June 28, 2006



Securities and Exchange Commission
450 Fifth Street, N.W.
Washington, D.C.  20549

       Boston Financial Tax Credit Fund VIII, A Limited Partnership
       Annual Report on Form 10-KSB for the Year Ended March 31, 2006
       File Number 0-26522

Dear Sir/Madam:


Pursuant to the requirements of Section 15(d) of the Securities Exchange Act of
1934, filed herewith is one copy of subject report.

Very truly yours,



/s/Stephen Guilmette
Stephen Guilmette
Assistant Controller


TC810K



<PAGE>

                                                      UNITED STATES
                                        SECURITIES AND EXCHANGE COMMISSION
                                                Washington, D.C. 20549
                                                        FORM 10-KSB
(Mark One)

[ X ]     ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934

For the fiscal year ended                    March 31, 2006
                         --------------------------------------------------

                                                      OR

[   ]     TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934

For the transition period from                  to
                               --------------         ---------------------

                    Commission file number 0-26522
                                          -------

Boston Financial Tax Credit Fund VIII, A
 Limited Partnership (Exact name of registrant as specified in its charter)

                  Massachusetts                    04-3205879
--------------------------------------         -----------------------------
      (State or other jurisdiction of      I.R.S. Employer Identification No.)
       incorporation or organization)

   101 Arch Street, Boston, Massachusetts            02110-1106
---------------------------------------------     -----------------------------
  (Address of principal executive offices)             (Zip Code)

Registrant's telephone number, including area code    (617) 439-3911
                                                     --------------------

Securities registered pursuant to Section 12(b) of the Act:
                                                Name of each exchange on
          Title of each class                       which registered
          -------------------               -----------------------------
                 None                                   None

Securities registered pursuant to Section 12(g) of the Act:

                                      UNITS OF LIMITED PARTNERSHIP INTEREST
                                                (Title of Class)
                                                      200,000
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days.
                                                                     Yes X No __

Indicate by check mark if disclosure of delinquent filers pursuant to Item 405
of Regulation S-K (Subsection 229.405 of this chapter) is not contained herein,
and will not be contained, to the best of registrant's knowledge, in definitive
proxy or information statements incorporated by reference in Part III of this
Form 10-KSB or any amendment to this Form 10-KSB. [ X ]

State the aggregate sales price of partnership units held by non affiliates of
the registrant.

                                  $36,497,000 as of March 31, 2006


<PAGE>



DOCUMENTS  INCORPORATED  BY REFERENCE:  LIST THE FOLLOWING  DOCUMENTS IF
INCORPORATED BY REFERENCE AND THE PART OF THE FORM 10-KSB INTO WHICH THE
DOCUMENT IS INCORPORATED:  (1) ANY ANNUAL REPORT TO SECURITY HOLDERS:
(2) ANY PROXY OR INFORMATION STATEMENT: AND (3) ANY PROSPECTUS FILED PURSUANT
TO RULE 424(b) OR (c) UNDER THE SECURITIES ACT OF 1933.
<TABLE>
<CAPTION>

                                                                        Part of Report on
                                                                        Form 10-KSB into
                                                                        Which the Document
Documents incorporated by reference                                     is Incorporated
-----------------------------------                                     ---------------

<S>                                                                     <C>
Report on Form 8-K dated April 8, 1994                                  Part I, Item 1

Report on Form 8-K dated June 14, 1994                                  Part I, Item 1

Acquisition Reports                                                     Part I, Item 1

Prospectus - Sections Entitled:

     "Investment Objectives and Policies -
      Principal Investment Objectives"                                  Part I, Item 1

     "Investment Risks"                                                 Part I, Item 1

     "Estimated Use of Proceeds"                                        Part III, Item 12

     "Management Compensation and Fees"                                 Part III, Item 12

     "Profits and Losses for Tax Purposes, Tax
        Credits and Cash Distributions"                                 Part III, Item 12

</TABLE>






<PAGE>
<TABLE>
<CAPTION>


                                     BOSTON FINANCIAL TAX CREDIT FUND VIII, A LIMITED PARTNERSHIP

                                                     ANNUAL REPORT ON FORM 10-KSB
                                                   FOR THE YEAR ENDED MARCH 31, 2006


                                                               TABLE OF CONTENTS


                                                                           Page No.

PART I

     <S>          <C>                                                        <C>
     Item 1       Business                                                   K-3
     Item 2       Properties                                                 K-5
     Item 3       Legal Proceedings                                          K-8
     Item 4       Submission of Matters to a Vote of
                  Security Holders                                           K-9




PART II

     Item 5       Market for the Registrant's Units and

                  Related Security Holder Matters                            K-8
     Item 6       Management's Discussion and Analysis of
                  Financial Condition and Results of Operations              K-9
     Item 7       Financial Statements and Supplementary Data                K-12
     Item 8       Changes in and Disagreements with Accountants
                  on Accounting and Financial Disclosure                     K-12
     Item 8A      Controls and Procedures                                    K-13
     Item 8B      Other Information                                          K-13


PART III

     Item 9       Directors and Executive Officers
                  of the Registrant                                          K-13
     Item 10      Management Remuneration                                    K-14
     Item 11      Security Ownership of Certain Beneficial
                  Owners and Management                                      K-14
     Item 12      Certain Relationships and Related Transactions             K-15
     Item 13      Exhibits, Financial Statement Schedules and

                  Reports on Form 8-K                                        K-16
     Item 14.     Principal Accountant Fees and Services                     K-16

SIGNATURES                                                                   K-17
----------

CERTIFICATIONS                                                               K-18
--------------

</TABLE>

<PAGE>


                                                                          PART I


Item 1.  Business

Boston Financial Tax Credit Fund VIII, A Limited Partnership (the "Fund") is a
Massachusetts limited partnership formed on August 25, 1993 under the laws of
the Commonwealth of Massachusetts. The Fund's partnership agreement
("Partnership Agreement") authorizes the sale of up to 200,000 units of Limited
Partnership Interest ("Unit") at $1,000 per Unit in series. The first series
offered 50,000 Units. On July 29, 1994, the Fund held its final investor
closing. In total, the Fund raised $36,497,000 ("Gross Proceeds") through the
sale of 36,497 Units. Such amounts exclude a fractional unregistered Unit
previously acquired for $100 by the Initial Limited Partner. The offering of
Units terminated on March 29, 1995.

The Fund is engaged solely in the business of real estate investment.
Accordingly, a presentation of information about industry segments is not
applicable and would not be material to an understanding of the Fund's business
taken as a whole.

The Fund has invested as a limited partner in other limited partnerships ("Local
Limited Partnerships") which own and operate residential apartment complexes
("Properties"), some of which were expected to benefit from some form of
federal, state or local assistance programs and all of which qualify for
low-income housing tax credits ("Tax Credits") added to the Internal Revenue
Code (the "Code") by the Tax Reform Act of 1986. The investment objectives of
the Fund include the following: (i) to provide investors with annual tax credits
which they may use to reduce their federal income taxes; (ii) to provide limited
cash distributions from the operations of apartment complexes; and (iii) to
preserve and protect the Fund's capital. There cannot be any assurance that the
Fund will attain any or all of these investment objectives. A more detailed
discussion of these investment objectives, along with the risks in achieving
them is contained in the sections of the Prospectus entitled "Investment
Objectives and Policies - Principal Investment Objectives" and "Investment
Risks", which are herein incorporated by this reference.

Table A on the following page lists the properties originally acquired by the
Local Limited Partnerships in which the Fund had invested. Item 6 of this Report
contains other significant information with respect to such Local Limited
Partnerships. As required by applicable rules, the terms of the acquisition of
each Local Limited Partnership interest have been described in the Form 8-Ks and
a supplement to the Prospectus; such descriptions are incorporated herein by
this reference.


<PAGE>
<TABLE>
<CAPTION>


                                                                         TABLE A

                                                          SELECTED LOCAL LIMITED
                                                                PARTNERSHIP DATA


 Property owned by Local                                                                        Date
   Limited Partnerships                                                                       Interest
                                                      Location                                Acquired
---------------------------                      --------------------                        ------------

<S>                                             <c>                                          <C>
Green Wood Apartments                           Gallatin, TN                                 03/02/94

Webster Court Apartments                        Kent, WA                                     05/13/94

Springwood Apartments                           Tallahassee, FL                              12/15/94

Meadow Wood of Pella                            Pella, IA                                    06/03/94

Hemlock Ridge                                   Livingston Manor, NY                         04/29/94

Pike Place                                      Fort Smith, AR                               01/31/94

West End Place                                  Springdale, AR                               01/12/94

Oak Knoll Renaissance                           Gary, IN                                     11/01/94

Beaverdam Creek                                 Mechanicsville, VA                           11/16/94

Live Oaks Plantation                            West Palm Beach, FL                          06/28/94
</TABLE>

Although the Fund's investments in Local Limited Partnerships are not subject to
seasonal fluctuations, the Fund's equity in losses of Local Limited
Partnerships, to the extent it reflects the operations of individual Properties,
may vary from quarter to quarter based upon changes in occupancy and operating
expenses as a result of seasonal factors.

Each Local Limited Partnership has, as its general partners ("Local General
Partners"), one or more individuals or entities not affiliated with the Fund or
its General Partners. In accordance with the partnership agreements under which
such entities are organized ("Local Limited Partnership Agreements"), the Fund
depends on the Local General Partners for the management of each Local Limited
Partnership. As of March 31, 2006, the following Local Limited Partnerships have
a common Local General Partner or affiliated group of Local General Partners
accounting for the specified percentage of the total capital contributions in
Local Limited Partnerships: (i) Green Wood Apartments, A Limited Partnership and
Springwood Apartments, A Limited Partnership, representing 21.71%, have Flournoy
Development Company as Local General Partner; (ii) Pike Place, A Limited
Partnership and West End Place, A Limited Partnership, representing 12.90%, have
Lindsey Management Company as Local General Partner. The Local General Partners
of the remaining Local Limited Partnerships are identified in the Acquisition
Reports which are herein incorporated by reference.

