As ZIMRA continues to preach about compliance. Its very important that business heads the preaching. Here is a summary of the specific actions a VAT-registered business must take today to ensure full compliance under the TaRMS-FDMS regime. These actions fall into three categories: System & Technical Setup, Data Integrity & Filing, and Internal Process Management.
🛠️ I. System and Technical Setup
These are the non-negotiable hardware and software requirements driven by FDMS.
1. Maintain Functional Fiscal Devices
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Mandate: Ensure all points of sale (POS) have a certified, functional, and correctly configured Fiscal Device (e.g., fiscal printer or register).
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Action: Regularly check that the device is connected to the internet and successfully transmitting sales data to the ZIMRA FDMS server in real-time or near real-time.
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Verification: Conduct regular spot checks to confirm the Fiscal Tax Invoice is correctly printing the required fields, including the QR code, the VAT registration number, and the buyer’s TIN/VAT number for B2B transactions.
2. Verify TaRMS Registration and Access
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Mandate: Every registered business must have an active login to the TaRMS Self-Service Portal (SSP).
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Action: Log into the SSP immediately to ensure your account is active. If you encounter issues, contact ZIMRA’s dedicated TaRMS support.
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Master Data Clean-up: Use the SSP to verify and update all master data (physical address, contact details, bank details). Inaccurate data will prevent system notifications and cause issues with automated processes like Tax Clearance issuance.
📝 II. Data Integrity and Filing
These actions ensure that the data captured by your systems aligns with the data ZIMRA sees in TaRMS.
3. Reconcile FDMS Data with Internal Books
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Mandate: Ensure your internal accounting system’s monthly sales figures exactly match the aggregate sales data recorded and transmitted by your Fiscal Devices to FDMS.
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Action: Before filing your VAT 7 return, pull the sales report from your Fiscal Device/FDMS and compare it, line by line, with your general ledger. Any discrepancy will trigger an automatic audit flag in TaRMS.
4. Verify Input VAT Claims
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Mandate: Be able to prove that the VAT you claim on purchases (Input VAT) was actually recorded as Output VAT by your supplier.
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Action: Strictly demand and retain ZIMRA-compliant Fiscal Tax Invoices for all business purchases. Only claim Input VAT for invoices that you are confident were fiscalised and transmitted by the supplier. Do not rely on pro-forma or non-fiscal invoices.
5. File Returns on Time
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Mandate: The VAT 7 return must be filed via the TaRMS SSP by the due date (generally the 15th or 25th of the month following the tax period—always check ZIMRA’s current Public Notice for the exact date).
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Action: Do not wait for manual input. File the return and make the corresponding payment immediately. TaRMS penalizes late filing with a daily fee and late payment with high interest and statutory penalties.
👥 III. Internal Process Management
These are the operational adjustments necessary to manage the digital compliance environment.
6. Pay Tax with Correct Reference
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Mandate: Use the new Commissioner General Single Account for all tax payments.
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Action: Ensure your bank payment includes the correct Taxpayer Identification Number (TIN) and the specific tax type reference so that TaRMS can automatically allocate the payment to the corresponding liability (e.g., VAT for the period). Unallocated payments still accrue penalties.
7. Train Staff and Agents
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Mandate: All staff involved in sales and accounting must understand the new digital requirements.
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Action: Train POS staff on the correct procedure for capturing the buyer’s TIN on B2B transactions. Ensure your accountants or tax agents are fully proficient with the TaRMS SSP navigation, including how to check the ledgers and download the automatic ITF263 (Tax Clearance).
By treating these compliance steps as operational necessities rather than mere administrative burdens, a VAT-registered business can successfully leverage the TaRMS/FDMS platform and minimize its exposure to costly penalties and audit risks.
