Customs – Business Relationship

In line with international best practice and the Customs and Excise Act [Chapter 23:02] section 216B, Zimbabwe has implemented the Authorized Economic Operator (AEO) programme.

1. Authorized Economic Operator (AEO)

• AEO is a programme under the World Customs Organization (WCO) SAFE Framework of Standards to secure and enhance international supply chain security and facilitate movement of legitimate goods across international borders.
• An AEO may defined as a party involved in the international movement of goods in whatever function that has been approved by or on behalf of a national Customs Administration as complying with WCO or equivalent supply chain security standards. AEO include inter-alia manufacturers, importers, exporters, brokers, carriers, consolidators, intermediaries, ports, airports, terminal operators, integrated operators, warehouses, distributors. The facility is open to all stakeholders in this supply chain.

1. ZIMRA AEO Programme

• Administered by Customs and Excise Division, the AEO Programme is a voluntary programme open to all business entities that participate in the global supply chain.
• Business entities that meet pre-determined compliance standards are accredited as AEOs and as such enjoy appropriate facilitation on Customs clearance.

1. Benefits of AEO Programme

• Faster movement of cargo through the Border/Port of entry
• Simplified Customs formalities
• Fewer physical and document-based controls
• Reduced demurrage and other related costs
• Priority treatment in query resolution
• Choice of the place for physical examination
• Facilitation for movement of cargo during periods of trade disruptions
• Improved relations with ZIMRA
• Promotes an AEO accredited entity as a secure and reliable trade partner thereby improving business competitiveness.
• Mutual recognition of AEO authorizations between Customs authorities as a long term benefit.
• Provides businesses with internationally recognized security standards.
• The opportunity to self-assess allows entity to have a full insight into its operations and business practices, identify and strengthen any security or compliance related weaknesses

1. Qualification Criteria

Any entity interested in getting benefits of the AEO programme shall apply in writing to the Commissioner of Customs & Excise for accreditation. The entity must meet the following conditions:

• Be established in Zimbabwe;
• Have appropriate record of compliance with Customs and other relevant laws;
• Have a satisfactory system of managing commercial and, where appropriate, transport records;
• Have proven financial solvency; and
• Ensure that there is general maintenance of approved security and safety standards at both the entity`s place of operations as well as its business systems and procedures.

1. AEO Application Process

• Consultation with nearest ZIMRA office on AEO application procedure
• Completion of and submission of self-assessment questionnaire, application form and other relevant attachments required for the granting of AEO status
• Examination of application by ZIMRA
• Onsite inspection by ZIMRA
• AEO authorization

1. Obligations of an AEO

The AEO is required to;

• Keep proper records it terms of Section 223 of the Customs & Excise Act [Chapter 23:02].
• Maintain an accounting system which is in accordance with the Generally Accepted Accounting Practices (GAAP) and which facilitates audit based customs control.
• Ensure that its staff members conduct business in accordance with the procedures of the Customs & Excise Act and any other Act administered by ZIMRA or any instructions given by the Commissioner of Customs & Excise.
• Ensure a relationship of good faith is maintained by its staff at all times in dealing with the ZIMRA.
• Allow ZIMRA officers physical and electronic access to the information and documents as provided for in terms of Section 223 of the Customs & Excise Act.
• Use compatible E-Systems for Customs procedures and commit to regularly upgrade the systems.
• Ensure that its premises are in conformity with the appropriate security and safety standards.

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. 

Q: What is the new ZIMRA initiative being introduced?

A: The Zimbabwe Revenue Authority (ZIMRA) is leveraging ZIMRA to excellence in service by introducing a high quality, cost effective, interactive communication channel between ZIMRA and its valued clients in tandem with set statutory obligations.  ZIMRA is introducing a Contact Centre, which is expected to improve service delivery by opening up communication channels between the Authority and its clients.

Q: What is a Contact Centre

A single point of contact for all communication where queries, enquiries and feedback may be channeled and handled through various client touch points like social media, email, calls, mail, SMS among others.

Q: Why has the Contact Centre been introduced now?

A: The revenue collector has decided to add the contact centre to its already existing communication channels as part of its much wider Business Process Re-engineering (BPR), which is looking at reinvigorating and introducing improved processes.