The Properties owned by Local Limited Partnerships in which the Fund has
invested are, and will continue to be, subject to competition from existing and
future apartment complexes in the same areas. The success of the Fund depends on
many outside factors, most of which are beyond the control of the Fund and which
cannot be predicted at this time. Such factors include general economic and real
estate market conditions, both on a national basis and in those areas where the
Properties are located, the availability and cost of borrowed funds, real estate
tax rates, operating expenses, energy costs and government regulations. In
addition, other risks inherent in real estate investment may influence the
ultimate success of the Fund, including: (i) possible reduction in rental income
due to an inability to maintain high occupancy levels or adequate rental levels;
(ii) possible adverse changes in general economic conditions and adverse local
conditions, such as competitive overbuilding, a decrease in employment or
adverse changes in real estate laws, including building codes; and (iii) the
possible future adoption of rent control legislation which would not permit
increased costs to be passed on to the tenants in the form of rent increases, or
which suppress the ability of the Local Limited Partnerships to generate
operating cash flow. Since most of the Properties benefit from some form of
governmental assistance, the Fund is subject to the risks inherent in that area
including decreased subsidies, difficulties in finding suitable tenants and
obtaining permission for rent increases. In addition, any Tax Credits allocated
to investors with respect to a Property are subject to recapture to the extent
that the Property or any portion thereof ceases to qualify for the Tax Credits.
Other future changes in federal and state income tax laws affecting real estate
ownership or limited partnerships could have a material and adverse affect on
the business of the Fund.

The Fund is managed by Arch Street VIII Limited Partnership, the sole General
Partner of the Fund. The Fund, which does not have any employees, reimburses MMA
Financial, Inc. (MMA), an affiliate of the General Partner, for certain expenses
and overhead costs. A complete discussion of the management of the Fund is set
forth in Item 9 of this Report.

Item 2.  Properties

The Fund owns limited partnership interests in ten Local Limited Partnerships
which own and operate Properties, some of which benefit from some form of
federal, state, or local assistance programs and all of which qualify for the
Tax Credits added to the Code by the Tax Reform Act of 1986. The Fund's
ownership interest in the Local Limited Partnerships is 99%, with the exception
of Springwood which is 79.20%, Hemlock Ridge which is 77% and Pike Place and
West End Place which are 90%.

Each of the Local Limited Partnerships have received an allocation of Tax
Credits from the relevant state tax credit agency. In general, the Tax Credits
run for ten years from the date the Property is placed in service. The required
holding period (the "Compliance Period") of the Properties is fifteen years.
During these fifteen years, the Properties must satisfy rent restrictions,
tenant income limitations and other requirements, as promulgated by the Code, in
order to maintain eligibility for the Tax Credits at all times during the
Compliance Period. Once a Local Limited Partnership has become eligible for the
Tax Credits, it may lose such eligibility and suffer an event of recapture if
its Property fails to remain in compliance with the requirements. To date, with
the exception of Live Oaks Plantation, none of the Local Limited Partnerships
have suffered an event of recapture of Tax Credits.

In addition, some of the Local Limited Partnerships have obtained one or a
combination of different types of loans such as: i) below market rate interest
loans; ii) loans provided by a redevelopment agency of the town or city in which
the property is located at favorable terms; or iii) loans that have repayment
terms that are based on a percentage of cash flow.

The schedule on the following pages provides certain key information on the
Local Limited Partnership interests acquired by the Fund.


<PAGE>



<TABLE>
<CAPTION>


                                               Capital Contributions         Mtge. loans                          Occupancy
Local Limited Partnership     Number    Total Committed   Paid Through       payable at                              at
Property Name                  of        at March 31,        March 31,       December 31,         Type of         March 31,
Property Location           Apt. Units      2006               2006              2005             Subsidy*         2006
---------------------    -------------- ----------------   --------------  -----------------     -----------    ---------------


Green Wood Apartments,
   a Limited Partnership
Green Wood Apartment
<S>                        <C>           <C>                 <C>               <C>                                 <C>
Gallatin, TN               164           $3,825,916          $3,825,916        $4,710,678            None          95%

Webster Court Apartments
   a Limited Partnership
Webster Court Apartments
Kent, WA                    92            2,318,078           2,318,078         2,604,382            None          95%

Springwood Apartments
   a Limited Partnership (1)
Springwood Apartments
Tallahassee, FL            113            2,499,202           2,499,202         3,529,532            None          97%

Meadow Wood Associates
   of Pella, a Limited Partnership
Meadow Wood of Pella
Pella, IA                   30              893,808             893,808          923,781           Section 8       80%

RMH Associates, a Limited
   Partnership (1)
Hemlock Ridge
Livingston Manor, NY       100            1,697,298           1,697,298         1,505,443          Section 8       92%

Pike Place, a Limited
   Partnership (1)
Pike Place
Fort Smith, AR             144            1,915,328           1,915,328         2,908,374            None          100%

</TABLE>

<PAGE>


<TABLE>
<CAPTION>


                                               Capital Contributions         Mtge. loans                          Occupancy
Local Limited Partnership     Number    Total Committed   Paid Through       payable at                              at
Property Name                  of        at March 31,        March 31,       December 31,         Type of         March 31,
Property Location           Apt. Units      2006               2006              2005             Subsidy*         2006
---------------------    -------------- ----------------   --------------  -----------------     -----------    ---------------

West End Place, a Limited
   Partnership (1)
West End Place
<S>                          <C>          <C>                 <C>               <C>                                      <C>
Springdale, AR               120          1,843,010           1,843,010         2,566,365         None                   99%

Oak Knoll Renaissance, a
   Limited Partnership
Oak Knoll Renaissance
Gary, IN                     256          4,922,412           4,922,412         4,411,579       Section 8                98%

Beaverdam Creek Associates,
   a Limited Partnership (2)
Beaverdam Creek
Mechanicsville, VA           120          3,629,140           3,629,140         4,235,550         None                   94%

Schickedanz Brothers Palm
   Beach Limited
Live Oaks Plantation
West Palm Beach, FL          218          5,587,953           5,587,953         5,859,870         None                   95%
                           ------      -------------        ------------       -------------
                           1,357        $29,132,145        $29,132,145        $33,255,554
                           ======       ===========        =============      ==============

(1)          Boston  Financial  Tax Credits  Fund VIII has a 79.20%  interest in
             Springwood  Apartments,  L.P.,  a 77% interest in RMH
             Associates,  L.P.,  and a 90%  interest in Pike  Place,  L.P.
             and West End Place,  L.P.  The  mortgage  payable  balances
             represent 100% of the outstanding balances.

(2)          The amount paid includes funds advanced  under a promissory  note
             agreement with Boston  Financial Tax Credit Fund VIII, a
             Limited Partnership.

*Section     8 This subsidy, which is authorized under Section 8 of Title II of
             the Housing and Community Development Act of 1974, allows qualified
             low-income tenants to pay 30% of their monthly income as rent with
             the balance paid by the federal government.

</TABLE>


<PAGE>


The Fund does not guarantee any of the mortgages or other debt of the Local
Limited Partnerships.

Duration of leases for occupancy in the Properties described above is generally
six to twelve months. The Managing General Partner believes the Properties
described herein are adequately covered by insurance.

Additional information required under this Item, as it pertains to the Fund, is
contained in Items 1, 6 and 7 of this Report.

Item 3.  Legal Proceedings

On August 24, 2004, the Fund, Boston Financial Qualified Housing Limited
Partnership, Boston Financial Qualified Housing Tax Credits L.P. II, Boston
Financial Qualified Housing Tax Credits L.P. III, Boston Financial Qualified
Housing Tax Credits L.P. IV, Boston Financial Qualified Housing Tax Credits L.P.
V, Boston Financial Tax Credit Fund Plus, A Limited Partnership, and Boston
Financial Tax Credit Fund VII, A Limited Partnership (collectively, the
"Partnerships"), and their general partners commenced litigation against Everest
Housing Investors 2, LLC ("Everest 2") and several other Everest-related
entities (collectively, the "Everest Entities") in Massachusetts state court,
seeking a declaratory judgment that certain materials the Everest Entities
sought to inspect are not "books and records" of the Partnerships and that the
Everest Entities are in any case not entitled to inspect said information under
applicable partnership agreements, partnership law or otherwise. On October 7,
2004, the Everest Entities filed an answer and counterclaim against the
Partnerships and their purported general partners, claiming that they breached
applicable partnership agreements, partnership law and their fiduciary duties to
the Everest Entities by failing to make the purported "books and records"
available. On January 12, 2005, the Partnerships moved to amend their complaint
to, among other things, add a claim based on Everest 2's breach of a November
24, 2003 letter agreement which compelled Everest 2 to keep confidential certain
information contemporaneously disseminated by four of the Partnerships to
Everest 2. The Court granted this Motion. Discovery in the matter is ongoing.


The Partnerships maintain that the Everest Entities are not entitled to review
the materials requested and/or use the materials in secondary market
transactions because, among other things: (i) they are not "books and records"
of the Partnerships; (ii) the Everest Entities do not seek to review them for a
proper purpose; and (iii) selective disclosure of the information to the Everest
Entities would give them an unfair informational advantage in secondary market
transactions and may violate federal and/or state securities laws. The
Partnerships have not formed an opinion that an unfavorable outcome is either
probable or remote, and their counsel refrains from expressing an opinion as to
the likely outcome of the case or the range of any loss.


