Value-added tax (VAT)

02/09/2025
  • VAT is a transaction tax with varying implications for different transactions. Some transactions are taxed at 15% or 0%, while others are exempt. Input tax deductions may be claimed under certain provisions.
  • VAT is levied on every taxable supply by a registered person, which includes any supply of goods or services in the course of a taxable activity.
  • VAT is payable on all imports for local consumption, subject to certain exemptions. Import VAT is payable on the import value plus applicable customs duty.
  • Registered VAT vendors can deduct input tax credits paid in the course of taxable supplies, provided they have a tax invoice to support the deduction.
  • VAT returns are due by the 25th day following the end of the tax period.
  • All registered taxpayers must use electronic fiscal registers linked to the Zimbabwe Revenue Authority (ZIMRA), with penalties for non-compliance.
  • Imported services now include all foreign services supplied to local recipients, with VAT paid on these services claimable as input tax.
  • VAT agents, designated from large companies, must deduct 10% of a gross invoice as VAT WHT and issue certificates to payees.
  • VAT on sales in foreign currency must be accounted for in the same currency.
  • Tax invoices must be fiscal tax invoices, with ordinary tax invoices ceasing to be valid for input tax credit support.
  • Exemption of tourist services provided to domestic customers was extended for a further 12 months from 1 November 2021.