CassKai Tanzania - IFRS Accounting Software & TRA EFD/VFD E-Invoicing

Q: What accounting standard is mandatory in Tanzania?

Tanzania applies full IFRS for companies listed on the Dar es Salaam Stock Exchange, banks and insurance companies, and IFRS for SMEs for non-listed SMEs. The NBAA (National Board of Accountants and Auditors) oversees standards enforcement and the certification of accounting professionals. CassKai natively supports both frameworks and automatically generates compliant financial statements: Statement of Financial Position, Statement of Comprehensive Income, Statement of Cash Flows and Statement of Changes in Equity, in TZS with USD restatement if needed.

Q: What is the difference between EFD and VFD in Tanzania?

The EFD (Electronic Fiscal Device) is the legacy system in place since 2010: a physical box certified by TRA that every VAT-registered taxpayer must purchase and use to issue invoices. The VFD (Virtual Fiscal Device) is the new cloud generation launched in 2024: it removes the physical box and enables direct API integration between business software and TRA. CassKai positions itself as a VFD-ready solution: our customers can migrate from physical EFD to VFD cloud with no service disruption, benefiting from improved fluidity, reduced maintenance costs and native integration with their accounting, invoicing and M-Pesa payments.

Q: What are the VAT rates in Tanzania and how are returns filed?

Tanzania applies two VAT rates: 18% (standard) and 0% (exports and certain essential goods). The registration threshold is set at 200 million TZS (~EUR 75,000) of annual turnover. Monthly returns are filed via the TRA e-Filing portal before the 20th of the following month. Sales data is automatically pre-filled via the EFD/VFD system. CassKai computes collected and deductible VAT, prepares returns in TRA format and synchronises data with e-Filing and EFD/VFD with no manual re-entry.

Q: How does CassKai handle Tanzanian PAYE and social contributions?

CassKai supports PAYE (progressive scale from 9% to 30%), NSSF (10% employer and 10% employee, totaling 20% of gross salary), SDL (4% borne by the employer, for companies with 4 or more employees) and WCF (0.5% borne by the employer). Automatic payslip generation, contribution calculations and preparation of returns to be filed via e-Filing before the 7th of the following month for PAYE/SDL/WCF, and before the end of the month for NSSF.

Regulations

IFRS and IFRS for SMEs

Tanzania applies full IFRS for public interest entities (companies listed on the Dar es Salaam Stock Exchange, banks, insurers) and IFRS for SMEs for small and medium-sized enterprises. The National Board of Accountants and Auditors (NBAA) oversees the application of these standards and the certification of accounting professionals. Mandatory financial statements: Statement of Financial Position, Statement of Comprehensive Income, Statement of Cash Flows and Statement of Changes in Equity.

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TRA EFD and VFD - Transition to cloud-based Virtual Fiscal Device

Tanzania is one of the first African countries to have mandated e-invoicing. The legacy system relies on physical Electronic Fiscal Devices (EFD) certified by the Tanzania Revenue Authority (TRA), distributed to all VAT-registered taxpayers since 2010. Since 2024, TRA has been actively promoting migration to Virtual Fiscal Devices (VFD) in the cloud, removing the need for a physical box and enabling direct API integration with business management software. Every invoice is transmitted in real time to TRA and receives a unique fiscal number with QR code.

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Income Tax Act and Value Added Tax Act

Tanzanian tax framework governing corporate income tax (30% for residents, 30% for non-resident branches), VAT (18% standard rate, 0% on exports) and PAYE (progressive scale from 9% to 30% on salaries). The VAT registration threshold is set at 200 million TZS (~EUR 75,000) of annual turnover. Updated annually through the Finance Act.

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NSSF, SDL and WCF

Mandatory social contributions: NSSF (National Social Security Fund) at 10% of gross salary on the employer side and 10% on the employee side; SDL (Skills and Development Levy) at 4% of gross salary borne by the employer; WCF (Workers Compensation Fund) at 0.5% of gross salary borne by the employer. Monthly filings via the NSSF and TRA portals.

