The Electronic Fiscal Device (EFD) has been introduced to VAT registered traders under the "The Value Added Tax (Electronic Fiscal Device) Regulation, 2010" - Subsidiary Legislation, Government Notice No. 192 published on May 28, 2010, and enshrined in the Finance Act 2010 with the main aim of enhancing VAT compliance in Tanzania.TRAa??s new EFD system became effective on July 1, 2010 (Finance Act, 2010). The system aims at allowing the taxman to get correct sales information from businesspeople; reduce tax collection costs and helping businesspeople to comply with the Value Added Tax (VAT) regulations among others. This study assesses the challenges of EFD adoption among VAT registered traders in Tanzania, exploring Dar es salaam and Mwanza regions.

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