Value-added tax (VAT) is an indirect tax that is added to the cost of goods and services at each stage of production and distribution, until it is finally paid by the consumer. The VAT rate in Zimbabwe is 15%.
VAT is a consumption tax, which means that it is paid by the final consumer of the goods or services. The businesses that sell the goods or services are responsible for collecting the VAT and remitting it to the government.
There are a number of goods and services that are exempt from VAT in Zimbabwe. These include:
- Basic foodstuffs
- Education
- Healthcare
- Financial services
- Postal services
- Transport
There are also a number of businesses that are not required to register for VAT in Zimbabwe. These include:
- Businesses with an annual turnover of less than US$40,000
- Businesses that only sell exempt goods or services
Businesses that are required to register for VAT in Zimbabwe must do so with the Zimbabwe Revenue Authority (ZIMRA). Once a business is registered for VAT, it must collect VAT on all of its sales of goods and services.
VAT returns must be filed with ZIMRA on a monthly if you are registered in category C and bio monthly if registered in category A and B, then semi annualy if registered in category D. The returns must show the amount of VAT collected, the amount of VAT paid on purchases, and the amount of VAT due to the government.
VAT is a complex tax, and businesses that are required to register for VAT should seek professional advice to ensure that they are complying with the law.
Here are some additional information about VAT in Zimbabwe:
- VAT is a tax on consumption, which means that it is paid by the final consumer of the goods or services.
- The VAT rate in Zimbabwe is 15%.
- There are a number of goods and services that are exempt from VAT in Zimbabwe.
- Businesses that are required to register for VAT in Zimbabwe must do so with the Zimbabwe Revenue Authority (ZIMRA).
- VAT returns must be filed with ZIMRA on a quarterly basis.
- VAT is a complex tax, and businesses that are required to register for VAT should seek professional advice to ensure that they are complying with the law.
