fiscal receipt, means a receipt or invoice issued by using fiscal device, Government electronic payment gateway system or any other electronic system approved by the Commissioner General
Under Section 97(1)(b) of the Tax Administration Ac Cap.438 R.E 2023, every trader, business operator, or service provider required to use a fiscal device is legally obligated to issue a fiscal receipt immediately upon selling goods, rendering services, or receiving payment.
The law clearly states that failure to issue a fiscal receipt at the time of transaction constitutes a criminal offence. This legal requirement was introduced to strengthen transparency, accountability, and tax compliance within Tanzania’s business environment.
Fiscal receipts play an important role in ensuring proper tax administration and protecting both consumers and the Government. They provide proof of payment to customers and enable the Tanzania Revenue Authority (TRA) to accurately monitor business transactions and tax obligations.
Proper issuance of receipts contributes to government revenue collection, which supports essential public services such as healthcare, education, roads, water supply, and other national development projects. Businesses that fail to issue receipts undermine fair competition and weaken public trust in lawful trade practices.
failure to issue fiscal receipts, the law also criminalizes other forms of misuse of fiscal devices. These include issuing false or incorrect fiscal receipts, using fiscal devices in a manner that misleads the system or the Commissioner, and tampering with fiscal machines so that they produce inaccurate or false records.
Such acts are considered serious violations because they interfere with proper tax collection and economic accountability. The law under Section 97(1)(b) provides for a fine equivalent to twenty percent of the value of goods sold or services rendered, or 100 currency points, whichever amount is greater. In addition, the offender may be sentenced to imprisonment for a term not exceeding three years, or may receive both the fine and imprisonment. Not only this but also:
A person who fails to demand or report the denial of issuance of a fiscal receipt upon payment for, or receipt of, goods or services commits an offence and, upon conviction, shall be liable to a fine equivalent to twenty percent of the tax evaded or two currency points, whichever is greater. Therefore, liability does not rest solely on the person who fails to issue a fiscal receipt, but also extends to the customer or recipient of the goods or services who fails to demand or report the denial of such receipt as provided by the act per section97(4).
The public is hereby reminded that the law requires every person conducting business operations, unless specifically exempted under any tax law, to acquire and properly use a fiscal device from the commencement of business operations or within the period prescribed by the Commissioner.
Failure to acquire or use a fiscal device, failure to issue a fiscal receipt at the time of supplying goods or services or receiving payment, issuing false or incorrect fiscal receipts, manipulating the fiscal device system, or tampering with a fiscal device constitutes an offence under the law. Upon conviction, an offender may be liable to a fine of twenty percent of the value of goods sold or services rendered, or one hundred currency points, whichever is greater, or imprisonment for a term not exceeding three years, or both.
Furthermore, where tax evasion is involved, the offender may, in addition to the prescribed penalties, be liable to a fine equal to twice the amount of tax evaded or imprisonment for a term not exceeding three years.
These penalties demonstrate the Government’s commitment to combating tax evasion and ensuring compliance with fiscal laws.
In compliance with fiscal device and fiscal receipt requirements is essential for promoting transparency, accountability, and effective tax administration in Tanzania. Both businesses and consumers have a legal duty to issue and demand fiscal receipts in every transaction, and failure to comply may attract serious penalties, including fines and imprisonment. At Dar State Attorney, we assist individuals and businesses in understanding tax laws, ensuring legal compliance, and addressing tax-related issues and regulatory matters through professional legal guidance and advisory services.
Antonia J. Ndutu is a junior associate currently training at Darstate Attorneys. She is passionate about learning and professional growth, with a strong interest in law in general. Antonia is dedicated to building her skills and gaining practical experience across different areas of legal practice. She aspires to develop into a versatile and competent lawyer in the future.
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