Most of the BPR processes that have been revamped or reviewed have typically come with technological solutions. The contact centre project has been the result of wide consultations internally and externally to ensure that the system adheres to international best practice.  ZIMRA has deliberately put Customer Centricity as its core focus in recent months and the contact centre adds to the already existing effort to improve service.

Q: What is the Contact Centre’s promise?

A: Get in touch with our vibrant Contact Centre team and we promise to serve you through fast responses, ensuring resolution of your queries in a courteous manner.

Q: What are the Contact Centre Operational times?

A: Currently the Contact Centre is operating between 8am-5pm with agents attending to customer queries.

Q: How can I access the contact Centre?

A:       Contact Centre phone number: 08688007614

          Email: This email address is being protected from spambots. You need JavaScript enabled to view it.

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. 

In an effort to reduce the compliance costs associated with submission of returns and as a mitigating measure against technical challenges being faced by taxpayers, especially with the E-Services online filing platform, the Authority has launched another online filing platform called E- Taxes.  E-Taxes is similar to E-services but with minor differences on the registrations process and functions.

What are the functions of E-Taxes?

• Submission of Returns
• Viewing Returns Submitted
• Viewing Compliance Status

What is the registration process for E-Taxes?

• Go to any browser and type the following URL to access the e-Taxes system https://etaxes.zimra.co.zw
• Click on the Sign Up link – at the bottom right corner of the page.
• On the pages that comes up, click the drop down menu/arrow and select” I have a BP number”. The assumption is that you already have a BP number. Write you BP number, starting with a zero and write the email address that is registered with ZIMRA. Click submit.
• Another page comes up which requests information for your profile, like first name, surname, phone number and password. Click Submit.
• Once the details are submitted, an email to activate your account is sent to the email address used to register.
• Log into your email and click on the activation link sent from Customer Services to activate the account. Please note that the activation link expires within the timeframe mentioned in your email.
• After clicking the activation link, a pop up screen comes up which indicates whether or not the activation was successful. Click on “Go to Login Page” link to access the login page. Log into E-Taxes using BP number and email address used to register for E-Taxes.

Please note that the entire sign up process is a once-off process. Once the process is completed, every other time you will just login and use the system to make your submissions. Moreover, even if the taxpayer has both the ZWL BP and the FOREX BP, registration for E-Taxes is done once with one BP (ZWL BP) and the same E-Taxes account registered can be used to file returns for both BPs. The taxpayer just has to pick the currency that relates to the type of BP for which the return is being submitted.

How do you submit returns on E-Taxes?

• Click on the tab or link labelled Submit Tax Returns and select the appropriate tax head for which you need to make a submission.
• Select and click on the tax head for which you intend to make a submission for.
• Drop down on currency and pick currency that relates to/is appropriate depending on the BP for which the return is being submitted. Fill in the appropriate fields and complete the submission of the return by clicking the submit button. Once a notification that the submission was successful comes out, there is no need to re-submit the return again.

How do you view submitted returns?

• Click on the tab or link labelled Tax Submission History
• Select the return to be viewed
• Click view and the return captured is displayed.

How do you check compliance status (outstanding issues)?

Click on the tab or link labelled Tax Clearance Certificate and click on Tax Clearance icon to view the taxpayer’s status

Please note that one cannot apply for a Tax Clearance on the E-Taxes platform.

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.

To contact ZIMRA:

 www. zimra.co.zw@Zimra_1

 ZIMRA.ZW

 This email address is being protected from spambots. You need JavaScript enabled to view it./webmaster@zimra.co.zw

0242 –758891/5; 790813; 790814; 781345; 751624; 752731

+263 0782729862

e-TIP  http://ecustoms.zimra.co.zw/etip

Clients are advised that Section 192 of the Customs and Excise Act Chapter 23.02 states that a notice of embargo is issued to secure goods that have passed out of customs control.

In what circumstance can an embargo be issued:

• When a tourist, who would have temporarily imported a private vehicle on TIP intends to exit the country by other means leaving the vehicle in Zimbabwe or,
• When a motor vehicle which would have been temporarily imported into Zimbabwe break down and needs to be repaired or,
• When an imported consignment is suspected of not having paid customs duty in full legally due or
• Agricultural products imported without complying with the import permit requirements as regulated by the Ministry of Agriculture.

