TRA VFD Compliance Guide

What is TRA VFD?

A Virtual Fiscal Device (VFD) is Tanzania Revenue Authority's electronic system for recording business transactions. Unlike older Electronic Fiscal Devices (EFDs), VFDs are software-based solutions that connect directly to TRA's servers in real-time.

Every sale you make is transmitted to TRA, and a unique verification code is generated for each receipt. Customers can verify receipts on TRA's website using this code.

Who Needs VFD?

According to TRA regulations, the following businesses must use VFD:

• All VAT-registered businesses
• Businesses with annual turnover exceeding TZS 100 million
• Importers and wholesalers
• Professional service providers
• Businesses in specific industries as mandated by TRA

VFD Requirements

To set up VFD, you need:

• TIN (Tax Identification Number) - Your business tax ID
• VRN (VAT Registration Number) - If VAT registered
• VFD Certificate - Obtained from TRA after registration
• Approved VFD Software - Like Tawala, which is TRA-certified

How Tawala Helps

Tawala is an officially certified VFD provider. When you use Tawala:

• ✅ Every invoice automatically generates a TRA-compliant VFD receipt
• ✅ Receipts are transmitted to TRA in real-time
• ✅ Unique verification codes are included on all receipts
• ✅ Full audit trail is maintained for TRA inspections
• ✅ VAT reports are generated automatically

Setting Up VFD in Tawala

Step 1: Get Your VFD Certificate

Visit your nearest TRA office or apply online at TRA's website. You'll receive a digital certificate file.

Step 2: Enter Details in Tawala

Go to Settings > TRA VFD and enter your TIN, VRN, and upload your certificate file.

Step 3: Test Connection

Click "Test Connection" to verify everything is working. Our support team can assist if needed.

Step 4: Start Issuing Receipts

Once connected, every invoice you create will automatically generate a VFD receipt.

Non-Compliance Penalties

Failure to use VFD or issuing non-compliant receipts can result in:

• Fines ranging from TZS 500,000 to TZS 10,000,000
• Business closure orders
• Criminal prosecution in severe cases
• Loss of business licenses

Don't risk it. Get compliant with Tawala today.