TRA issues ultimatum on electronic receipts

The Tanzania Revenue Authority (TRA) has issued ultimatum until November 15 for businesspersons to purchase Electronic Fiscal Devices (EFD) or else face severe penalties.

The TRA Deputy Commissioner for Domestic Revenue, Ms Generose Bateyunga, said in Dar es Salaam on Monday that those who will fail to comply by the said date will be fined a minimum of 3m/- 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 distributers who have since opened offices in all regions but less than 10 per cent have complied," she said.

She noted that according to the Value Added Tax Act 2010 and Income Tax Act 2012, traders registered for VAT and those who are not registered but with sales amounting to 40m/- per annum should acquire EFD.

"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.

She added that any business of which sales per day reaches 40,000/- and 40m/- per annum should use EFD in giving receipts.

"We still have enough time remaining for voluntary compliance, whoever fails to comply will face it rough when we launch crackdown campaign come November," she warned.

The TRA Director for Taxpayer Services and Education, Mr Richard Kayombo, observed that the grace period given was enough, asking traders to act now as time is running out.

"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 cautioned.

In another development, the TRA Ilala Regional Manager, Mr Luvanda Ngoloka, reported that a crackdown for goods being transported upcountry without or with dubious receipts was underway in Dar es Salaam.

"We have established that traders are selling goods to counterparts in upcountry without receipts or with dubious ones, which does not indicate actual prices. We have launched a campaign in all the loading sites and in the streets," he said.

Mr Ngoloka added that so far TRA has impounded three tonnes of various goods which have since been abandoned by traders who have failed to pay fines which are in some cases higher than the value of goods confiscated.

"We will have our officers in all loading sites such as Kisutu, Kidongo Chekundu and Jangwani, among others, to check goods against receipts.

We all invite good citizens with information over tax invaders to inform us and we will give three per cent bonus of recovered tax resulting from such information," he said.
Source: Daily News, reported by Abdulwakil Saiboko, from Dar es Salaam, Tanzania
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