A Research Report Submitted to Mzumbe University – Mbeya Campus College in Partial Fulfillment of Requirement for Award of the Bachelor Degree in Accounting and Finance in Business sector (BAF- BS) of Mzumbe University.Various Tax administration have adopted EFD In their request to fight non tax compliance, EFD machine have brought positive changes in developing countries like Africa especially East Africa, Tanzania is among east African countries which use EFD machine in collecting Tax, Basing on discussion and various finding made by other researcher on impact of EFD machine on tax collection, a researcher come up with view of doing this research. The study aimed at assessing the effect of using EFD machines on improving tax collection. The study was conducted at TRA Kahama Tax regional office. Specifically the researcher aimed at determining the increase or decrease of tax collections since introduction of EFD. To determine challenges facing the use of EFDs machines in tax collection. To find out possible reasons for traders noncompliance of EFD provision. And to examine the Importance of the EFD to VAT traders. Case study approach was used during the research, Both primary and secondary method of Data collection were used in which primary data were obtained via interviews and questionnaire and the secondary data were obtained from documentary source of TRA such Journals, Books, and other related research work made by other researchers, Analysis of data was mainly done by using quantitative and qualitative data analysis. The findings of this research project will assist the Tanzania Revenue Authority on looking ways of improving the collections of Revenue using of EFD. Data were collected from50, Population of which 20, are TRA officers And 30, traders who are using EFD machine. The respondents were only the sample size taken of which18 is TRA officers and 26 are Traders who are using EFD. Based on the results from data analysis and findings of the research, one will safely conclude the following; First, Tanzania has witnessed significant changes in many aspects of its economy over the last five years because The findings have revealed that the EFD machines have led to an increase in the tax collections of TRA, increase in the performances by achieving targets. But like most developing countries, it has had to contend with the common problems that plague tax systems of developing countries.