E - Invoice
The Tanzania Revenue Authority (TRA) issued a guideline in February 2022 that stated the changes in the electronic filing system to improve the system in place before that.
These new changes aimed to improve user experience and increase compliance of taxpayers by encouraging invoice issuance as mandated by the TRA. The first change was the ability to file VAT returns only after all the previous returns were filed. The second change was the upgradation of the EFDMS which required every EFD to be upgraded to Protocol 2.1. The second change directly affected the e-invoice in Tanzania as previously invoices did not have verification codes.

Steps to adapt to the new e-invoicing guideline in Tanzania

  • The new e-invoicing guideline by the TRA states that businesses must upgrade their EFD machines to Protocol 2.1 to successfully issue e-invoices with verification codes.
  • VAT-registered taxpayers must ensure that the current EFDs they use are compatible with the upgraded EFDMS. This can be done by getting in touch with a TRA-approved EFD supplier.
  • If the EFD in question is not compatible with the new upgrade then a new EFD must be purchased by reliable EFD suppliers, if the business wishes to continue using an EFD.
  • In case of incompatibility, businesses can use other machines such as point of sale (POS) systems, computers, and any other payment processing tool that can connect to the EFDMS without any problems.
  • Traders can contact a TRA office to understand the process involved in connecting their machine to the upgraded EFDMS.
  • Steps to generate e-invoice in Tanzania:

  • An e-invoice in Tanzania can be generated in several ways like: EFD machines, POS machines, computers, and any other payment processing systems that can connect to the upgraded EFDMS.
  • Generating an invoice using ERP software is easy as it is automatically generated when a sale is recorded.
  • After the successful integration of the ERP software with the EFDMS, the invoice details are sent directly to the TRA’s EFDMS where the invoice details are checked and authenticated. A verification code and a QR code are added to the invoice and returned to the system.
  • A VAT-registered taxpayer can now issue this e-invoice that has the verification code and QR code to the customers by printing it. Components of e-invoicing system in Tanzania
    The e-invoicing system in Tanzania consists of two components; the ERP software and the EFDMS.
  • ERP software:

    The ERP software is what many VAT-registered taxpayers use to issue invoices as it is a total package of software tools that ease business operations. The ERP software has basic features such as invoicing features that enable businesses to generate compliant invoices in Tanzania. This is the first step in ensuring tax compliance.

    When the ERP software has integrated with the EFDMS, the process of invoice authentication and verification happens automatically. The taxpayer will not notice any delays in invoice generation and can conduct business as usual. Any invoices that were issued without the verification codes will be deemed invalid by TRA because they were not generated using the upgraded EFDMS. This increased transparency is beneficial to all parties involved.

    Electronic Fiscal Device Management System (EFDMS)

    The EFDMS is the e-invoicing system that connects with the invoice generation software. Whether it is an EFD, a POS system, or an ERP software, the EFDMS can work only after it receives the necessary invoice details from these systems. After it receives an invoice, it checks the invoice and then validates it. If the invoice generated is valid, it adds a verification code and a QR code and returns the invoice to the generated machine or software. This enables the business owner to print the e-invoice in Tanzania and issue it to his customers. The upgraded EFDMS ensures every e-invoice issued is valid thereby making it easy for taxpayers to file their returns without hassles.

    Generate invoices in Tanzania using Fresa Application:

    Step 1 : Login to Fresa Application and select TRA Invoice module.
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    Fig 1
    Step 2 : In TRA Invoice Screen click the TRA Invoice List option.
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    Fig 2
    Step 3: IN TRA Invoice List screen , enter the required details like select the date range , select the voucher Type , if you want to submit the particular voucher only means enter the Voucher Number in Voucher number Column and click the Submit Button.
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    Fig 3
    Step 4 : Now in the screen , we can view the required details and we need to select the list of Vouchers that we are going to Submit it , then click the Submit button.
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    Fig 4
    Step 5 : Once we click the Submit button the Invoice will get automatically submitted and by clicking the response button we can view the details as like below screenshot.
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    Fig 5
    Step 6 : We can view the reports for the submitted invoice in TRA Invoice List screen , click that Report button as mentioned below.
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    Fig 6
    Step7 : Select the Standard Invoice – Jasper Tanzania Report.
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    Fig 7
    Step 8 : In the Report we can view the QR code details along with Receipt verification Code, Receipt Date & Time , Verify URL details.
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    Fig 8
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