What  is expected of a Tourist leaving their vehicle on TIP behind

A tourist whose vehicle was imported on TIP for use during their stay in Zimbabwe, and intends to leave the vehicle in Zimbabwe for whatever reason, should report to the nearest ZIMRA office before the TIP expires or before leaving the country. Goods or vehicles put on embargo should not be moved unless authority to do so is granted by ZIMRA.

For issuance of an embargo for vehicles, the tourist should have a valid TIP, vehicle registration book and a valid passport. The vehicle should be kept at the location on which it was issued with an embargo.  It is the full responsibility of the individual to whom the embargo is issued to observe and comply with the terms of the embargo.

In the case of imported goods, where containers or goods have been moved to a place indicated by an officer in terms of Section 41 the Customs and Excise Act or embargoed for purposes of examination, they shall not be removed from that place, nor be opened or have any seals broken or interfered with or dealt with in any way without the permission of an officer.

Tourists and travellers are therefore encouraged to be conversant with the aforementioned provisions in order to ensure that they act within the confines of the law where they experience breakdowns or accidents. Failure to do so will result in payment of fines and penalties.

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. 

What is an ITF263?

An ITF 263 is a Tax Clearance Certificate issued by the Commissioner General of the Zimbabwe Revenue Authority (ZIMRA), to a person liable to pay tax, provided that the taxpayer’s tax position is satisfactory.

What is the Purpose of a tax clearance certificate?

Tax clearance certificate enhances business compliance profile as the taxpayer deals with other businesses.

What are the benefits of having a valid Tax Clearance Certificate?

• No 30% Withholding Tax is deducted when payments are made for goods and services supplied.
• No Presumptive Tax will be levied on importations.
• Tax clearance is required when bidding for tenders.
• A Tax Clearance Certificate is a pre-requisite when applying for licenses issued by local authorities.
• Business counterparts have confidence in doing business with compliant taxpayers.

 What is required to obtain a Tax Clearance Certificate?

• Taxpayer should have registered with ZIMRA in terms of Section 42, of the Income Tax Act.
• The taxpayer must be up to date with all statutory returns required to be submitted under all Acts administered by ZIMRA, for the tax heads the taxpayer is registered for.
• The taxpayer must be up to date with all the payments in terms of all the Acts administered by ZIMRA.
• Taxpayers with outstanding tax obligations must approach ZIMRA for approved arrangements before making the application
• Taxpayers should ensure that their master data information is correct and up to date. Master data includes the following Physical Address, Email Address, Telephone Number, Bank Accounts and Industry Classification. Where email addresses being used are not the ones that are in the database, kindly fill in Rev 2 form obtainable from the ZIMRA website.
• Taxpayers registered for Value Added Tax (VAT), should ensure that they are fully interfaced for multi-currency with their invoice/ receipts showing the currency of transaction.

How does one access a Tax Clearance Certificate?

The Tax Clearance Certificate is auto-generated by the ZIMRA system to compliant clients only and thereafter, sent through email addresses that are captured in the ZIMRA database. Compliant clients are no longer required to apply for a tax clearance.

What is the validity period of a tax clearance certificate?

Tax clearances certificates for taxpayers classified as LCO and MCO clients expire on 31st December each year, while the rest of the tax clearances expire 12 months from date of issue. 

How much is charged to obtain a valid Tax clearance certificate?

There is no fee that is charged for the issuance of the Tax Clearance Certificates. Taxpayers are therefore, encouraged to report to the Police or ZIMRA offices any incidents of payments purported to be for ZIMRA or ZIMRA staff to obtain the Tax Clearance Certificate.

How do we deal with ITF263 related enquiries?

For any ITF263 related enquiries, taxpayers should use the following email addresses:

• Large Client Office (LCO) – This email address is being protected from spambots. You need JavaScript enabled to view it.
• Medium Clients Office (MCO) – This email address is being protected from spambots. You need JavaScript enabled to view it.
• Small Clients Office (SCO) – This email address is being protected from spambots. You need JavaScript enabled to view it.
• Region 2 – This email address is being protected from spambots. You need JavaScript enabled to view it.
• Region 3 – This email address is being protected from spambots. You need JavaScript enabled to view it.

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. 

Who is a clearing agent?

A clearing agent is a person who, for gain, acts for an importer, exporter, manufacturer or the holder of a license; or holds himself out as carrying on the business of acting for importers, exporters, manufacturers or holders of licences; in performing any function under, or complying with any requirement of the Customs and Excise Act.

