The Tanzania Revenue Authority (TRA) has issue an ultimatum to businesses in Tanzania to purchase Electronic Fiscal Devices (EFD) by November 15, 2013, or face penalties.
Generose Bateyunga, deputy commissioner for domestic revenue at the TRA, said those who did not purchase the devices by the deadline will be fined a minimum of TZS3 million (US$1,900) as per the law.
“We had given a grace period of six months since May this year for businesspersons to acquire the devices and we have given a contract to EFD distributors who have since opened offices in all regions, but less than 10 per cent have complied,” he said, reports Daily News.
The TRA started implementing the second phase of EFD in 2013 with the aim of boosting revenue collection and simplifying tax administration.
The system was planned to be implemented in two main phases, with the implementation of phase one beginning in July 2010, involving only VAT-registered traders, and the second phase covering non VAT-registered traders.
Richard Kayombo, director of taxpayer services and education at the TRA, said that the grace period given was more than enough, and urged traders to take the initiative before the deadline elapsed.
“Our theme in EFD is that ‘when you sale give a receipt, when you buy ask for a receipt’ and that is to say that sellers and buyers have a role to play and can be equally punished for non-compliance,” he said.
Bateyunga stated that traders that have registered for VAT and those not registered but with sales of TZS40 million (US$25,000) per year ought to acquire EFDs as per the Tax Act 2010 and Income Tax Act 2012.
“By using EFD it does not mean that the business is registered for VAT, it is rather a receipt system that helps TRA acquire accurate data of business operations and help in easing inconveniences for traders,” she said.