Except as noted above, the Fund is not a party to any pending legal or
administrate proceeding, and to the best of its knowledge, no legal or
administrative proceeding is threatened or contemplated against it.

Item 4.  Submission of Matters to a Vote of Security Holders
------------------------------------------------------------

None.
                                     PART II

Item 5. Market for the  Registrant's  Units and Related Security Holder
Matters

There is no public market for the Units, and it is not expected that a public
market will develop. If a Limited Partner desires to sell Units, the buyer of
those Units will be required to comply with the minimum purchase and retention
requirements and investor suitability standards imposed by applicable federal or
state securities laws and the minimum purchase and retention requirements
imposed by the Fund. The price to be paid for the Units, as well as the
commissions to be received by any participating broker-dealers, will be subject
to negotiation by the Limited Partner seeking to sell his Units. Units will not
be redeemed or repurchased by the Fund.

The Partnership Agreement does not impose on the Fund or its General Partner any
obligation to obtain periodic appraisals of assets or to provide Limited
Partners with any estimates of the current value of Units.

As of March 31, 2006, there were 1,173 record holders of Units of the Fund.

Cash distributions, when made, are paid annually. For the years ended March 31,
2006 and 2005, no cash distributions were made.

Item 6.  Management's  Discussion  and Analysis of Financial  Condition
and Results of Operations

Certain matters discussed herein constitute forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995. The Fund
intends such forward-looking statements to be covered by the safe harbor
provisions for forward-looking statements and are including this statement for
purposes of complying with these safe harbor provisions. Although the Fund
believes the forward-looking statements are based on reasonable assumptions, the
Fund can give no assurance that their expectations will be attained. Actual
results and timing of certain events could differ materially from those
projected in or contemplated by the forward-looking statements due to a number
of factors, including, without limitation, general economic and real estate
conditions and interest rates.

Executive Level Overview


The Fund is a Massachusetts  limited partnership  organized to invest in
Local Limited  Partnerships  which own and operate  apartment  complexes
which are  eligible  for low  income  housing  tax  credits  that may be
applied  against the federal  income tax  liability of an investor.  The
Fund's  objectives are to: (i) provide investors with annual tax credits
which they may use to reduce their federal  income tax  liability;  (ii)
provide  limited cash  distributions  from the  operations  of apartment
complexes;  and (iii)  preserve  and  protect the Fund's  capital.  Arch
Street VIII Limited  Partnership  ("Arch Street L.P."),  a Massachusetts
limited   partnership   consisting   of  Arch  Street   VIII,   Inc.,  a
Massachusetts  corporation  ("Arch  Street,  Inc.") as the sole  general
partner  and  MMA as the  sole  limited  partner,  is the  sole  General
Partner  of the  Fund.  Arch  Street  L.P.  and Arch  Street,  Inc.  are
affiliates of MMA.  The fiscal year of the Fund ends on March 31.

The Fund's investment portfolio consists of limited partnership interests in ten
Local Limited Partnerships, each of which owns and operates a multi-family
apartment complex and each of which has generated Tax Credits. Since inception,
the Fund has generated Tax Credits of approximately $1,431 per Limited Partner
Unit. The aggregate amount of Tax Credits generated by the Fund was consistent
with the objective specified in the Fund's prospectus.

Properties that receive low income housing Tax Credits must remain in compliance
with rent restriction and set-aside requirements for at least 15 calendar years
from the date the property is placed in service (the "Compliance Period").
Failure to do so would result in the recapture of a portion of the property's
Tax Credits. Between 2008 and continuing through 2009, the Compliance Period of
the ten Properties in which the Fund has an interest will expire. It is unlikely
that the General Partner will be able to dispose of the Fund's Local Limited
Partnership interests concurrently with the expiration of each Property's
Compliance Period. The Fund shall dissolve and its affairs shall be wound up
upon the disposition of the final Local Limited Partnership interest and other
assets of the Fund. Investors will continue to be Limited Partners, receiving
K-1s and quarterly and annual reports, until the Fund is dissolved. The General
Partner has negotiated an agreement that will ultimately allow the Funds to
dispose of its interest in one Local Limited Partnership.


Critical Accounting Policies

The Fund's accounting polices include those that relate to its recognition of
investments in Local Limited Partnerships using the equity method of accounting.
The Fund's policy is as follows:


The Local Limited Partnerships in which the Fund invests are Variable Interest
Entities ("VIE"s). The Fund is involved with the VIEs as a non-controlling
limited partner equity holder. Because the Fund is not the primary beneficiary
of these VIEs, it accounts for its investments in the Local Limited Partnerships
using the equity method of accounting. As a result of its involvement with the
VIEs, the Fund exposure to economic and financial statement losses is limited to
its investments in the VIEs ($6,987,428 at March 31, 2006). The Fund may be
subject to additional losses to the extent of any financial support that the
Fund voluntarily provides in the future. Under the equity method, a Local
Limited Partnership investment will not be carried below zero. To the extent
that equity in losses are incurred when the Fund's carrying value of the
respective Local Limited Partnership has been reduced to a zero balance, the
losses will be suspended and offset against future income. Income from Local
Limited Partnerships, where cumulative equity in losses plus cumulative
distributions have exceeded the total investment in Local Limited Partnerships,
will not be recorded until all of the related unrecorded losses have been
offset. To the extent that a Local Limited Partnership with a carrying value of
zero distributes cash to the Fund, that distribution is recorded as income on
the books of the Fund and is included in "other revenue" in the accompanying
financial statements.

The Fund has implemented policies and practices for assessing
other-than-temporary declines in values of its investments in Local Limited
Partnerships. Periodically, the carrying values of the investments are compared
to their respective fair values. If an other-than-temporary decline in carrying
value exists, a provision to reduce the asset to fair value, as calculated based
primarily on remaining tax benefits, will be recorded in the Fund's financial
statements. During the year ended March 31, 2006, the Fund concluded that one of
the Local Limited Partnerships had experienced an other-than-temporary decline
in its carrying value and impairment losses were recorded for Meadow Wood
Associates of Pella, a Limited Partnership for approximately $12,000. During the
year ended March 31, 2005, the Fund concluded that one of the Local Limited
Partnerships had experienced an other-than-temporary decline in its carrying
value and impairment losses were recorded for Meadow Wood Associates of Pella, a
Limited Partnership for approximately $96,000. Generally, the carrying values of
most Local Limited Partnerships will decline through losses and distributions in
amounts sufficient to prevent other-than-temporary impairments. However, the
Fund may record similar impairment losses in the future if the expiration of tax
credits outpaces losses and distributions from any of the Local Limited
Partnerships.


Liquidity and Capital Resources


At March 31, 2006, the Fund had cash and cash equivalents of $346,666, as
compared to $332,386 at March 31, 2005. The increase is primarily attributable
to cash distributions received from Local Limited Partnerships. This increase is
partially offset by cash used for operations and purchases of investment
securities. Cash used for operations includes $775,000 paid to the General
Partner for accrued asset management fees.


The General Partner initially designated 5% of the Gross Proceeds as Reserves,
as defined in the Partnership Agreement. The Reserves were established to be
used for working capital of the Fund and contingencies related to the ownership
of Local Limited Partnership interests. The General Partner may increase or
decrease such Reserves from time to time, as it deems appropriate. At March 31,
2006, $495,587 of cash, cash equivalents and investment securities has been
designated as Reserves.

To date, professional fees relating to various Property issues totaling
approximately $62,000 have been paid from Reserves. In the event a Local Limited
Partnership encounters operating difficulties requiring additional funds, the
Fund's management might deem it in its best interest to voluntarily provide such
funds in order to protect its investment. As of March 31, 2006, the Fund has
advanced approximately $1,248,000 to Local Limited Partnerships to fund
operating deficits.

The General Partner believes that the investment income earned on the Reserves,
along with cash distributions received from Local Limited Partnerships, to the
extent available, will be sufficient to fund the Fund's ongoing operations.
Reserves may be used to fund operating deficits, if the General Partner deems
funding appropriate. To date, the Fund has used approximately $19,000 of
Reserves to fund operations. If Reserves are not adequate to cover the Fund's
operations, the Fund will seek other financing sources including, but not
limited to, the deferral of Asset Management Fees paid to an affiliate of the
General Partner or working with Local Limited Partnerships to increase cash
distributions.

Since the Fund invests as a limited partner, the Fund has no contractual duty to
provide additional funds to Local Limited Partnerships beyond its specified
investment. Thus, as of March 31, 2006, the Fund had no contractual or other
obligation to any Local Limited Partnership which had not been paid or provided
for.

Cash Distributions


No cash distributions were made to Limited Partners during the two years ended
March 31, 2006. It is expected that cash available for distribution, if any,
will not be significant in fiscal year 2007. Based on results of 2005 Property
operations, the Local Limited Partnerships are not expected to distribute
significant amounts of cash to the Funds because such amounts will be needed to
fund Property operating costs. In addition, some of the properties benefit from
some type of federal or state subsidy and, as a consequence, are subject to
restrictions on cash distributions.


