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Value Added Tax (VAT) registered suppliers and operators, making a taxable supply to a recipient, must provide that recipient within 30 days from the date of supply, a fiscal tax invoice?

What is a fiscal tax invoice?

A Fiscal Tax Invoice is a tax invoice printed from a fiscal device used by a VAT registered operator with the words ‘Fiscal Tax Invoice’ being on a prominent place, bearing all required features as detailed in Section 20 of the VAT Act.   

 What are the conditions of issuing a fiscal tax invoice?

  • Not more than 1 fiscal tax invoice shall be issued for each taxable supply;
  • Where the original fiscal tax invoice has been lost, replaced or reprinted, , the copy of the Fiscal Tax Invoice should be clearly marked “copy” on it.

What are the features of a fiscal tax invoice?

The fiscal Tax Invoice must contain the following features as required by Section 20 of the VAT Act as read with paragraph 23 of Finance Act number 7 of 2021:

  • The word “Fiscal Tax Invoice” in a prominent place
  • The name, address, VAT and Business Partner registration number of the supplier;
  • The name and address of the recipient and,
  • If the recipient is a registered operator, the VAT and Business Partner registration number of the recipient is required;
  • An individual serialised number and the date upon which the fiscal tax invoice is issued;
  • A description of the goods or services supplied;
  • The quantity or volume of the goods or services supplied;
  • The currency used in the transaction
  • Either-
  1. the value of the supply, the amount of tax charged and the consideration for the supply; or
  2. Where the amount of tax charged is calculated by applying the tax fraction to the consideration, the consideration for the supply and either the amount of the tax charged, or a statement that it includes a charge in respect of the tax and the rate at which the tax was charged.

What are the requirements of claiming VAT Input Tax?

With effect from 1 January 2022 VAT registered operators can only claim input tax on valid Fiscal Tax Invoices printed from a fiscal device with words ‘Fiscal Tax Invoice’ in a prominent place and other features  as highlighted above. For the input tax to be allowed as a deduction, a fiscal tax invoice has to be held by a registered operator within the period a return is required to be furnished or 12 months whichever is the longer period.

What are the requirements of claiming expenditure for Income tax purposes on supplies subject to VAT?

 

With effect from year of assessment beginning 1 January 2023, only a fiscal tax invoice shall be submitted as proof of any expenditure qualifying  as deduction for supply of goods or services subject to VAT.

My Taxes, My Duties: Building my Zimbabwe!!

 

Disclaimer

This article was compiled by the Zimbabwe Revenue Authority (ZIMRA) 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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