Only operators properly registered for Value Added Tax (VAT) purposes may charge VAT on the supply of goods and services.

Compulsory registration

With effect from 1 January 2024 a trader is liable to register for VAT if the value of taxable supplies exceeds or is expected to exceed US$25,000.00 or ZiG equivalent within a period of 12 months. In cases where the operator has reached/exceeded a turnover of US$25,000.00 or ZiG equivalent but failed to register, the Commissioner General of the Zimbabwe Revenue Authority (ZIMRA) may compulsorily register the operator. The operator would be required to pay the VAT due, interest and penalties on the computed debt. Failure to register for VAT constitutes an offence in terms of the VAT Act (Chapter 23:12).

With effect from 1 January 2024 the following registration amounts and conditions apply to the various categories of VAT:

Who may be excluded from registration?

The following will not be obliged to register for VAT:

• Traders who will be solely dealing in exempt supplies;
• Any person conducting private or recreational pursuit or hobby;
• Any service provided by an employee to his employer or small traders whose taxable turnover is below US$25,000.00 or ZiG equivalent per annum

VAT registration requirements

1. Must be registered with ZIMRA and have a TIN Number.
2. Payments for all tax heads must be up to date.
3. Sales Schedule from the time of commencement of trade to date.
4. A sample of sales invoices showing customers' name and telephone numbers OR confirmed and signed contracts.
5. Sales projections schedule for the next 12 months.
6. Current stamped bank statement.
7. Letter appointing public officer.
8. Valid lease agreement in the company name (if the property is rented) or title deed.

How to register for VAT

• Must be registered with ZIMRA having a TIN Number.
• Registration must be done in TaRMS
• Taxpayer profile > Tax Type > New Tax Type - select VAT
• Select Local / Export Salesi.e. this is the most common
• Effective Date of Registration(The first day of the next month after reaching of threshold)
• Select Compulsory Registration (If the threshold has already been met) or Voluntary Registration (If the threshold is yet to be met)
• Taxable Turnover(total turnover in USD for the past 12 months)
• Put nil i.e. zero (0) on the other fields like exempt turnover, the value of exports or imports, if not applicable
• Preferred Tax Period (If classified D) - Select not applicable
• Select Assets the company has and put their values.
• If it’s Compulsory Registration Input “sales schedule for the past 12 months” in US$ on the system platform.
• If it’s Voluntary Registration Input “sales schedule for the next 12 months”in US$ on the system platform
• Attach All the above-mentioned documents where the page says “Attach file”

Upon registration, every registered operator will be issued with a certificate of registration and such certificate shall be displayed prominently. This will allow for easy identification of traders registered for VAT. 

What are the responsibilities of a registered person?

A registered person is obliged to comply with the following requirements of the VAT Act:

• Keep accounting records for at least six years after the tax period to which they relate
• Complete and submit VAT  returns as per requirements
• Calculate and remit the VAT due to the Commissioner General of ZIMRA on or before the due date
• Issue fiscal tax invoices with effect from 1 January 2022, debit notes or credit notes
• Account for VAT if one sells or retains stock or assets.
• Advise the Commissioner General of any changes in business details or when one ceases trade.

VAT of deregistration

Deregistration can be done at the Commissioner’s discretion, on voluntary application, or on cessation of trade. On cessation of trade, notice is given within 21 days of the date of such cessation of trade. Application for deregistration is done in TaRMS. Taxpayers should attach all documents supporting deregistration application and select a future effective date of date deregistration to allow audit and approval processing. Approval for deregistration is done when the Commissioner is satisfied that all obligations have been met in full.