Should Tanzania introduce Google tax?

What you need to know:

Based on the data provided by United Nations Conference on Trade and Development (UNCTAD), Tanzania imports $317 million worth of digital services per year (2019 data).

For many years, these challenges were not a major concern because few services could be performed across borders. With little revenue at risk, many countries either did not include imported services in their VAT base or did not find it necessary to establish effective methods for collecting VAT on these supplies. In the past decade, surge in imported digital services has led tax agencies around the world to give greater attention to administering the VAT on imported digital services. As a consequence, countries have become increasingly concerned that no or inappropriately low amount of VAT is collected from these suppliers and that domestic businesses (who must charge VAT) are placed at a competitive disadvantage relative to non-resident businesses (who do not charge VAT or even if they charge, it is not remitted to local authorities).

Should Tanzania introduce Google tax?

What you need to know:

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