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E-invoicing

TRA EFD (Electronic Fiscal Device) et VFD (Virtual Fiscal Device) cloud

Tanzania has mandated e-invoicing for VAT-registered taxpayers since 2010 through physical Electronic Fiscal Devices (EFD) certified by the Tanzania Revenue Authority (TRA). Since 2024, TRA has launched the migration to Virtual Fiscal Devices (VFD), a cloud-based solution that removes the need for a physical box and enables direct API integration with business management software. Every invoice is transmitted in real time to TRA, receives a unique fiscal number and a QR code allowing instant verification by buyers. CassKai integrates natively with VFDs certified by TRA and eases the transition for companies still equipped with physical EFDs, with no service disruption. Native integration of M-Pesa (Vodacom), Tigo Pesa and Airtel Money payments reflects the reality of collections in Tanzania.

✓Direct API integration with TRA-certified VFD cloud for real-time invoice transmission
✓Assisted migration from physical EFD to VFD cloud with no business interruption
✓Generation of the TRA fiscal number and verification QR code on every invoice
✓Automatic VAT calculation at 18% (standard) or 0% (exports) and 200M TZS threshold management
✓Native integration of M-Pesa (Vodacom), Tigo Pesa and Airtel Money for automatic reconciliation of collections
✓Secure electronic retention of invoices and tax journals for 5 years (Tax Administration Act 2015)

Tax Specifics

Tanzanian tax regime

The Tanzanian tax system is governed by the Income Tax Act 2004, the Value Added Tax Act 2014 and the Tax Administration Act 2015, and administered by the Tanzania Revenue Authority (TRA). Tanzania is a member of the East African Community (EAC) and SADC, giving it access to two free trade areas. The TRA e-Filing portal is the single entry point for all tax filings, complemented by the EFD/VFD system for invoicing.

Main taxes and duties

VAT: standard rate of 18%, 0% on exports and certain essential goods. Registration threshold: 200 million TZS (~EUR 75,000) of annual turnover. Monthly filings via e-Filing before the 20th of the following month.
Corporate Income Tax (CIT): rate of 30% for resident companies and non-resident branches. Reduced rate of 25% for newly listed companies on the Dar es Salaam Stock Exchange (first 3 years).
PAYE (Pay As You Earn): progressive scale from 9% to 30% on salaries. Withheld monthly by the employer.
Withholding Tax: withheld at source on dividends (5% resident DSE / 10% others), interest (10%), royalties (15%), service fees (5% resident / 15% non-resident) subject to tax treaties.
Skills and Development Levy (SDL): 4% of gross salary borne by the employer (companies with 4 or more employees).
Workers Compensation Fund (WCF): 0.5% of gross salary borne by the employer.

Filing obligations

Monthly VAT return: filed via e-Filing before the 20th of the following month. Data is pre-filled via EFD/VFD.
Monthly PAYE: filing and payment before the 7th of the following month.
Monthly NSSF: remittance before the end of the month following the payroll month.
SDL and WCF: monthly remittance before the 7th of the following month.
Annual CIT: provisional return within 3 months after year-end, final return within 6 months after year-end. Quarterly installments are mandatory.
TIN (Taxpayer Identification Number): unique tax identifier mandatory for any entity or individual carrying out taxable operations.
EFD/VFD: real-time transmission of all invoices to TRA since 2010 (physical EFD) and progressively via VFD cloud since 2024.

Accounting specifics and IFRS

Full IFRS: mandatory for companies listed on the Dar es Salaam Stock Exchange (DSE), banks, insurance companies and other public interest entities.
IFRS for SMEs: applicable to non-listed SMEs. Simplified framework of 35 sections.
Financial statements: Statement of Financial Position, Statement of Comprehensive Income (P&L + OCI), Statement of Cash Flows (IAS 7), Statement of Changes in Equity and notes.
Functional currency: Tanzanian Shilling (TZS). Strong USD exposure for mining operators, exporters of coffee, tea and cashew nuts, and operators of the Port of Dar es Salaam.
Mandatory audit: beyond the thresholds defined by the Companies Act 2002, by an auditor certified by the National Board of Accountants and Auditors (NBAA).

Mining sector and specific tax regime

Tanzania is a major player in the African mining sector (gold, Tanzanite gemstones, coal, uranium). The sector is governed by the Mining Act 2010 (revised in 2017) and is subject to a specific tax regime with royalties (4% to 6% depending on the mineral), Local Government Levy (0.3%), Government Free Carried Interest and partial local processing obligations. CassKai integrates accounting templates specific to the mining sector and facilitates coupled TRA / Ministry of Minerals filings.

