident service providers that were already providing covered services in Tanzania before the Regulations came into effect are required to register within 90 days from the commencement date. Service providers should assess whether their services fall within the Regulations and whether they supply those services to unregistered resident customers in Tanzania.

Detailed discussion

Scope of services

The Regulations define services falling within the scope to include:

• Electronic communication services
• Pay-to-view television services, including subscription video-on-demand streaming services that allow users to watch a vast library of television shows, movies, documentaries, etc.
• Commercial advertisement on betting, gaming or lotteries services
• Money transfer and payment services delivered through the internet in Tanzania.

A service provider is a nonresident person who provides or delivers the covered services through the internet to an unregistered person (defined as a resident person who has not been registered or required to file returns under the Excise (Management and Tariff) Act for the service delivered in Tanzania).

Based on the Excise (Management and Tariff) Act (principal legislation under which the Regulations are issued) excise duty on the covered services is payable by the nonresident supplier at the following rates:

Registration

A nonresident person who provides the covered services is required to apply for registration online to the Commissioner General (CG) of the Tanzania Revenue Authority (TRA). The applicant must furnish the following information to be registered:

• The name of the business and trading name
• Certificate of incorporation
• Name of the contact person for tax matters
• Registered business address
• Telephone number of the contact person, email address of the business and contact person
• Website or URL through which the business is conducted, and any other information the CG may require

Once registered, the applicant will be issued with a Taxpayer Identification Number (TIN) for filing tax returns and paying excise duty. A nonresident person who is registered as a service provider is exempt from acquiring and using an electronic fiscal device to issue invoices to its Tanzania customers.

Determination of services delivered in Tanzania

Covered services are treated as delivered in Tanzania to an unregistered person if certain indicators connect the recipient to Tanzania. These indicators include the recipient of services having:

• A physical address in Tanzania, a Tanzanian bank account or billing address
• An internet protocol address of the device used or another geolocation method in Tanzania
• A Tanzanian mobile country code on the subscriber identity module card
• A fixed landline in Tanzania through which the service is delivered
• Any other commercially relevant information indicating Tanzanian residence

If two factors support the fact that the recipient is an unregistered person and two factors support residence in another country, the service provider must determine the recipient's residence based on the most reliable indicators. The Regulations list the indicators in order of reliability, starting with the most reliable.

Filing of returns and payment of excise duty

A registered service provider is required to file its returns electronically and pay the required duty by the seventh day of the month following the month to which the return relates. If there is an error in a return, the service provider may apply to the CG requesting permission to rectify the errors and resubmit the return.

Payment of the duty must be made to a bank account designated by the CG in Tanzanian shillings or an equivalent convertible currency, using the Bank of Tanzania prevailing exchange rate on the date of payment.

De-registration

A registered service provider who permanently ceases to be eligible to provide the covered services is required to notify the CG to be de-registered.

The CG may also de-register a service provider in circumstances if:

• The service provider ceases to provide services
• The service ceases to be among the covered services
• The service provider has been banned from providing services in Tanzania in accordance with applicable law

Consequences for noncompliance

The Regulations prescribe consequences for noncompliance, including penalties for false or misleading statements, interest on late payment of duty, and fines and/or imprisonment for an offense.

Implications

The Regulations operationalize the excise duty compliance framework applicable to nonresident suppliers of specified electronic services to unregistered resident customers in Tanzania. Nonresident suppliers should assess whether their electronically supplied services fall within the prescribed categories, determine whether their customer base includes unregistered resident persons in Tanzania and establish whether registration is required.

Affected nonresident service providers should also evaluate whether their systems can capture and retain reliable customer-location indicators, support monthly electronic filing, calculate the duty in the appropriate currency and facilitate payment to the designated bank account within the prescribed deadline. Existing providers should pay particular attention to the 90-day grace period for compliance with the registration requirements.

Affected businesses may need to consider coordination across their tax, finance, legal, billing, customer onboarding and technology teams when implementing compliance processes. Businesses may also need to consider whether their pricing, customer terms and internal compliance calendars need to be updated to reflect the new excise duty obligations.