A Dissertation Submitted in Partial Fulfillment of the Requirements for the Award of the Degree of Master of Business Administration in Corporate Management (MBA-CM) of Mzumbe University Dar es Salaam Campus.The researcher reports contain five chapters. Chapter one contain background information to the study and its constituents elements. Chapter two comprises of theoretical and empirical literature review. Chapter three is the research methodology, chapter four contain presentation and discussion of research findings, and lastly chapter five comprises of summary of findings, conclusion and policy implications. The main objective of this study was to examine the impact of Electronic Fiscal Device (EFD) on VAT Collection in Tanzania. The study undertook three specific objectives; to determine the influence of EFD on VAT collection by TRA in Tanzania, to examine the challenges hindering the applicability of EFD in VAT collection in Tanzania and to determine appropriate measures that need to be implemented to facilitate the efficiency of the use of EFD in VAT collection in Tanzania. The study applied stratified random sampling by picking different categories of businesses and types of EFDs in use. Quantitative and qualitative data were collected using structured questionnaires and interviews. Secondary data were obtained from TRA documents. The collected data were analyzed by use of Microsoft Excel Program. Data analysis was done using SPSS and Ms-excel, the questionnaire was set and prepared on the basis of closed-ended and open- cum-coded questions of the constructs. It was The Tanzania Revenue Authority is implementing the Electronic Fiscal Devices Regime as one of the initiatives under its Third Corporate Plan (2008/2009–2012/2013). The first phase of the Regime became operational from 1st July, 2010 covering all Value Added Tax (VAT) registered traders. The study findings has revealed that, based on the size of traders expected to comply with the use of EFD in the Second Phase, TRA took deliberate efforts to monitor the implementation of first phase and as a result, it was important to conduct an evaluation exercise in order to assess the success, obstacles encountered and challenges faced during the first phase. The study also has provided assessment of the effectiveness of the strategies deployed by TRA to implement the First Phase, this included the Taxpayer’s perceptions towards the introduction of the EFD. The study was unable to establish the magnitude of revenue generated by EFD Machines although we believe there is indeed a revenue gain through the use of EFD.