Results of Operations


For the year ended March 31, 2006, the Fund's operations resulted in a net loss
of $1,181,642, as compared to $1,794,522 for the year ended March 31, 2005. The
decrease in net loss is primarily attributable to a decrease in equity in losses
of Local Limited Partnerships, a decrease in provision for valuation allowance
on investments in Local Limited Partnerships and a decrease in provision for
valuation allowance on advances to Local Limited Partnerships partially offset
by an increase in general and administrative expenses. The decrease in equity in
losses of Local Limited Partnerships is primarily due to an increase in
unrecognized losses by the Fund of Local Limited Partnerships with carrying
values of zero. The decrease in provision for valuation allowance on investments
in Local Limited Partnerships is due to the fund recording valuation allowance
for is investments in certain Local Limited Partnerships during the year ended
March 31, 2005. The decrease in provision for valuation of advances to Local
Limited Partnership is the result of a decrease in advances made to the Local
Limited Partnerships during the current year. The increase in general and
administrative expenses is due to increased expenses associated with auditing
the Fund's financial statements partially offset by a decrease in charges due to
an affiliate of the Managing General for operational and administrative expense
necessary for operations of the Fund


Low-Income Housing Tax Credits

The 2005 and 2004 tax credits were $52 and $134 per Unit, respectively. The Tax
Credits per Limited Partner stabilized in 1997 at approximately $142 per Unit,
as Properties reached completion and became fully leased. Since the Tax Credits
had stabilized, the annual amount allocated to investors remained the same for
about the first seven years. In years eight through ten, the credits are
decreasing as Properties reach the end of the ten year credit period. However,
because the Compliance Periods extend significantly beyond the Tax Credit
periods, the Fund is expected to retain most of its interests in the Local
Limited Partnerships for the foreseeable future.

Property Discussions


A few Properties in which the Fund has an interest have stabilized operations
and operate above break-even. Several Properties generate cash flow deficits
that the Local General Partners of those Properties fund through project expense
loans, subordinated loans or operating escrows. However, a few Properties have
had persistent operating difficulties that could either: i) have an adverse
impact on the Fund's liquidity; ii) result in their foreclosure; or iii) result
in the General Partner deeming it appropriate for the Fund to dispose of its
interest in the Local Limited Partnership prior to the expiration of the
Compliance Period. Also, the General Partner, in the normal course of the Fund's
business, may arrange for the future disposition of its interest in certain
Local Limited Partnerships. The following Property discussions focus only on
such Properties.


As previously reported, the Local General Partner of Live Oaks Plantation,
located in West Palm Beach, Florida, indicated a desire to transfer its interest
in the Local Limited Partnership to a replacement Local General Partner.
Accordingly, the General Partner began working with the Local General Partner to
identify an acceptable replacement. Negotiations to replace the Local General
Partner were then delayed due to an audit by the Internal Revenue Service
("IRS"). The audit focused on the tax treatment of certain items, such as land
improvements, impact fees, utility fees and developer fees. In April 2002, the
Florida office of the IRS issued their report indicating an eligible basis
reduction of approximately $1,000,000, which would reduce the amount of Tax
Credits and losses generated by the Property. The Local General Partner filed an
appeal of the report to the Washington D.C. office of the IRS. The appeal was
successful, and during April 2004 a settlement was reached whereby the eligible
basis was reduced by approximately $93,000. Subsequent to reaching a settlement
with the IRS, negotiations to replace the Local General Partner resumed.
Effective June 28, 2004, an affiliate of the General Partner replaced the Local
General Partner. In June 2005, the Local General Partner interest was
transferred from the affiliate of the General Partner to a replacement Local
General Partner. While occupancy and working capital levels at the Property have
consistently remained adequate, the Property generated significant operating
deficits in 2001 and 2002. The Fund funded slightly more than $1,000,000 of
deficits from Fund Reserves. The General Partner anticipates that cash from
operations will continue to fund the monthly debt service. Occupancy at the
Property averaged 90% for the three months ended December 31, 2005, while debt
service coverage and working capital remained above appropriate levels during
the same period.


As previously reported, turnover at Green Wood Apartments, located in Gallatin,
Tennessee, as a result of few employment opportunities in the immediate area,
continues to cause a decline in Property operations. Rental concessions, in an
effort to alleviate the turnover issue, along with higher utility and
administrative expenses, continue to hinder the Property's ability to operate at
above breakeven. Despite an overall improvement in occupancy levels since 2004;
(occupancy was 99% as of December 31, 2005) debt service coverage remained below
an appropriate level as of December 31, 2005. The Local General Partner
continues to fund the operating deficits, enabling the Property to remain
current on its loan obligations. The General Partner will continue to closely
monitor Property operations. The Managing General Partner and Local General
Partner have reached an agreement that may result in a 2006 sale of this
Property. Under the current terms, a sale would result in net proceeds to the
Fund of approximately $830,000 or $23 per Unit and taxable income of
approximately $500,000 or $14 per Unit.


As previously reported, Meadow Wood of Pella, located in Pella, Iowa, had
experienced operating deficits due to reduced revenues resulting from low
occupancy and high expenses. However, consistently acceptable levels of
occupancy over the nine months ended December 31, 2005 have alleviated revenue
issues and caused the return to above breakeven status of this Property as of
December 31, 2005. The Local General Partner has fulfilled its working capital
obligation and will no longer fund operating deficits, when applicable. A recent
modification to the Property's HOME loan resulting in a reduction to the
required annual debt service payment beginning in 2006 is expected to lead to an
improvement in operations. The Property remains current on its debt service. The
General Partner will continue to closely monitor Property operations.

In 2004 the Local General Partner of Beaverdam Creek located in Mechanicsville,
Virginia, requested approval for a refinancing on the Property's first mortgage.
As part of the agreement to provide the General Partner's approval of the
refinancing, a put agreement was entered into whereby the Fund has the right to
transfer its interest in the Local Limited Partnership for a nominal price at
any time after December 31, 2009, the end of the Property's Compliance Period.
As a result of the refinancing, which closed on May 4, 2005, the Fund received
Sale or Refinancing Proceeds, as defined in the Local Limited Partnership
Agreement, of $890,727. The General Partner, in accordance with and as permitted
by the Partnership Agreement, retained the entire amount of net proceeds in
Reserves.


Inflation and Other Economic Factors

Inflation had no material impact on the operations or financial condition of the
Fund for the years ended March 31, 2006 and 2005.

Since most Properties benefit from some form of governmental assistance, the
Fund is subject to the risks inherent in that area including decreased
subsidies, difficulties in finding suitable tenants and obtaining permission for
rent increases. In addition, any Tax Credits allocated to investors with respect
to a Property are subject to recapture to the extent that the Property or any
portion thereof ceases to qualify for the Tax Credits.

Certain Properties in which the Fund has invested are located in areas suffering
from poor economic conditions. Such conditions could have an adverse effect on
the rent or occupancy levels at such properties. Nevertheless, the General
Partner believes that the generally high demand for below market rate housing
will tend to negate such factors. However, no assurance can be given in this
regard.

Item 7.  Financial Statements and Supplementary Data Amount
Information required under this Item is submitted as a separate section of this
Report. See Index on page F-1 hereof.

Item 8. Changes in and  Disagreements  with  Accountants  on Accounting
and Financial Disclosure


None.



Item 8A.  Controls and Procedures

Based on the Fund's evaluation within 120 days prior to filing this Form 10-KSB,
the Fund's Principal Executive Officer has concluded that the Fund's disclosure
controls and procedures are effective to ensure that information required to be
disclosed in the reports that the Fund files or submits under the Securities
Exchange Act of 1934 is recorded, processed, summarized and reported within the
time periods specified in the Securities and Exchange Commission's rules and
forms.

There have been no significant changes in the Fund's internal controls or in
other factors that could significantly affect those controls subsequent to the
date of their evaluation.

Item 8B.  Other Information

No reports on Form 8-K were filed during the fourth quarter of the year ended
March 31, 2006.

                                    PART III

Item 9.  Directors and Executive Officers of the Registrant

The General Partner of the Fund is Arch Street VIII Limited Partnership, a
Massachusetts limited partnership (the "General Partner"), an affiliate of MMA.
The General Partner was formed in August 1993. The Investment Committee of the
General Partner approves all investments. The names and positions of the
principal officers and directors of the General Partner are set forth below.

Name     Position

Jenny Netzer                                Executive Vice President
Michael H. Gladstone                        Principal, Member

The General Partner provides day-to-day management of the Fund. Compensation is
discussed in Item 10 of this report. Such day-to-day management does not include
the management of the properties.

The business experience of each of the persons listed above is described below.
There is no family relationship between any of the persons listed in this
section.

Jenny Netzer, age 50, Executive Vice President - Ms. Netzer joined MMA as a
result of the Boston Financial and subsequent Lend Lease HCI acquisitions,
starting with Boston Financial in 1987 and leading Boston Financial's new
business initiatives and managing the firm's Asset Management division. Prior to
joining Boston Financial, Ms. Netzer served as Deputy Budget Director for the
Commonwealth of Massachusetts where she was responsible for the Commonwealth's
health care and public pension program's budgets. Ms. Netzer also served as
Assistant Controller at Yale University, as a former member of Watertown Zoning
Board of Appeals, as the Officer of Affordable Housing Tax Credit Coalition and
is a frequent speaker on affordable housing and tax credit industry issues. Ms.
Netzer is a graduate of Harvard University (BA) and Harvard's Kennedy School of
Government (MPP).

Michael H. Gladstone, age 49, Principal, Member - Mr. Gladstone is responsible
for capital transactions work in the Asset Management group of MMA. He joined
MMA as a result of the Boston Financial and Lend Lease HCI acquisitions,
starting with Boston Financial in 1985 as the firm's General Counsel. Prior to
joining Boston Financial, Mr. Gladstone was associated with the law firm of
Herrick & Smith and served on the advisory board of the Housing and Development
Reporter. Mr. Gladstone has lectured at Harvard University on affordable housing
matters and is a member of the National Realty Committee, Cornell Real Estate
Council, National Association of Real Estate Investment Managers and
Massachusetts Bar. Mr. Gladstone is a graduate of Emory University (BA) and
Cornell University (J.D. & MBA).

The Fund is organized as a limited partnership solely for the purpose of real
estate investment and does not have any employees. Therefore the Fund has not
adopted a Code of Ethics.

