Value Added Tax withholding Tax
Withholding of Value Added Tax (VAT) was introduced with effect from 1 January 2017 and some registered operators have since been appointed as VAT Withholding Tax agents. The VAT Withholding Tax agents’ role is to withhold a portion of the VAT when paying their suppliers who are registered for VAT.
What is Value Added Withholding Tax?
It is tax withheld by appointed agents when they pay their suppliers for the acquisition of taxable goods and services.
From whom should the tax be withheld?
VAT withholding agents should withhold tax from their suppliers who are registered for VAT. VAT withholding tax shall be withheld on payments of standard rated supplies. No VAT shall be withheld on payment for the supply of exempt and zero-rated supplies.
What is the rate of Value Added Withholding tax?
The rate of Value Added withholding tax shall be 1/3 of the output tax (VAT charged). In cases where payment of the supply is made in instalments, VAT shall be withheld on the output tax on each instalment.
What is the supplier supposed to do?
The supplier must:
- Receive a VAT withholding tax certificate from the agent.
- Claim the VAT withheld as a credit on submission of VAT returns.
- Attach a schedule of amounts withheld by various agents to the VAT return.
- Keep the tax certificates obtained from withholding agents for a period of six years.
NB: The VAT withholding tax deducted will reduce the amount of VAT payable during the tax period or increase the refundable amount.
Should a supplier supply less goods and or services because VAT has been withheld?
The amount withheld is VAT and it is remitted to ZIMRA by the agent. The supplier claims the tax as a credit on the VAT return which means the tax is an advance payment. Therefore, the supplier is not supposed to supply less goods or services following the withholding of the tax.
How is the VAT Withholding Tax paid?
Every value added withholding tax agent shall withhold and remit to ZIMRA from each amount to be paid to an operator, in the currency in which the goods and services concerned were purchased.
Below is a consolidated list of all Value Added Withholding Tax Agents who were appointed in terms of Section 50A of the Value Added Tax Act [Chapter 23:12].
|
NAME OF REGISTERED OPERATOR |
BP NUMBER |
NAME OF REGISTERED OPERATOR |
BP NUMBER |
|||||||
|
1 |
Ashanti Goldfields Zimbabwe Ltd |
200001153 |
41 |
Econet Wireless (Pvt) Ltd |
200002652 |
|||||
|
2 |
Trojan Nickel Mine Ltd |
200000085 |
42 |
Net One Cellular (Pvt) Ltd |
200004531 |
|||||
|
3 |
Afrochine Smelting (Pvt) Ltd |
200116318 |
43 |
Telecel Zimbabwe (Pvt) Ltd |
200002516 |
|||||
|
4 |
Blanket Mine (1983) (Pvt) Ltd |
200005489 |
44 |
Dairibord Zimbabwe (Pvt) Ltd |
200002472 |
|||||
|
5 |
Xin Yu Mining Corporation (Pvt) Ltd |
200086880 |
45 |
Cairns Foods (Pvt) Ltd |
200001266 |
|||||
|
6 |
Falcon Gold Zimbabwe (Pvt) Ltd |
200004871 |
46 |
Powerspeed electrical (Pvt) Ltd |
200001231 |
|||||
|
7 |
Well Mining (Pvt) Ltd |
200063486 |
47 |
Zimkings Trading (Pvt) Ltd |
200109847 |
|||||
|
8 |
Niarchos Investments (Pvt) Ltd |
200172519 |
48 |
Picktalk Investments (Pvt) Ltd |
200083717 |