Frequently Asked Questions

What accounting standard is mandatory in Tanzania?

Tanzania applies full IFRS for companies listed on the Dar es Salaam Stock Exchange, banks and insurance companies, and IFRS for SMEs for non-listed SMEs. The NBAA (National Board of Accountants and Auditors) oversees standards enforcement and the certification of accounting professionals. CassKai natively supports both frameworks and automatically generates compliant financial statements: Statement of Financial Position, Statement of Comprehensive Income, Statement of Cash Flows and Statement of Changes in Equity, in TZS with USD restatement if needed.

What is the difference between EFD and VFD in Tanzania?

The EFD (Electronic Fiscal Device) is the legacy system in place since 2010: a physical box certified by TRA that every VAT-registered taxpayer must purchase and use to issue invoices. The VFD (Virtual Fiscal Device) is the new cloud generation launched in 2024: it removes the physical box and enables direct API integration between business software and TRA. CassKai positions itself as a VFD-ready solution: our customers can migrate from physical EFD to VFD cloud with no service disruption, benefiting from improved fluidity, reduced maintenance costs and native integration with their accounting, invoicing and M-Pesa payments.

What are the VAT rates in Tanzania and how are returns filed?

Tanzania applies two VAT rates: 18% (standard) and 0% (exports and certain essential goods). The registration threshold is set at 200 million TZS (~EUR 75,000) of annual turnover. Monthly returns are filed via the TRA e-Filing portal before the 20th of the following month. Sales data is automatically pre-filled via the EFD/VFD system. CassKai computes collected and deductible VAT, prepares returns in TRA format and synchronises data with e-Filing and EFD/VFD with no manual re-entry.

How does CassKai handle Tanzanian PAYE and social contributions?

CassKai supports PAYE (progressive scale from 9% to 30%), NSSF (10% employer and 10% employee, totaling 20% of gross salary), SDL (4% borne by the employer, for companies with 4 or more employees) and WCF (0.5% borne by the employer). Automatic payslip generation, contribution calculations and preparation of returns to be filed via e-Filing before the 7th of the following month for PAYE/SDL/WCF, and before the end of the month for NSSF.

Does CassKai handle M-Pesa and mobile money in Tanzania?

Yes, CassKai natively integrates the main Tanzanian mobile money operators: M-Pesa (Vodacom) which is the dominant operator, Tigo Pesa and Airtel Money. Automatic reconciliation of customer collections with EFD/VFD invoices, tracking of transaction fees by operator, generation of accounting journals and cash dashboards consolidating cash, mobile money and bank accounts. CassKai also supports the Tanzanian Shilling (TZS) and multi-currency (USD, EUR, GBP) for mining operators and exporters with Bank of Tanzania exchange rates and FX gain/loss management.

Is CassKai suitable for the Tanzanian mining sector and maritime trade?

Yes, CassKai integrates accounting templates specific to the mining sector (gold, Tanzanite, coal, uranium) with royalty calculation (4% to 6%), Local Government Levy (0.3%) and Government Free Carried Interest. For operators in the Port of Dar es Salaam and EAC/SADC regional trade players, CassKai handles USD operations, FX gains/losses, withholding tax on cross-border services and the consolidation of Tanzanian entities with parent companies in other African countries or in Europe (IFRS), making it easier to manage pan-African holdings and groups with operations in Tanzania.

The accounting and financial solution designed for Tanzania

Regulations

IFRS and IFRS for SMEs

TRA EFD and VFD - Transition to cloud-based Virtual Fiscal Device

Income Tax Act and Value Added Tax Act

NSSF, SDL and WCF

E-invoicing

TRA EFD (Electronic Fiscal Device) et VFD (Virtual Fiscal Device) cloud

Tax Specifics

Tanzanian tax regime

Main taxes and duties

Filing obligations

Accounting specifics and IFRS

Mining sector and specific tax regime

Frequently Asked Questions

What accounting standard is mandatory in Tanzania?

What is the difference between EFD and VFD in Tanzania?

What are the VAT rates in Tanzania and how are returns filed?

How does CassKai handle Tanzanian PAYE and social contributions?

Does CassKai handle M-Pesa and mobile money in Tanzania?

Is CassKai suitable for the Tanzanian mining sector and maritime trade?

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