The Fund is structured as a limited partnership that was formed principally for
real estate investment and is not a "listed" issuer as defined by Rule 10A-3 of
the Securities Exchange Act of 1934. Accordingly, neither an audit committee nor
a financial expert to serve on such a committee has been established by the
Fund.

Item 10.  Management Remuneration

Neither the partners of Arch Street VIII Limited Partnership nor any other
individual with significant involvement in the business of the Fund receives any
current or proposed remuneration from the Fund.

Item 11.  Security Ownership of Certain Beneficial Owners and Management

As of March 31, 2006, the following entities are the only entities known to the
Fund to be the beneficial owners of more than 5% of the Units outstanding:
<TABLE>
<CAPTION>


      Title of                          Name and Address of                    Beneficially
        Class                            Beneficial Owner                          Owned           Percent of Class
   ---------------              -------------------------------------         ---------------      ----------------

<S>                                                                           <C>                         <C>
   Limited                       Oldham Institutional Tax Credits LLC         2,476 Units                 6.78%
   Partner                       101 Arch Street
                                 Boston, MA

   Limited                       Oldham Institutional Tax Credits LLC         5,220 Units                14.30%
   Partner                       VI LLC
                                 101 Arch Street
                                 Boston, MA

   Limited                      Liberty Corporation                           2,079 Units                 5.70%
   Partner                      PO Box 789
                                Greenville, SC

   Limited                      Everest Housing Investors 2, LLC              2,458 Units                6.73%
   Partner                      155 North Lake Avenue
                                   Suite 1000
                                Pasadena, CA  91101


</TABLE>

Oldham Institutional Tax Credits LLC and Oldham Institutional Tax Credits VI LLC
are affiliates of Arch Street VIII Limited Partnership, the General Partner.

The equity securities registered by the Fund under Section 12(g) of the Act of
1934 consist of 200,000 Units, 36,497 of which have been sold to the public.
Holders of Units are permitted to vote on matters affecting the Fund only in
certain unusual circumstances and do not generally have the right to vote on the
operation or management of the Fund.

Arch Street VIII, Inc. owns a fractional (unregistered) Unit not included in the
 Units sold to the public.


Except as described in the preceding paragraphs, neither Arch Street VIII, Inc.,
Arch Street VIII Limited Partnership, MMA, nor any of their executive officers,
directors, partners or affiliates is the beneficial owner of any Units. None of
the foregoing persons possesses a right to acquire beneficial ownership of
Units.


The Fund does not know of any existing arrangement that might at a later date
result in a change in control of the Fund.



Item 12.  Certain Relationships and Related Transactions

The Fund is required to pay certain fees to and reimburse certain expenses of
the General Partner or its affiliates (including MMA) in connection with the
organization of the Fund and the offering of Units. The Fund is also required to
pay certain fees to and reimburse certain expenses of the General Partner or its
affiliates (including MMA) in connection with the administration of the Fund and
its acquisition and disposition of investments in Local Limited Partnerships. In
addition, the General Partner is entitled to certain Fund distributions under
the terms of the Partnership Agreement. Also, an affiliate of the General
Partner will receive up to $10,000 from the sale or refinancing proceeds of each
Local Limited Partnership, if it is still a limited partner at the time of such
transaction. All such fees, expenses and distributions paid in the years ended
March 31, 2006 and 2005 are described below and in the sections of the
Prospectus entitled "Estimated Use of Proceeds", "Management Compensation and
Fees" and "Profits and Losses for Tax Purposes, Tax Credits and Cash
Distributions". Such sections are incorporated herein by reference.

The Fund is permitted to enter into transactions involving affiliates of the
General Partner, subject to certain limitations established in the Partnership
Agreement.

Information regarding the Fees paid and expense reimbursements made in the two
years ended March 31, 2006 is as follows:

Organizational Fees and Expenses and Selling Expenses

In accordance with the Partnership Agreement, the Fund was required to pay
certain fees to and reimburse expenses of the General Partner and others in
connection with the organization of the Fund and the offering of its Limited
Partnership Units. Selling commissions, fees and accountable expenses related to
the sale of the Units totaling $4,664,369 have been charged directly to Limited
Partners' equity. In connection therewith, $2,828,918 of selling expenses and
$1,835,451 of offering expenses incurred on behalf of the Fund have been paid to
an affiliate of the General Partner. The Fund was also required to pay a
non-accountable expense allowance for marketing expense equal to a maximum of 1%
of Gross Proceeds. The Fund has capitalized an additional $50,000 which was
reimbursed to an affiliate of the General Partner. Total organization and
offering expenses exclusive of selling commissions and underwriting advisory
fees did not exceed 5.5% of the Gross Proceeds and organizational and offering
expenses, inclusive of selling commissions and underwriting advisory fees, did
not exceed 15.0% of the Gross Proceeds. There were no organizational fees and
expenses paid for the two years ended March 31, 2006.

Acquisition Fees and Expenses

In accordance with the Partnership Agreement, the Fund was required to pay
acquisition fees to and reimburse acquisition expenses of the General Partner or
its affiliates for selecting, evaluating, structuring, negotiating and closing
the Fund's investments in Local Limited Partnerships. Acquisition fees totaled
6% of the Gross Proceeds.


Acquisition expenses, which include such expenses as legal fees and expenses,
travel and communications expenses, costs of appraisals, accounting fees and
expenses, were expected to total 1.5% of the Gross Proceeds. Acquisition fees
totaling $2,189,820 for the closing of the Fund's Local Limited Partnership
Investments were paid to an affiliate of the General Partner. Acquisition
expenses totaling $335,196 were reimbursed to an affiliate of the General
Partner. There were no acquisition fees and expenses paid for the two years
ended March 31, 2006.


Asset Management Fees

In accordance with the Partnership Agreement, an affiliate of the General
Partner currently receives 0.50% (annually adjusted by the CPI factor) of Gross
Proceeds annually as an Asset Management Fee for administering the affairs of
the Fund. Asset Management Fees incurred in the years ended March 31, 2006 and
2005 are as follows:
<TABLE>
<CAPTION>

                                                                                   2006                  2005
                                                                             --------------        -----------------

<S>                                                                          <C>                   <C>
Asset management fees                                                        $      238,505        $        233,865


</TABLE>

Salaries and Benefits Expense Reimbursement

An affiliate of the General Partner is reimbursed for the cost of certain
salaries and benefits expenses which are incurred by an affiliate of the General
Partner on behalf of the Fund. The reimbursements are based upon the size and
complexity of the Fund's operations. Reimbursements paid or payable in the years
ended March 31, 2005 and 2004 are as follows:
<TABLE>
<CAPTION>

                                                                                   2006                  2005
                                                                             --------------        ----------

<S>                                                                          <C>                   <C>
Salaries and benefits expense reimbursements                                 $       64,572        $   103,838

Cash Distributions Paid to the General Partners
</TABLE>

In accordance with the Partnership Agreement, the General Partner of the Fund,
Arch Street VIII Limited Partnership, receives 1% of cash distributions made to
partners. As of March 31, 2006, the Fund has not paid any cash distributions to
partners.

Additional information concerning cash distributions and other fees paid or
payable to the General Partner and its affiliates and the reimbursement of
expenses paid or payable to MMA and its affiliates during each of the two years
ended March 31, 2006 is presented in Note 5 to the Financial Statements.

Item 13.  Exhibits, Financial Statement Schedules and Reports on Form 8-K

(a) Documents filed as a part of this Report

In response to this portion of Item 13, the financial statements and the
auditors' reports relating thereto are submitted as a separate section of this
Report. See Index to the Financial Statements on page F-1 hereof.

All other financial statement schedules and exhibits for which provision is made
in the applicable accounting regulations of the Securities and Exchange
Commission are not required under related instructions or are inapplicable and
therefore have been omitted.

(b)      Exhibits

     31.1  Certification of Principal Executive Officer and Principal Financial
           Officer pursuant to section 302 of the Sarbanes-Oxley Act of 2002
     32.1  Certification of Principal Executive Officer and Principal Financial
           Officer pursuant to section 906 of the Sarbanes-Oxley Act of 2002

Item 14.   Principal Accountant Fees and Services


The Fund paid or accrued fees for services rendered by the principal accountant
for the two years ended March 31, 2005 as follows:

<TABLE>
<CAPTION>

                                                                                   2006                  2005
                                                                             --------------        ----------

<S>                                                                          <C>                   <C>
Audit fees                                                                   $       64,401        $       16,750
Tax fees                                                                     $        2,400        $        1,950
</TABLE>

No other fees were paid or accrued to the principal accountants
during the two years ended March 31, 2006


<PAGE>


                                                                      SIGNATURES



Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange
Act of 1934, the registrant has duly caused this Report to be signed on its
behalf by the undersigned, thereunto duly authorized.

      BOSTON FINANCIAL TAX CREDIT FUND VIII, A LIMITED PARTNERSHIP

      By:   Arch Street VIII Limited Partnership
            its General Partner

     By:/s/Jenny Netzer                              Date:    June 28, 2006
        ---------------------------------------              ----------------
           Jenny Netzer
           Executive Vice President
           MMA Financial, Inc.



Pursuant to the requirements of the Securities Exchange Act of 1934, this report
has been signed by the following persons on behalf of the Managing General
Partner of the Fund and in the capacities and on the dates indicated:


     By:   /s/Jenny Netzer                              Date:    June 28, 2006
           ---------------------------------------              -------------
           Jenny Netzer
           Executive Vice President
           MMA Financial, Inc.


     By:   /s/Michael H. Gladstone                      Date:   June 28, 2006
           -----------------------------                       -------------
           Michael H. Gladstone
           Principal
           MMA Financial, Inc.




