Tax compliance is key to economic transformation globally as the revenues collected are then used to finance service delivery and infrastructure development.
But sometimes, individuals and organizations alike fail to comply due to a cocktail of issues such as the absence of proper tools to support collections and ignorance.
To cure these ills, the government of Tanzania through the Tanzania Revenue Authority (TRA) has since introduced an online portal for filing tax returns and paying electronically.
The private sector is also playing its part. One of the solutions supporting Tax Compliance in Tanzania is Simplify by Simplitech Limited.
According to Caroline Clement, the Clients’ Engagement and Marketing Lead for Simplitech Limited, Simplify is an online invoicing software integrated into Tanzania Revenue Authority (TRA) Financial Data Management Systems that enables its users to issue receipts using their smartphones or any electronic devices with internet access. Its core service proposition includes Simplify VFD (Virtual Fiscal Device), Simplify USSD and Simplify API.
Simplify VFD (Virtual Fiscal Device) is a software solution integrated with TRA’s data management system, enabling users to generate virtual EFD receipts with ease while Simplify USSD is a short code service enabling EFD receipt generation without internet access for Vodacom, Tigo, and Airtel users. On the other hand, Simplify API offers a comprehensive and accessible solution for seamless integration between applications and third-party accounting systems or inventory management systems.
Caroline Clement further noted that the Virtual Fiscal Device (VFD) eases the burden and reduces compliance stress by digitizing the issuance of Electronic Fiscal Device (EFD) receipts by allowing taxpayers to log in, create, and issue EFD receipts anytime and anywhere without the need for hardware.
Even though the uptake of Simplify is very encouraging with hundreds of users, Clement highlighted low trust and limited capital and funding as the key challenges they face.
We interacted with Simplify on Day 31 of the 40 Days 40 FinTechs initiative for Tanzania. First implemented in Uganda, 40 Days 40 FinTechs is an annual FinTech Innovation initiative presented by HiPipo to recognize and celebrate individuals and organizations who are making significant strides in promoting financial inclusivity through the use of technology.
It is aimed at promoting innovation and collaboration among FinTechs in Africa. The initiative is designed to provide FinTechs and startups with mentorship, training, exposure, and networking opportunities to help them grow and scale their businesses.
“Platforms like 40 Days 40 FinTechs are very helpful. They offer multiple networking, exposure and awareness opportunities for start-ups and innovators. Not all FinTech start-ups and innovators can reach the world as this platform does. This platform gives players good visibility as people get to see what you are doing, what problem you are addressing and how you are addressing it. This then opens up opportunities for collaborations locally and globally,” Clement explained.
40 Days 40 FinTechs initiative Tanzania is part of HiPipo’s broader Include EveryOne Program that is generously supported by the Gates Foundation and implemented in partnership with Level One Project, ICTC Tanzania, Ideation Corner, Cyber PLC Academy, INFITX, Crosslake Technologies, NG Films, Founders Academy and Mojaloop Foundation.
The Include EveryOne program is a beacon of acceleration of FinTech Innovation, empowerment for Women in FinTech and a catalyst for investment and development in the ICT sector. Minus 40 Days 40 FinTechs, other initiatives under the Include EveryOne Program are the FinTech Landscape Exhibition, Women in FinTech Hackathon, Summit and Incubator, Digital Impact Awards Africa and the Digital and Financial Inclusion Summit.
HiPipo is recognized as a premier advocate of digital Innovation and financial inclusion champion, a fervent proponent of the #LevelOneProject. HiPipo has been at the forefront, actively promoting digital innovation, Instant, Inclusive Payment Systems (IIPS), and DFS across Africa. With a legacy of advising, mobilizing, and facilitating the adoption of inclusive financial services, HiPipo’s efforts have been nothing short of transformative! For almost two decades, HiPipo has successfully facilitated the inclusive adoption of these crucial services.