For quick processing of VAT Refund claims, Registered Operators are required to provide the following to ZIMRA through the online services (where possible).

RTGS only refund claims

  1. Submit completed VAT 7 return (preferably online)
  2. Attach eligible and printable Input Tax Schedule showing the following: i) Invoice Date, ii) Invoice Number, iii) Name of Supplier, iv) Supplier VAT Number, v) Description of Goods/Services, vi) Value Excluding VAT, vii)VAT Amount, and viii) Value Including VAT
  3. Attach schedules for debit/credit notes and VAT withholding tax where such claims are applicable.

Refunds with Forex Component

  1. Convert all forex transaction to RTGS using the prevailing rate on the date of each transaction.
  2. Complete new VAT 7 return available on the ZIMRA website.( one with Part V which shows a summary split of the USD & RTGS currencies)
  3. Submit the return and all other attachments online. (the system captures information up to part 1V)
  4. Submit a manual new VAT Return (for the purpose of Part V)
  5. The Input Tax Schedules for USD claims should show claims in USD, the Conversion Rate per transaction and the RTGS equivalent
  6. Submit a Reconciliation Table, which clearly shows the breakdown of the refund claim as per table below:
   

USD

RTGS

Total

 

Period (e.g. January 2020)

Amount in USD

VAT in USD

Converted VAT to RTGS

Amount in RTGS

VAT in RTGS

Combined VAT (RTGS)

 

Standard Rated

          

 

 

Zero rated

          

 

 

Exempt Supplies

          

 

 

Debit Notes Issued/Credit Notes Received

          

 

 

Sub Total

 

 

 

 

 

 

Add:

Fringe Benefits

          

 

 

Motoring benefit

          

 

 

Cellphone

          

 

 

Sub Total

 

 

 

 

 

 

 

TOTAL

 

 

 

 

 

 

Less:

Purchases

          

 

 

Purchases

          

 

 

Bills of Entry

          

 

 

Credit Notes Issued/Debit Notes Received

          

 

 

Sub Total

 

 

 

 

 

 

 

Amount Refundable from ZIMRA

 

 

 

 

 

 

LESS:

WHT on VAT-CREDIT

          

 

 

TOTAL AMOUNT REFUNDABLE ON THE VAT RETURN

 

 

 

 

 

 

VAT Refunds Conditions:

  1. Refunds turnaround time as per legislation (Value Added Tax Act Chapter (23:12) is 30 days provided the Registered Operator furnishes all the required documents to ZIMRA on time.
  2. VAT refunds are processed where Registered Operator is up to date in terms of all returns for all registered tax heads
  3. In case of a Registered Operator owing in any of the tax heads, ZIMRA will offset the debt with the amount(s) owing and refund the balance.
  4. VAT Refunds are subject to verification audits

My Taxes, My Duties: Building my Zimbabwe!!

 

Disclaimer

This article was compiled by the Zimbabwe Revenue Authority for information purposes only. ZIMRA shall not accept responsibility for loss or damage arising from use of material in this article and no liability will attach to the Zimbabwe Revenue Authority. 

 

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