The main purpose of this study was to examine the challenges facing taxpayers in using Virtual Fiscal Devices (VFD) in Zanzibar: A Case of Urban West Region. The researcher has mainly employed quantitative research approach with appropriate method of analysis for this study. The sample size for this study consists of 130 respondents and survey questionnaire was used as data collection instrument. To achieve reliable result descriptive statistical techniques were used to analyses the collected data from relevant respondents. The study has revealed that more than 60 percent of the total respondents have agreed and strong agreed that, negative attitudes of traders and cost of virtual fiscal devices are the main challenges facing taxpayers in using virtual fiscal devices in Zanzibar. Therefore, the study concluded that it requires high setting a conducive environment where concerns of both parties are addressed. Thus, the study recommended that The government of Zanzibar through responsible organs should develop and deliver an education program to tax payers on weekly basis to reduce their negative perception and make it clear that VFDs is a way of simplifying tax assessment.