|||||
|
9 |
Bulawayo Mining Company Ltd |
200135654 |
49 |
N Bhadella and Sons |
200001074 |
|||||
|
10 |
Goldfields of Shamva (Pvt) Ltd |
200135652 |
50 |
British American Tobacco Zimbabwe |
200000923 |
|||||
|
11 |
Goldfields of Shamva (Pvt) Ltd |
200135648 |
51 |
Schweppes Zimbabwe (Pvt) Ltd |
200002313 |
|||||
|
12 |
The King’s Daughter Mining Company (Pvt) Ltd |
200135651 |
52 |
Applebridge Investments (Pvt) Ltd |
200181725 |
|||||
|
13 |
Mimosa Mining Company (Pvt) Ltd |
200002575 |
53 |
Corundum Mining Company |
200029962 |
|||||
|
14 |
Murowa Diamonds (Pvt) Ltd |
200006188 |
54 |
Natural Stone Export Company |
200003307 |
|||||
|
15 |
Unki Mines (Pvt) Ltd |
200023164 |
55 |
RHA Tungsten (Pvt) Ltd |
200147126 |
|||||
|
16 |
Zimasco (Pvt) Ltd |
200002780 |
56 |
Zimbabwe German Graphite Mines |
200001444 |
|||||
|
18 |
Zimbabwe Platinum Mines (Pvt) Ltd |
200003122 |
57 |
Southern Granites( Pvt ) Ltd. |
200000638 |
|||||
|
19 |
RioZIM Limited |
200000204 |
58 |
Quarrying Enterprises (Pvt) Ltd |
200002191 |
|||||
|
20 |
Pan African Mining (Pvt) Ltd |
200005440 |
59 |
Newtron Mining ( Pvt) Ltd |
200080297 |
|||||
|
21 |
Forbes and Thompson (Pvt) Ltd |
200001460 |
60 |
Kadoma Magnesite (Pvt) Ltd |
200006427 |
|||||
|
22 |
Bikita Minerals (Pvt) Ltd |
200002810 |
61 |
Jin An Corporation (Pvt) Ltd |
200078190 |
|||||
|
23 |
Mohammed Musa Wholesalers (Pvt) Ltd |
200000977 |
62 |
Inducon Investments (Pvt) Ltd |
200127727 |
|||||
|
24 |
N. Richards and Company Masvingo |
200000597 |
63 |
Ilford Services (Pvt )Ltd |
200001952 |
|||||
|
25 |
TM Supermarkets P/L |
200000676 |
64 |
Innscor Distribution (Pvt )Ltd |
200000604 |
|||||
|
26 |
Ok Zimbabwe P/L |
200000192 |
65 |
Comox Trading (Pvt )Ltd |
200007380 |
|||||
|
27 |
Padenga Holdings Ltd |
200095242 |
66 |
Eagle Agencies (Pvt )Ltd |
200084638 |
|||||
|
28 |
Beta bricks P/L |
200000917 |
67 |
Tevason Investments (Pvt )Ltd t/a Freshpro |
200066312 |
|||||
|
29 |
Willdale (Pvt) Ltd |
200002508 |
68 |
Equip Solutions (Pvt )Ltd |
200153328 |
|||||
|
30 |
Lafarge Cement Ltd |
200000104 |
69 |
FMCG Distribution (Pvt ) Ltd |
200002081 |
|||||
|
31 |
PPC Zimbabwe Ltd |
200000840 |
70 |
Exclusive Brands (Pvt ) Ltd |
200123978 |
|||||
|
32 |
Blue Ribbon Foods (Pvt) Ltd |
200000088 |
71 |
Viative Trading (Pvt ) Ltd |
200005190 |
|||||
|
33 |
National Foods Ltd |
200062202 |
72 |
Bullred Farming |
200019187 |
|||||
|
34 |
Profeeds (Pvt) Ltd |
200065254 |
73 |
Brands Africa (Pvt ) Ltd |
200093781 |
|||||
|
35 |
Novatek Animal Feeds (Pvt) Ltd |
200120831 |
74 |
Brands Fresh (Pvt ) Ltd |
200164053 |
|||||
|
36 |
Parrogate Zimbabwe (Pvt) Ltd |
200028728 |
75 |
Aeromat [Cheeseman] (Pvt ) Ltd |
200048286 |
|||||
|
37 |
Zimbabwe Power Company |
200011622 |
76 |
The Cold Chain (Pvt ) Ltd |
200002320 |
|||||
|
38 |
ZESA Holdings |
200001442 |
77 |
Harrison & Hughson Agencies |
200002054 |
|||||
|
39 |
Zimbabwe Electricity Transmission and Distribution Company [ZETDC] |
200019701 |
78 |
Seedex Enterprises (Pvt ) Ltd |
200000214 |
|||||
|
40 |
Delta Beverages (Pvt) Ltd |
200000672 |
||||||||
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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