Joseph Isangura
The Tanzania Revenue Authority (TRA) has issued a strict 30-day deadline for online entrepreneurs to register their businesses for tax purposes, marking a decisive move to formalize the rapidly expanding digital economy.
This directive affects a broad range of individuals earning income through online platforms, including those offering short-term property rentals through services like Airbnb, as well as those selling products via social media platforms such as Facebook, Instagram, TikTok, and WhatsApp.
Formalizing Online Businesses
According to TRA officials, the aim is to ensure that all businesses — regardless of how or where they operate — comply with national tax regulations. Those failing to meet the registration deadline risk facing penalties, audits, and potential prosecution under Tanzanian tax law.
The order comes amid the growing popularity of e-commerce and social selling, particularly among young entrepreneurs and small business owners. The move aligns with broader global efforts to regulate the informal sector and increase domestic revenue collection.
“We want to support innovation, but it must happen within the law,” said one TRA spokesperson. “No one is exempt from taxation just because they operate online.”
Who Needs to Register?
Online business operators who:
- Sell goods via e-commerce platforms or social media
- Rent out homes or rooms via short-stay platforms
- Offer digital services, tutoring, or creative work for pay
- Earn above TZS 100 million annually (approx. USD 40,000)
…are required to register for a Taxpayer Identification Number (TIN) and, in some cases, Value Added Tax (VAT).
A Booming Sector Comes Under Scrutiny
Tanzania is witnessing an explosion of online commerce, mirroring trends in countries like Kenya and Nigeria. Platforms such as Jumia and WhatsApp business groups have enabled informal trading at an unprecedented scale.
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But as this sector grows, the government wants to ensure that its benefits extend beyond sellers to the broader economy through proper taxation and regulation.
Benefits of Registration
TRA argues that formalization brings more than just obligations:
- Access to financial services, including business loans
- Legal protection under commercial law
- Potential government tenders or grants
- International credibility for expanding businesses
TRA’s Strategy Going Forward
The authority plans to launch public education campaigns, simplify the TIN application process, and collaborate with platforms like Vodacom M-Pesa and Tigo Pesa to track digital transactions. It may also leverage data from ISPs and mobile money providers to identify unregistered traders.
What You Should Do
If you’re running an online business in Tanzania:
- Apply for a TIN at www.tra.go.tz
- Register for VAT if your turnover exceeds the threshold
- Keep clear digital records of income and expenses
- Follow TRA updates and attend public forums when announced
Global Perspective
This initiative mirrors recent actions in other countries. For example:
- India’s GST applies to digital sellers
- Kenya Revenue Authority now taxes influencers and YouTubers
- European Union introduced new VAT rules for online platforms in 2021
