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. 

By Prudence J. Mangisi and Melody Chitukutuku

Vic Falls/ Kazungula/ Hwange sub region raised high the flag of the ZIMRA Corporate Social Responsibility (CSR) porogrmmes during Q1 when they chipped in to assist Holton Mpala, a student at Ndlovu Secondary School with over USD400.00, towards payment of his medical bills.

The sub region raised funds for the medical expenses of Holton Mpala’s specialised/ computerised object removal operation through individual donations of staff members to get a foreign object (needle) removal operation in Zambia

Mpala a form 4 student, was pricked by a needle on his left hand. Three local hospitals in Bulawayo attempted to retrieve the needle with a manual operation which was not successful.

A computerised object removal operation was suggested amid dysfunctional local hospital equipment leaving Hilton’s grandparents with the only option of going to Zambia for the operation.  

ZIMRA Management and Staff in the region assisted after having been moved by the plight of the young student of Ndlovu school in Victoria Falls rural as his grandparents are over sixty years and unemployed and had exhausted all their savings on his medication in Bulawayo.

The timely Vic Falls/ Kazungula/ Hwange sub region came in handy and the amount donated covered Mpala’s X-ray, operation, bandages, tablets, transport and accommodation for him and his grandmother to and from Zambia.

“We make a living by what we get, but we make a life by what we give.”

Winston Churchill

By Chenayi Mack-Maponga

“We decided to focus on your food needs by bringing grocery items to 18 Homes. We are grateful to handover these groceries and blankets to Jairos Jiri Southerton, Shungudzevana Children’s Trust and Bumhudzo Old People’s Home in Chitungwiza. Other Homes will be celebrated in a similar fashion through or regions around Zimbabwe, said Mr Toringepi.”

Other Homes set to benefit from this gesture from ZIMRA include Jairos Jiri in Rusape, Alpha Cottages and Mucheke Old People’s Home in Masvingo, Chiredzi Christian Children’s village, Rugare Old People’s Home and Mary Ward Children’s Home in Kwekwe, King George VI Children’s Rehabilitation Centre,  Entembeni Old People’s Home and Enthandweni Old People’s Home in Bulawayo, Midlands Children’s Home in Gweru, Zororai Old People’s Home and Daisy Dube Trust in Mutare, Mazowe Old People’s Home in Rushinga, Hurungwe Children’s Home in  Karoi and  Dete Old Age Home Association in Hwange.

Over the years, ZIMRA has received overwhelming support from the corporate world through the annual Charity Ball and other fundraising initiatives since 2004 to assist vulnerable institutions.

Don’t miss out! Invitation to another webinar on Rules of origin and the EU-ESA-EPA, A guide for Zimbabwe businesses. Tuesday 4 April 2023 1000 to 1230.

To access event click  

https://us06web.zoom.us/j/6037320336?pwd=eVNVSDQ2QnFFN3R5NFo3S1QwWmUvZz09

Meeting ID: 603 732 0336

Passcode: sa60np

The US$300 million Beitbridge Border Post upgrade is taking shape, with the freight terminal expected to be up and running by the end of September 2021. The freight terminal will constitute phase one of the border upgrade and will be used predominantly by commercial vehicles crossing into and out of Zimbabwe.

Acting Zimbabwe Revenue Authority (ZIMRA) Commissioner General, Mr Rameck Masaire, joined the Minister of Finance – Honourable Mthuli Ncube on 26 February 2021 on a tour to assess progress made so far in upgrading Africa’s busiest border post. The touring party was made up of the Resident Minister for Matabeleland South, Honourable Abednico Ncube, members of the Immigration Department, Vehicle Inspection Department (VID) and other government partners and stakeholders.

During the tour, the team was taken to various sites, where excavations have already been done. In some areas, foundations have already been laid, while other buildings are at various levels of development. It is expected that the whole border upgrade should be done by the fourth quarter of 2022.

Speaking during the tour, Honourable Mthuli Ncube applauded the government for sinking in such a huge investment in Beitbridge, which is expected to transform not only the lives of cross border travellers, but also the general outlook of the border town of Beitbridge. He also expressed his appreciation of the progress made so far with regards to the project, saying this was a welcome move which shows the contractor’s commitment to a successful public-private partnership between the Zimbabwe government and the contractor – ZimBorders.

