Introduction of VAT in Insurance Industry
The Tanzania Regulatory authority (TIRA) has since the 1st of July 2015 harmonized the rates for all Insurance companies in Tanzania and introduced VAT which is 18%.
As per the VAT Act 2014 approved by the parliament, VAT has been introduced on Insurance Premium with effect from 1st July 2015. The VAT @ 18% of premium needs to be collected from insured for all policies commencing from 1st July 2015 and are to be deposited with TRA within 30 days of the month end. The VAT is applicable on all lines of insurance except the following:
1. On Comesa Policies
2. On Marine Cargo Export policies
3. Health Policies
4. Life insurance policies.
ATI would be giving advertisement in newspapers for making the general public aware of VAT on insurance premium.