<page>
         BOSTON FINANCIAL TAX CREDIT FUND VIII, A LIMITED PARTNERSHIP

                          ANNUAL REPORT ON FORM 10-KSB
                        FOR THE YEAR ENDED MARCH 31, 2006
                                      INDEX

<TABLE>
<CAPTION>

                                                                               Page No.

     Report of Independent Registered Public Accounting Firm
<S>                                                                              <C>
        for the years ended March 31, 2006 and 2005                              F-2

     Financial Statements

       Balance Sheet - March 31, 2006                                            F-3

       Statements of Operations - For the years ended
         March 31, 2006 and 2005                                                 F-4

       Statements of Changes in Partners' Equity (Deficiency) -
         For the years ended March 31, 2006 and 2005                             F-5

       Statements of Cash Flows - For the years ended
         March 31, 2006 and 2005                                                 F-6

       Notes to the Financial Statements                                         F-7


</TABLE>
<PAGE>



             Report of Independent Registered Public Accounting Firm




To the Partners of
Boston Financial Tax Credit Fund VIII, A Limited Partnership


In our opinion, the financial statements listed in the accompanying index
present fairly, in all material respects, the financial position of Boston
Financial Tax Credit Fund VIII, A Limited Partnership ("the Partnership") at
March 31, 2006, and the results of its operations and its cash flows for each of
the two years in the period ended March 31, 2006 in conformity with accounting
principles generally accepted in the United States of America. These financial
statements are the responsibility of the Partnership's management. Our
responsibility is to express an opinion on these financial statements based on
our audits. We conducted our audits of these statements in accordance with the
standards of the Public Company Accounting Oversight Board (United States).
Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.



PricewaterhouseCoopers LLP
Boston, Massachusetts
June 28, 2006


<PAGE>


          BOSTON FINANCIAL TAX CREDIT FUND VIII, A LIMITED PARTNERSHIP
                                  BALANCE SHEET
                                 March 31, 2006


<TABLE>
<CAPTION>


         Assets

<S>                                                                                               <C>
Cash and cash equivalents                                                                         $       346,666
Investment securities, at fair value (Note 3)                                                             148,921
Investment in Local Limited Partnerships (Note 4)                                                       6,987,428
Other assets                                                                                                1,794
                                                                                                  ---------------
   Total Assets                                                                                   $     7,484,809
                                                                                                  ===============

Liabilities and Partners' Equity

Due to affiliate (Note 5)                                                                         $       754,969
Accrued expenses                                                                                           55,004
                                                                                                  ---------------
   Total Liabilities                                                                                      809,973
                                                                                                  ---------------

General, Initial and Investor Limited Partners' Equity                                                  6,675,915
Net unrealized losses on investment securities                                                             (1,079)
                                                                                                  ---------------
   Total Partners' Equity                                                                               6,674,836
                                                                                                  ---------------
   Total Liabilities and Partners' Equity                                                         $     7,484,809
                                                                                                  ===============

The accompanying notes are an integral part of these financial statements.
</TABLE>

<PAGE>

        BOSTON FINANCIAL TAX CREDIT FUND VIII, A LIMITED PARTNERSHIP

                            STATEMENTS OF OPERATIONS
                   For the Years Ended March 31, 2006 and 2005

<TABLE>
<CAPTION>

                                                                                 2006                     2005
                                                                           ----------------         ---------------
        Revenue:
<S>                                                                        <C>                      <C>
   Investment                                                              $         33,523         $         5,896
                                                                           ----------------         ---------------
     Total Revenue                                                                   33,523                   5,896
                                                                           ----------------         ---------------

Expense:
   Asset management fees, affiliate (Note 5)                                        238,505                 233,865
   Provision for valuation allowance on advances to Local
     Limited Partnerships (Note 4)                                                        -                  73,076
   Provision for valuation allowance on investments in Local
     Limited Partnerships (Note 4)                                                   11,633                  96,000
   General and administrative (includes reimbursements
     to an affiliate in the amount of $64,572 and
     $103,838 in 2006 and 2005, respectively)                                       188,925                 178,022
   Amortization                                                                      20,938                  28,126
                                                                           ----------------          --------------
     Total Expense                                                                  460,001                 609,089
                                                                           ----------------         ---------------

Loss before equity in losses of Local Limited Partnerships                         (426,478)               (603,193)

Equity in losses of Local Limited Partnerships (Note 4)                            (755,164)             (1,191,329)
                                                                           ----------------         ---------------

Net Loss                                                                   $     (1,181,642)        $    (1,794,522)
                                                                           ================         ===============

Net Loss allocated:
   General Partners                                                        $        (11,816)        $       (17,945)
   Limited Partners                                                              (1,169,826)             (1,776,577)
                                                                           ----------------         ---------------
                                                                           $     (1,181,642)        $    (1,794,522)
                                                                           ================         ===============
Net Loss per Limited Partner Unit
   (36,497 Units)                                                          $         (32.05)        $        (48.68)
                                                                           ================         ================

The accompanying notes are an integral part of these financial statements.

</TABLE>

<PAGE>
        BOSTON FINANCIAL TAX CREDIT FUND VIII, A LIMITED PARTNERSHIP


             STATEMENTS OF CHANGES IN PARTNERS' EQUITY (DEFICIENCY)
                   For the Years Ended March 31, 2006 and 2005



<TABLE>
<CAPTION>

                                                                                                             Net
                                                                     Initial           Investor          Unrealized
                                                  General            Limited            Limited             Gains
                                                 Partners           Partners           Partners           (Losses)          Total

<S>                                            <C>               <C>                <C>                <C>            <C>
Balance at March 31, 2004                      $    (219,826)    $          100     $    9,871,805     $         520  $  9,652,599
                                               -------------     --------------     --------------     -------------  ------------

Comprehensive Loss:
  Change in net unrealized
       gains on investment securities
       available for sale                                  -                  -                  -              (476)         (476)
  Net Loss                                           (17,945)                 -         (1,776,577)                -    (1,794,522)
                                               -------------     --------------     --------------     -------------   ------------
Comprehensive Loss                                   (17,945)                 -         (1,776,577)             (476)   (1,794,998)
                                               -------------     --------------     --------------     -------------   ------------

Balance at March 31, 2005                           (237,771)               100          8,095,228                44      7,857,601
                                               -------------     --------------     --------------     -------------   ------------

Comprehensive Loss:
  Change in net unrealized
       gains on investment securities
       available for sale                                  -                  -                  -            (1,123)       (1,123)
  Net Loss                                           (11,816)                 -         (1,169,826)                -    (1,181,642)
                                               -------------     --------------     --------------     -------------   ------------
Comprehensive Loss                                   (11,816)                 -         (1,169,826)           (1,123)   (1,182,765)
                                               -------------     --------------     --------------     -------------   ------------

Balance at March 31, 2006                      $    (249,587)    $          100     $    6,925,402     $      (1,079)  $  6,674,836
                                               =============     ==============     ==============     =============   ============

The accompanying notes are an integral part of these financial statements.

</TABLE>

<PAGE>
        BOSTON FINANCIAL TAX CREDIT FUND VIII, A LIMITED PARTNERSHIP


                            STATEMENTS OF CASH FLOWS
                   For the Years Ended March 31, 2006 and 2005
<TABLE>
<CAPTION>


                                                                                 2006                     2005
                                                                           ----------------         ----------
Cash flows from operating activities:
<S>                                                                        <C>                      <C>
   Net Loss                                                                $     (1,181,642)        $    (1,794,522)
   Adjustments to reconcile net loss to net
     cash used for operating activities:
   Equity in losses of Local Limited Partnerships                                   755,164               1,191,329
   Provision for valuation allowance on advances to Local
     Limited Partnerships                                                                 -                  73,076
   Provision for valuation allowance on investments in Local
     Limited Partnerships                                                            11,633                  96,000
   Amortization                                                                      20,938                  28,126
   Accretion                                                                          1,616                       -
   Other non-cash items                                                                 (17)                   (177)
   Increase (decrease) in cash arising from changes
     in operating assets and liabilities:
     Other assets                                                                    (1,590)                    (62)
     Due to affiliate                                                              (471,923)                337,703
     Accrued expenses                                                                10,181                  14,811
                                                                           ----------------         ---------------
Net cash used for operating activities                                             (855,640)                (53,716)
                                                                           ----------------         ---------------

Cash flows from investing activities:
   Purchase of investment securities                                               (276,616)                      -
   Proceeds from maturities of investment securities                                130,945                  12,441
   Advances to Local Limited Partnerships                                                 -                 (73,076)
   Cash distributions received from Local
     Limited Partnerships                                                         1,015,591                 105,304
                                                                           ----------------         ---------------
Net cash provided by investing activities                                           869,920                  44,669
                                                                           ----------------        ----------------

Net increase (decrease) in cash and cash equivalents                                 14,280                  (9,047)

Cash and cash equivalents, beginning                                                332,386                 341,433
                                                                           ----------------         ---------------

Cash and cash equivalents, ending                                          $        346,666         $       332,386
                                                                           ================         ===============

The accompanying notes are an integral part of these financial statements.
</TABLE>




<PAGE>


          BOSTON FINANCIAL TAX CREDIT FUND VIII, A LIMITED PARTNERSHIP
                        NOTES TO THE FINANCIAL STATEMENTS


1.   Organization

Boston Financial Tax Credit Fund VIII, A Limited Partnership (the "Fund") is a
Massachusetts  limited  partnership  organized to invest in other limited
partnerships  ("Local Limited  Partnerships")  which own and  operate  apartment
complexes which are eligible for low income housing tax credits that may be
applied against the federal income tax  liability of an investor.  The Fund's
objectives are to: (i) provide  investors with annual tax credits which they
may use to reduce  their federal income tax  liability;  (ii) provide  limited
cash  distributions  from the operations of apartment  complexes;  and (iii)
preserve and protect the Fund's capital.  Arch Street VIII Limited  Partnership
("Arch Street L.P."), a Massachusetts  limited  partnership consisting of Arch
Street VIII, Inc., a Massachusetts corporation  ("Arch Street,  Inc.") as the
sole general partner and MMA  Financial,  Inc.  ("MMA") as the sole limited
partner,  is the sole General  Partner of the Fund.  Arch Street L.P. and Arch
Street,  Inc.  are  affiliates of MMA. The fiscal year of the Fund ends on
March 31.