Clearing agents are companies or partnerships, which are licensed by ZIMRA to operate in Zimbabwe. The clearing agents’ license expires on 31 December of the year for which it was issued, and should be renewed if one wishes to continue operating. For a license to be renewed, submission of electronic application for renewal should be done on or before the 31^st of October. The F64 is now lodged online in the ASYCUDA syste .

What is required to be licensed as a clearing agent?

Any person who wishes to be licensed as a clearing agent shall submit an application in form No. 64 (fully completed and signed including telephone numbers and e-mail details) and furnish the following particulars or documents:

• the name under which the clearing agent will operate and the address of its principal office in Zimbabwe;
• where the applicant:
  1. is a company, certified copies of the certificate of incorporation under the Companies Act [Chapter 24:03], and of the memorandum and articles of association of the company, together with the names of all shareholders and the directors of the company;
  2. is a partnership a certified copy of the partnership agreement, together with the names of all the partners;
• evidence that the clearing agent has the necessary resources to conduct customs business;
• CR14 if there is change on directors
• finger prints for employees and directors duly vetted by Police once every three years
• Curriculum vitae and certified academic and professional certificates for employees authorised to lodge entries with ZIMRA (employees should have received formal customs clearance training and have a minimum of one (1) year experience.
• Current bank statement
• Confirmation Letter from a recognized clearing agent association
• Lease agreement / proof of ownership of premises
• Balance sheet and detailed asset register for previous financial year
• Submit any additional details of your countrywide office network and/or Agent to Agent Agreements for the ports you do not have offices.
• NSSA clearance certificate.

If the Commissioner approves the application he shall call upon the applicant to enter into a bond, with sufficient surety for the due observance of all relevant provisions of the Customs and Excise Act. A license shall be issued after registration of the bond and payment of the prescribed annual license fee.

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. 

Persons in trade are encouraged to utilise the ZIMRA e-services portal to register with ZIMRA online by following the steps below:

Step 1: Application for E-Services Account

• Type the address http://efiling.zimra.co.zw on your internet browser
• Click Register
• Complete the details of the company / organisation on the form provided
• Click on “Submit” and an email is immediately sent to your e-mail address.
• Open the message in your e-mail and click on the URL. This completes the registration process.

Step 2: Online BP Registration

• Type the address http://efiling.zimra.co.zw on the internet browser
• Click Login
• Enter you Username and Password
• Click Sign In
• Click “I do not have a Business Partner Number”
• Complete all the required information in the following way:

Under the heading Profile Details, complete the details of the organization

• Click the heading Directors in order to capture the details of the directors

Do the following to add a director

• Click Add
• Complete the details of the director
• Click Save
• If the director already has a BP Number, click Search, type the BP number of the director, click Search
• Repeat the process if adding several directors

• Click the heading Shareholders in order to capture the details of the shareholders

Do the following to add a shareholder

• Click Add
• Complete the details of the shareholder
• Click Save
• If the shareholder already has a BP Number, click Search, type the BP number of the shareholder, click Search, Click Save

Repeat the process if adding several shareholders

• Click the heading Bank Details in order to capture the details of the bank details

Do the following to add details of a bank

• Click Add
• Complete the details of the bank
• Click Save

Repeat the process if adding several banks

• Click the heading Other Details in order to capture the details of the Tax Consultant, Representatives / Public Officers, and Branches

Do the following to add a Tax Consultants, Representatives / Public Officers

• Click Add
• Complete the details
• Click Save
• If the Tax Consultant, Representative / Public Officer already has a BP Number, click Search, type the BP number of the shareholder, click Search, click Save

• Click “Next” at the bottom of the page, to go to the tab for attachments.
• On “Select the document to upload”, click Browse to select your document. Note that the attachments must be in scanned format.
• On “Select type of document to upload”, drop down to select the type of document
• Click Upload Selected File

Repeat the process if you are attaching several documents.

• Click “Next” at the bottom of the page.
• Complete the details on the Finish tab
• Click Submit

Watch for feedback in your e-mail. You will get your BP Number online.

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. 

WHAT ARE PROSPECTING EXPENSES?

Prospecting expenses are expenditure incurred by a miner (other than that which is allowable under the general deduction formula) on operations, either in search of mining claims or for minerals after a mining claim has been pegged. Such expenditure is allowable in the year of assessment in which it is incurred and, in the absence of income from such operations, such expenditure may be set off against other income from trade or investment.

