The Tanzania Revenue Authority (TRA) has issued a strong reminder to all individuals and entities engaged in online commerce that they are legally required to comply with tax obligations under the Income Tax Act (Chapter 332).
This mandate applies to income earned from business activities, investments, and employment, including all digital transactions such as sales of goods and provision of services across local, regional, and international markets.
To ensure compliance, TRA requires all online business operators to register and obtain a Tax Identification Number (TIN) in accordance with the Tax Administration Act (Chapter 438), Section 22.
TRA has clarified that any business generating revenue through digital channels with an annual turnover exceeding TZS 4 million (approximately USD 1,600) and targeting Tanzanian consumers must register with the authority and remit taxes, even if they do not have a physical office or officially registered business premises in Tanzania.
This includes individuals selling products through social media platforms like Instagram, Facebook, WhatsApp Business, TikTok, and X (formerly Twitter), small and medium-sized enterprises (SMEs) operating e-commerce via digital marketplaces or their own websites, as well as property owners and service providers offering short-term rentals through platforms such as Airbnb, Booking.com, Agoda, and Expedia.
On July 24, 2025, the TRA Commissioner General announced a registration deadline for online businesses running from August 1 to August 31, 2025.
In response to requests from SMEs for additional time, TRA extended the registration deadline for this group to December 31, 2025.
This extension aims to provide sufficient time for taxpayer education, address business concerns, and facilitate smoother registration processes to minimize disruption.
Large-scale operators in the online rental market and digital platform owners, however, are expected to meet the original August 31 deadline without extension.
TRA’s move reflects a broader global push to bring the rapidly growing digital economy within formal tax systems.
The authority is intensifying efforts to expand the tax base by integrating online businesses, ensuring they contribute fairly to national revenue.
Businesses are urged to meet their registration and tax obligations promptly to avoid fines and penalties. TRA has also committed to ongoing support, providing education, guidance, and streamlined systems to facilitate compliance and build understanding among online business operators throughout Tanzania.