The Partnership Agreement authorizes the sale of up to 200,000 units of limited
partnership interest ("Units") at $1,000 per Unit in series. The first series
offered 50,000 Units. On July 29, 1994, the Fund held its final investor
closing. In total, the Fund received $36,497,000 of capital contributions from
investors admitted as Limited Partners, for a total of 36,497 Units.

Under the terms of the Partnership Agreement, the Fund originally designated 5%
of the Gross Proceeds from the sale of Units as a reserve for working capital of
the Fund and contingencies related to ownership of Local Limited Partnership
interests. The General Partner may increase or decrease such amounts from time
to time, as it deems appropriate. At March 31, 2006, the General Partner has
designated $495,587 of cash, cash equivalents and investment securities as such
Reserve.

Generally, profits, losses, tax credits and cash flows from operations are
allocated 99% to the Limited Partners and 1% to the General Partner. Net
proceeds from a sale or refinancing will be allocated 95% to the Limited
Partners and 5% to the General Partner, after certain priority payments. The
General Partners may have an obligation to fund deficits in their capital
accounts, subject to limits set forth in the Partnership Agreement. However, to
the extent that the General Partners' capital accounts are in a deficit
position, certain items of net income may be allocated to the General Partners
in accordance with the Partnership Agreement.

2.   Significant Accounting Policies

Cash Equivalents

Cash equivalents represent short-term, highly liquid instruments with original
maturities of 90 days or less.

Concentration of Credit Risk

The Fund invests its cash primarily in money market funds with commercial banks.
At times, cash balances at a limited number of banks and financial institutions
may exceed federally insured amounts. Management believes it mitigates its
credit risk by investing in major financial institutions.

Investment Securities

The Fund's investment securities are classified as "Available for Sale"
securities and reported at fair value as reported by the brokerage firm at which
the securities are held. All investment securities have fixed maturities.
Realized gains and losses from the sales of securities are based on the specific
identification method. Unrealized gains and losses are excluded from earnings
and reported as a separate component of partners' equity.


<PAGE>


          BOSTON FINANCIAL TAX CREDIT FUND VIII, A LIMITED PARTNERSHIP

                  NOTES TO THE FINANCIAL STATEMENTS (continued)


2. Significant Accounting Policies (continued)

Investments in Local Limited Partnerships

The Local Limited Partnerships in which the Fund invests are Variable Interest
Entities ("VIE"s). The Fund is involved with the VIEs as a non-controlling
limited partner equity holder. Because the Fund is not the primary beneficiary
of these VIEs, it accounts for its investments in the Local Limited Partnerships
using the equity method of accounting. As a result of its involvement with the
VIEs, the Fund's exposure to economic and financial statement losses is limited
to its investments in the VIEs ($6,987,428 at March 31, 2006). The Fund may be
subject to additional losses to the extent of any financial support that the
Fund voluntarily provides in the future. Under the equity method, a Local
Limited Partnership investment will not be carried below zero. To the extent
that equity in losses are incurred when the Fund's carrying value of the
respective Local Limited Partnership has been reduced to a zero balance, the
losses will be suspended and offset against future income. Income from Local
Limited Partnerships, where cumulative equity in losses plus cumulative
distributions have exceeded the total investment in Local Limited Partnerships,
will not be recorded until all of the related unrecorded losses have been
offset. To the extent that a Local Limited Partnership with a carrying value of
zero distributes cash to the Fund, that distribution is recorded as income on
the books of the Fund and is included in "other revenue" in the accompanying
financial statements.

The Tax Credits generated by Local Limited Partnerships are not reflected on the
books of the Fund as such credits are allocated to partners for use in
offsetting their Federal income tax liability.

Excess investment costs over the underlying net assets acquired have arisen from
acquisition fees paid and expenses reimbursed to an affiliate of the Fund. These
fees and expenses are included in the Fund's investments in Local Limited
Partnerships and are being amortized on a straight-line basis over 35 years
until a Local Limited Partnership's respective investment balance has been
reduced to zero.

The Fund provides advances to the Local Limited Partnerships to finance
operations or to make debt service payments. The Fund assesses the
collectibility of these advances at the time the advance is made and records a
reserve if collectibility is not reasonably assured.

The Fund does not guarantee any of the mortgages or other debt of the Local
Limited Partnerships.

The Fund, as a limited partner in the Local Limited Partnerships, is subject to
risks inherent in the ownership of property which are beyond its control, such
as fluctuations in occupancy rates and operating expenses, variations in rental
schedules, proper maintenance of facilities and continued eligibility of tax
credits. If the cost of operating a property exceeds the rental income earned
thereon, the Fund may deem it in its best interest to voluntarily provide funds
in order to protect its investment.

The General Partners have decided to report results of the Local Limited
Partnerships on a 90-day lag basis because the Local Limited Partnerships report
their results on a calendar year basis. Accordingly, the financial information
about the Local Limited Partnerships that is included in the accompanying
financial statements is as of December 31, 2005 and 2004 and for the years then
ended.

The Fund has implemented policies and practices for assessing
other-than-temporary declines in values of its investments in Local Limited
Partnerships. Periodically, the carrying values of the investments are compared
to their respective fair values. If an other-than-temporary decline in carrying
value exists, a provision to reduce the asset to fair value, as calculated based
primarily on remaining tax benefits, will be recorded in the Fund's financial
statements.


<PAGE>


                  NOTES TO THE FINANCIAL STATEMENTS (continued)


2. Significant Accounting Policies (continued)

Use of Estimates

The preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amounts of assets,
liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of revenues and expenses
during the reporting period. Actual results could differ from those estimates.

Fair Value of Financial Instruments

Statements of Financial Accounting Standards No. 107 ("SFAS No. 107"),
Disclosures About Fair Value of Financial Instruments, requires disclosure for
the fair value of most on- and off-balance sheet financial instruments for which
it is practicable to estimate that value. The scope of SFAS No. 107 excludes
certain financial instruments, such as trade receivables and payables when the
carrying value approximates the fair value and investments accounted for under
the equity method, and all nonfinancial assets, such as real property. Unless
otherwise described, the fair values of the Fund's assets and liabilities, which
qualify as financial instruments under SFAS No. 107, approximate their carrying
amounts in the accompanying balance sheet.

Income Taxes

No provision for income taxes has been made, as the liability for such taxes is
an obligation of the partners of the Fund.

3.   Investment Securities

A summary of investment securities is as follows:
<TABLE>
<CAPTION>

                                                                   Gross               Gross
                                                                Unrealized          Unrealized            Fair
                                               Cost                Gains              Losses              Value

Debt securities issued by the US
Treasury and other US Government
<S>                                       <C>                 <C>                 <C>                <C>
Agencies                                  $      150,000      $            -      $       (1,079)    $      148,921
                                          --------------      --------------      ---------------    --------------

Investment securities
   At March 31, 2006                      $      150,000      $            -      $       (1,079)    $      148,921
                                          ==============      ==============      ==============     ==============

The contractual maturities at March 31, 2006 are as follows:

                                                                                                    Fair
                                                                         Cost                       Value

Due in less than one year                                            $     150,000              $     148,921
                                                                     -------------              -------------
                                                                     $     150,000              $     148,921
                                                                     =============              =============

Proceeds from the maturities of investment securities were approximately
$131,000 and $12,000 during the years ended March 31, 2006 and 2005,
respectively.
</TABLE>



<PAGE>
        BOSTON FINANCIAL TAX CREDIT FUND VIII, A LIMITED PARTNERSHIP


                  NOTES TO THE FINANCIAL STATEMENTS (continued)


4.   Investments in Local Limited Partnerships

The Fund has limited partnership interests in ten Local Limited Partnerships,
which were organized for the purpose of owning and operating multi-family
housing complexes, all of which are government assisted. The Fund's ownership
interest in the Local Limited Partnerships is 99%, with the exception of
Springwood, which is 79.20%, Hemlock Ridge, which is 77% and Pike Place and West
End Place, which are 90%. The Fund may have negotiated or may negotiate options
with the Local General Partners to purchase or sell the Fund's interests in the
Local Limited Partnerships at the end of the Compliance Period at nominal
prices. In the event that Local Limited Partnerships are sold to third parties,
or upon dissolution of the Local Limited Partnerships, proceeds will be
distributed according to the terms of each Local Limited Partnership agreement.

