Is #Tanzania shooting herself in the foot with constant tax increases on #tourism services?

TANZANIA’S AIR OPERATORS LAMENT VAT DECISION ON AIR SERVICES

(Posted 22nd June 2018)

Coastal has just sent out the following information about a likely massive increase in air service bills should VAT become effective on 01st of July this year:

Dear Esteemed Customer,

We would like to bring to your attention some important changes in the Tanzanian Tax laws that could come into effect from 1st July 2018.

The Tanzanian Government’s Budget 2018/19 changes include the abolishment of VAT exemption on Tourist Charter Services effective from 1st of July.

The final Finance Bill has yet to be passed and the outcome of this will be known within the next days or so, anyhow if we anticipate the worst outcome and that the change would go through, this would mean that VAT will need to be charged on invoices raised for services after 1st July 2018.

We apologize for the short notice and nature of the communication, but the situation is out of our control and the changes have only been announced by the government in the public domain very recently.

We will keep you updated on the outcome of the Finance Bill.

We at Coastal thank you for your continuous support, and we look forward to continuing to do business with you.

Please do not hesitate to contact our Financial Department for any further clarification.


Kind Regards,
The Flying Safari Team



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