What you need to know:
- The payments will be made by the advertiser based on personal estimates; Facebook will not do direct VAT deductions.
Dar es Salaam. Beginning December 1, 2023, those who advertise on Facebook in Tanzania will be required to pay Value Added Tax (VAT).
Facebook made the announcement that it will add VAT at the applicable local tax rate to the cost of advertising services.
The VAT rate in Tanzania is 18 percent. The social media site owned by Meta has asked those who advertise in Tanzania to add a VAT registration number (VAT ID) to their Facebook ad accounts.
The payments will be made by the advertiser based on personal estimates; Facebook will not do direct VAT deductions.
An update on the Meta website said, "Beginning December 1, 2023, we will add VAT at the applicable local tax rate to the cost of your advertising services if the 'Sold To' address we have for you is in Tanzania."
In 2022, the Tanzanian government hinted at taxing tech giants like Google, Facebook, Instagram, Twitter, Apple, and all other social media services, arguing that they make a lot of money in the country yet do not pay taxes.
The Tanzania Revenue Authority (TRA) held talks with officials from Meta Platforms Inc as part of the government's plans to introduce a Digital Services Tax targeting big technology companies, with Meta, which owns Facebook, Instagram, and WhatsApp, being a major revenue source.
The Minister for Finance, Dr Mwigulu Nchemba, however, assured that once the proposed taxes start being collected from the foreign social media companies, local consumers will not be directly affected.