VAT and Duties Exemptions On Solar Products
What are the VAT and Duties Exemptions On Solar Products in Tanzania? Here is what the EAC Customs Management Act states.
“Item 26 Part B of the Fifth Schedule to the EAC Customs Management Act provides for exemption of duty on ‘Specialized equipment for development and generation of Solar and Wind Energy, including accessories, spare parts and deep cycle batteries which use and/or store solar power’. The catch word in the provision is ‘generation’ which means the equipment under exemption cannot extend to distribution equipment, accessories or spare parts. All other components used after the generation point are excluded from the exemption.”
Here is what that means for you.
Solar Products that are exempted from VAT during importation:
- Supply of solar panels, modules, solar charger controllers, solar inverter, solar lights, vacuum tube solar collectors and solar battery.
Solar Productts Exempted from Tanzania Customs Duties:
- Solar Panels, Solar Batteries, Solar Charger Controllers, Solar Inverters
Solar Products that are not duty exempted:
- Solar bulbs, Solar TVs, Solar Radio, Solar Fridge, Solar cables (unless imported with solar exempted equipment) and other solar products that do not generate or distribute solar power.
Solar Spar Parts and Accessories are not exempted from customs duties. Only Solar generating equipments are duty free.
Full duties exemption applies to Specialized Solar Powered Equipment including deep cycle batteries which use and/or store solar power.