The following is a summary of investments in Local Limited Partnerships at March
31, 2006:
<TABLE>
<CAPTION>

<S>                                                                                                 <C>
Capital contributions and advances paid to Local Limited Partnerships                               $    30,513,168

Cumulative equity in losses of Local Limited Partnerships (excluding cumulative
   unrecognized losses of $2,652,229)                                                                   (19,353,954)

Cumulative cash distributions received from Local Limited Partnerships                                   (2,127,316)
                                                                                                    ---------------

Investments in Local Limited Partnerships before adjustments                                              9,031,898

Excess investment costs over the underlying assets acquired:

   Acquisition fees and expenses                                                                          1,048,010

   Cumulative amortization of acquisition fees and expenses                                                (308,412)
                                                                                                    ---------------

Investments in Local Limited Partnerships before valuation allowance                                      9,771,496

Valuation allowance on investments in Local Limited Partnerships                                         (2,784,068)
                                                                                                    ---------------

Investments in Local Limited Partnerships                                                           $     6,987,428
                                                                                                    ===============
</TABLE>

The Fund has recorded a valuation allowance for its investments in certain Local
Limited Partnerships in order to appropriately reflect the estimated net
realizable value of these investments. During the year ended March 31, 2006, the
Fund concluded that one of the Local Limited Partnerships had experienced an
other-than-temporary decline in its carrying value and impairment losses were
recorded for Meadow Wood Associates of Pella, a Limited Partnership for
approximately $12,000. During the year ended March 31, 2005, the Fund concluded
that one of the Local Limited Partnerships had experienced an
other-than-temporary decline in its carrying value and impairment losses were
recorded for Meadow Wood Associates of Pella, a Limited Partnership for
approximately $96,000.

Summarized combined financial information of the Local Limited Partnerships in
which the Fund has invested as of December 31, 2005 and 2004 (due to the Fund's
policy of reporting the financial information of its Local Limited Partnership
interests on a 90 day lag basis) is as follows:


<PAGE>

        BOSTON FINANCIAL TAX CREDIT FUND VIII, A LIMITED PARTNERSHIP

                  NOTES TO THE FINANCIAL STATEMENTS (continued)


4. Investments in Local Limited Partnerships (continued)

Summarized Balance Sheets - as of December 31,
<TABLE>
<CAPTION>

                                                                                   2005                2004
                                                                             ----------------    ----------------

Assets:
<S>                                                                          <C>                 <C>
   Investment property, net                                                  $     46,288,383    $     48,126,113
   Other assets                                                                     3,490,130           3,609,728
                                                                             ----------------    ----------------
     Total Assets                                                            $     49,778,513    $     51,735,841
                                                                             ================    ================

Liabilities and Partners' Equity (Deficiency):
   Mortgage notes payable                                                    $     33,255,554    $     32,885,531
   Other liabilities                                                               11,426,271          11,028,487
                                                                             ----------------    ----------------
     Total Liabilities                                                             44,681,825          43,914,018
                                                                             ----------------    ----------------

Fund's Equity                                                                       6,584,831           8,893,788
Other partners' deficiency                                                         (1,488,143)         (1,071,965)
                                                                             ----------------    ----------------
     Total Partners' Equity                                                         5,096,688           7,821,823
                                                                             ----------------    ----------------
     Total Liabilities and Partners' Equity (Deficiency)                     $     49,778,513    $     51,735,841
                                                                             ================    ================

Summarized Statements of Operations - for the year
ended December 31,

                                                                                   2005                2004
                                                                             ----------------    ----------------

Rental and other income                                                      $      9,466,412    $      9,157,494

Expenses:
   Operating                                                                        5,757,502           5,730,458
   Interest                                                                         2,871,932           2,836,555
   Depreciation and amortization                                                    2,217,862           2,284,398
                                                                             ----------------    ----------------
     Total Expenses                                                                10,847,296          10,851,411
                                                                             ----------------    ----------------

Net Loss                                                                     $     (1,380,884)   $     (1,693,917)
                                                                             ================    ================

Fund's share of net loss (includes adjustment from previous year)            $     (1,293,035)   $     (1,601,766)
                                                                             ================    ================
Other partners' share of net loss                                            $        (73,218)   $        (92,151)
                                                                             ================    ================
</TABLE>

For the years ended March 31, 2006 and 2005, the Fund has not recognized
$537,871 and $410,437, respectively, of equity in losses relating to certain
Local Limited Partnerships in which cumulative equity in losses and
distributions exceeded its total investment in the Local Limited Partnership.

The Fund's equity as reflected by the Local Limited Partnerships of $6,584,830
differs from the Fund's investments in Local Limited Partnerships before
adjustments of $9,031,898 primarily due to cumulative unrecognized losses as
described above and differences in the accounting treatment of miscellaneous
items.


<PAGE>

        BOSTON FINANCIAL TAX CREDIT FUND VIII, A LIMITED PARTNERSHIP

                  NOTES TO THE FINANCIAL STATEMENTS (continued)

5.   Transactions with Affiliates

An affiliate of the General Partner receives a base amount of 0.50% (annually
adjusted by the CPI factor) of the Gross Proceeds as the annual Asset Management
Fee for administering the affairs of the Fund. Asset Management Fees of $238,505
and $233,865 have been included in expenses for the years ended March 31, 2006
and 2005, respectively. Included in due to affiliate at March 31, 2006 is
$464,554 of Asset Management Fees. During the years ended March 31, 2006 and
2005, $775,000 and $0, respectively, were paid out of available cash flow for
Asset Management Fees.

An affiliate of the General Partner is reimbursed for the cost of the Fund's
salaries and benefits expenses. Included in general and administrative expenses
for the years ended March 31, 2006 and 2005 is $64,572 and $103,838,
respectively that the Fund incurred for these expenses. During the years ended
March 31, 2006 and 2005, no salaries and benefits were paid to the affiliate of
the General Partner. As of March 31, 2006, $290,415 is payable to an affiliate
of the General Partner.

6.   Federal Income Taxes

The following schedule reconciles the reported financial statement net loss for
the fiscal years ended March 31, 2006 and 2005 to the net loss reported on the
Form 1065, U.S. Partnership Return of Income for the years ended December 31,
2005 and 2004:

<TABLE>
<CAPTION>
                                                                                    2006                  2005
                                                                               --------------         --------------

<S>                                                                            <C>                    <C>
Net loss per financial statements                                              $   (1,181,642)        $  (1,794,522)

Equity in losses of Local Limited Partnerships for tax purposes in
   excess of equity in losses for financial reporting purposes                       (126,160)             (108,986)

Equity in losses of Local Limited Partnerships not recognized
   for financial reporting purposes                                                  (537,871)             (410,437)

Adjustment to reflect March 31 fiscal year end to
   December 31 taxable year end                                                        23,694                (4,011)

Amortization for tax purposes in excess of amortization
   for financial reporting purposes                                                   (17,171)               (9,983)

Provision for valuation of advances allowance on Local
   Limited Partnerships, net of recovery not deductible for tax purposes                    -                73,076

Provision for valuation allowance on investments in Local
   Limited Partnerships, not deductible for tax purposes                               11,633                96,000
                                                                               --------------         -------------

Net Loss per tax return                                                        $   (1,827,517)        $  (2,158,863)
                                                                               ==============         =============
</TABLE>

The differences in the assets and liabilities of the Fund for financial
reporting purposes and tax purposes as of March 31, 2006 and December 31, 2005,
respectively are as follows:
<TABLE>
<CAPTION>

                                                                Financial
                                                                Reporting            Tax
                                                                Purposes          Purposes           Differences

<S>                                                         <C>                <C>                 <C>
Investments in Local Limited Partnerships                   $    6,987,428     $    7,397,952      $     (410,524)
                                                            ==============     ==============      ==============
Other assets                                                $      497,381     $    5,206,053      $   (4,708,672)
                                                            ==============     ==============      ==============
Liabilities                                                 $      809,973     $      733,765      $       76,208
                                                            ==============     ==============      ==============
</TABLE>



<PAGE>
        BOSTON FINANCIAL TAX CREDIT FUND VIII, A LIMITED PARTNERSHIP


                  NOTES TO THE FINANCIAL STATEMENTS (continued)


6. Federal Income Taxes (continued)


The differences in assets and liabilities of the Fund for financial reporting
and tax purposes are primarily attributable to: (i) the cumulative equity in
losses from Local Limited Partnerships for tax reporting purposes is
approximately $2,283,000 more than for financial reporting purposes, including
approximately $2,652,000 of losses the Fund has not recognized relating to three
Local Limited Partnerships whose cumulative equity in losses exceeded the total
investment; (ii) the cumulative amortization of acquisition fees for tax
purposes exceeds financial reporting purposes by approximately $91,000; (iii)
the Fund has provided an impairment allowance of approximately $2,784,000
against its investments in Local Limited Partnerships for financial reporting
purposes; and (iv) organizational and offering costs of approximately $4,664,000
that have been capitalized for tax purposes are charged to Limited Partners'
equity for financial reporting purposes.

7.   Significant Subsidiaries

The following Local Limited Partnerships invested in by the Fund represent more
than 20% of the Fund's total assets or equity as of March 31, 2006 or 2005 or
net losses for the years ended either March 31, 2006 or 2005. The following
financial information represents the performance of these Local Limited
Partnerships for the years ended December 31, 2005 and 2004:
<TABLE>
<CAPTION>

Beaverdam Creek Associates, a Limited Partnership                                  2005                     2004
-------------------------------------------------                             ---------------           -------------

<S>                                                                           <C>                       <C>
Total Assets                                                                  $     5,705,378           $   5,879,403
Total Liabilities                                                             $     4,303,527           $   3,156,683
Revenue                                                                       $     1,017,681           $     953,633
Net Loss                                                                      $        (5,240)          $     (14,707)

Oak Knoll Renaissance, Limited Partnership
------------------------------------------
Total Assets                                                                  $     8,021,938           $   8,430,008
Total Liabilities                                                             $     5,150,319           $   5,401,207
Revenue                                                                       $     1,991,970           $   1,975,487
Net Loss                                                                      $      (109,750)          $    (389,223)

Schickedanz Brothers Palm Beach Limited
---------------------------------------
Total Assets                                                                  $    10,602,655           $  10,955,205
Total Liabilities                                                             $     9,940,024           $   9,966,707
Revenue                                                                       $     1,807,672           $   1,798,639
Net Loss                                                                      $      (438,207)          $    (337,700)

</TABLE>