EFD and VFD receipts in Tanzania

What an EFD and a VFD are

TRA describes an EFD as a machine used in business for management control, including sales analysis and stock control, that meets legal requirements ¹. A VFD is a software-based system hosted in the cloud and approved by the Commissioner General. TRA says it is used to capture, transmit and keep records of sales data electronically ².

• Electronic Tax Register (ETR): for retailers that issue receipts manually ¹.
• Electronic Fiscal Printer (EFP): for computerised retail outlets. It connects to a computer network and stores every sale in its fiscal memory ¹.
• Electronic Signature Device (ESD): signs computer-produced documents such as tax invoices with a unique signature printed on each one ¹.
• Electronic Fiscal Pump Printer (EFPP): for petrol stations. It connects to a fuel pump and prints a receipt for each sale ¹.
• Virtual Fiscal Device (VFD): cloud software approved by the Commissioner General ².

Who must use a fiscal device

TRA says a second phase of EFD rollout began in 2013 ¹. It covers persons not registered for VAT with annual turnover of TSh 11 million and above, traders in prime business areas identified by rent payable, and traders in named sectors ¹. The sectors listed are spare parts, hardware, mini supermarkets, petrol stations, mobile phone shops, sub-wholesale shops, bars and restaurants, pharmacies and electronics shops ¹.

TRA says registration is gradual and based on each trader's business, experience and capacity ¹. The Tax Administration Act lists section 36 on the use of an electronic fiscal device and section 86 on the offence of failing to use one ⁴.

How the device and the receipt work

TRA runs a public receipt verification portal that asks for a receipt verification code ⁵.

• The trader must issue a fiscal receipt or invoice for every sale ¹.
• The trader must tell the Commissioner of any change or malfunction within 24 hours ¹.
• The supplier must install, configure and repair the machine within 48 hours ¹.
• The device stores data permanently, produces a daily "Z" report every 24 hours and sends tax information to the TRA system ¹.
• Each receipt is uniquely identifiable and the device has an irreversible date mechanism ¹.
• The tax memory holds data for at least 5 years or 1,800 days of transactions ¹.
• The device has at least 48 hours of power backup ¹.

Approved suppliers

Traders get devices from suppliers certified by the Commissioner General ². Certified suppliers import, distribute and sell EFD and VFD devices, install and configure them, train users and provide after-sales support including repairs ². TRA sets a minimum capital of TSh 1.5 billion for EFD suppliers and TSh 50 million for VFD suppliers ². Suppliers need a qualified technical team and at least five years of experience supplying fiscal devices or similar ICT equipment ². TRA publishes the approved list as a PDF dated January 2023 ¹. TRA pages read for this guide give no device prices ^1,2.

Penalties

The TRA page text on the buyer fine reads "less than 2" currency points as the lower limit, which appears to be a typing error for "not less than 2" ¹.

Audit findings

A CAG performance audit on the administration of EFDs was tabled in Parliament on 16 April 2025, as reported by Jacob Mosenda of The Citizen. The report found that over 88 percent of traders holding business TINs were not registered for EFDs ⁶.

As reported by The Guardian on 17 April 2025, the audit covered 2023/24 and found extensive failure to monitor sales and stocks. It said TRA had not sufficiently identified and registered eligible EFD users, due to incomplete trader turnover data and ineffective use of available information ⁷. Neither report carried a TRA response ^6,7.

In January 2025, TRA Commissioner General Yusufu Mwenda said EFDs and the excise tax stamp system had significantly contributed to meeting revenue targets, as reported by Daily News ⁸.