ARE PROSPECTING EXPENSES ALLOWABLE AS A DEDUCTION?

Prospecting expenses are an allowable deduction according to section 15(2) (f) (ii) of the Income Tax Act.

WHAT ARE THE CONDITIONS OF CARRYING FORWARD PROSPECTING EXPENSES?

A prospector who later intends to eventually carry on mining operations may elect that prospecting expenditure incurred be carried forward and be allowed only against income from mining operations. If mining operations were to fail to materialize, deductibility of the prospecting expenditure would have been lost. The election is binding for any year of assessment for which it is made but not for any subsequent year.

WHICH EXPENDITURE IS ALLOWABLE UNDER SECTION 15(2) (f) (ii)?

The expenditure may take the form of surveys, sinking of boreholes, digging of trenches and pits, and other prospecting and exploratory works undertaken for the purposes of acquiring rights to mine minerals or incurred on a mining location in Zimbabwe. This section excludes expenditure allowable as a deduction under Section 15(2) (f) (i).

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. 

Fiscalisation refers to the use of approved fiscal devices to record taxable sales transactions and other tax information on the read-only fiscal memory at the time of sale for use by the Zimbabwe Revenue Authority (ZIMRA) in Value Added Tax (VAT) administration. The fiscalised gadget records information on read only memory, meaning that once recorded, it cannot be altered. Registered operators who fiscalise must also ensure that the fiscal devices are interfaced with ZIMRA servers for the purposes of transmitting information to ZIMRA.

Who is supposed to Fiscalise?

All Value Added Tax (VAT) registered operators in categories A, B, C and D are required to fiscalise and interface the fiscal devices as outlined in SI 104 of 2010 as read with SI 148 of 2016 and SI 153 of 2016.

How do I know the correct type of fiscal device to use?

There are three (3) categories of Fiscal Devices and their suitability varies as follows:

What are the obligations of a registered operator?

• To acquire appropriate devices from approved suppliers
• To submit the Fiscal device registration form (Form FRT1) to the suppliers of the fiscal device for registration. The form can be obtained or accessed from any ZIMRA office or from the approved suppliers, or the ZIMRA website (www.ZIMRA.co.zw).
• To integrate systems to the fiscal device
• To ensure there is back-up power supply capable of lasting at least eight hours from the time the power supply ceases
• To liaise with the supplier on installation and configuration of the devices onto the system and interfacing with the ZIMRA server
• To ensure tax rates configured into the system are correct
• To print test Z-Report indicating that the device is now in fiscal mode
• To confirm with ZIMRA that the device is working and ready to record tax information
• To liaise with ZIMRA on the sealing of device indicating that the device is ready for use
• To record all sales using the device once it has been fiscalised and not to use any alternative systems without the approval of ZIMRA
• To prepare daily, monthly and annual reports of sales and VAT
• To keep a record of the servicing of the device
• To ensure that no other person uses the fiscalised device which has been registered under your BP Number
• To report all faults to ZIMRA promptly and no later than eight hours from the time of occurrence and get reference numbers for all faults reported
• To ensure that any breaking of the seal is approved and always done in the presence of ZIMRA personnel.
• Issue customers with invoices and receipts for business transactions done reflecting the correct currency of transaction
• Ensure that the Fiscal Tax invoice/receipt display the correct description of goods, correct amount tendered and correct currency tendered
• Where the registered operators issue discounts to their customers in either ZWL$ or foreign currency, they must issue credit and or debit notes to correctly record the changes in currency of trade
• To remit taxes in the currency of transaction according to Section 4A of the Finance Act (Chapter 23:04) and Section 38 [4] and Sec 38[4] [a] of the VAT Act [Chapter 23.12)

NB: If a device is going to be out of use for more than eight hours due to interruption in power supply, theft, technical fault or any other similar reason, the registered operator is required to report to ZIMRA promptly and within eight hours and receive an error report number from ZIMRA. If the fault occurred outside the operating hours of the registered operator, public holiday or weekend, the registered operator must notify the Zimbabwe Revenue Authority no later than 8am of the following working day.

Members of the public are therefore encouraged to report all cases where the registered operators are not issuing receipts/invoices displaying correct details on the receipts. They can contact ZIMRA Audits, Risk and Compliance team on the following ZIMRA Hotlines 08004423 or 0242-770884.

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.