Once the project has been completed, it is expected to improve the county’s rating on the ease of doing business, since there would be orderly movement of both cargo and vehicular traffic at the border post.

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ATAF Executive Secretary Mr Logan Wort and ATAF Chairman and Commissioner General for Togolais Des Recettes (OTR) Mr Philippe Tchodie, follow proceedings during the ATAF General Assembly in Lagos, Nigeria

A clarion call was made for tax administrations to be state builders and also revenue collectors through improved service delivery, elimination of corruption, transparency and accountability in order to create and retain trust from both the government and taxpayers. 

This was made at the ongoing 7^th African Tax Administration Forum (ATAF) General Assembly which is being held in collaboration with Nigeria’s Federal Inland Revenue Services (FIRS) in Lagos.

Deliberations at the conference centred around the social contract that exists between governments and taxpayers, where governments are expected to improve the lives of its people through provision of social services such as health care, infrastructure and education which influences taxpayer compliance.

In his opening remarks, ATAF Executive Secretary, Mr Logan Wort, said that the pressure of revenue to provide development in African states is increasing due to global shocks.

“The 7^th ATAF General Assembly is taking place under the effects on Covid 19, rising inflation, rising interest rates and the impact of Ukraine-Russian war, global warming and climate change which have all negatively impacted on the lives of people. The challenge of revenue administration is immense as the pressure on revenue to provide resources necessary for redistribution falls on revenue collectors’ shoulders. The ability for governments to provide social services will be jeopardised if we don’t address these challenges”, he said.

Mr Wort said that ATAF focusses on improving domestic revenue mobilisation to build resilience against these global shocks and deliberations at the General Assembly will bring both the challenges and possible solutions to the fore to help design relevant solutions and policies for African governments.

The Zimbabwe Revenue Authority Commissioner General Regina Chinamasa moderated the session on Tax as a Social Contract and Civic Duty – Managing Taxpayers’ Perception. She explored the interplay that exists between African Governments’ provision of public service and tax payment morale.

The Zimbabwe Revenue Authority Commissioner General Regina Chinamasa

“The social contract impacts tax morale and promotes apathy including the numerous factors such as lack of accountability that contribute to the breach in the social contract… The state is tasked with providing public goods, and in return, citizens willingly cede liberty and taxes to the state. In theory, the bilateral nature of this contract is self-reinforcing. On the one hand, the state cannot provide public goods such as security, education, and health services without sufficient tax revenue”, she said.

The 7^th ATAF General Assembly, running from 31 October 2022 to 4 November 2022, is being held under the theme Rethinking Revenue Strategies: The Human Face of Taxation.  The event is being attended by heads and senior officials of African Tax Administrations and Ministries of Finance, representatives of international and continental organisations and development partners, as well as those from the private sector and academic institutions working in the tax arena from the 41 ATAF member countries.

ZIMRA has been a member of ATAF since the establishment of the body in 2009, and has benefited from a variety of ATAF’s capacity building and technical assistance programmes ranging from Transfer Pricing, Revenue Forecasting, Auditing of extractive, agro-processing and financial sectors.

The Zimbabwe Revenue Authority (ZIMRA) is aware that due to the positioning of our offices, inland and border stations, there is a need to remain vigilant in observing and practicing procedures that reduce the high risk of exposure to COVID-19.

In the interest of safeguarding employees, clients and the public as directed by the guidelines from the World Health Organisation, the Ministry of Health and Childcare, ZIMRA is implementing measures to mitigate the likely impact and risks of this viral threat to operations and human life.

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The ZIMRA Change Management programme started full throttle with a high-level workshop, which took place at a hotel in Juliusdale from 20 October to 24 October 2019.

Among those who attended the workshop were the ZIMRA Director of Strategy Mr Joey Shumbamhini, the ZIMRA Change Management Programme Chairperson Mr Batsirai Chadzingwa, and a whole host of managers from different divisions and Regions. This team has been selected as the lead agents of the ZIMRA Change Management, which is expected to breathe fresh air in the way that the Authority conducts its business.

The ZIMRA Change Management has ten main objectives, which include elimination of fear and foster innovation within the Authority. The other main objective is to eliminate silos and foster a culture of teamwork within ZIMRA. Another major objective of the change management programme is to increase staff and client satisfaction and to strengthen the ZIMRA image through a robust rebranding exercise.

“As an organisation, we are basically changing so that we achieve our strategic goals as enunciated in our five year strategic plan. As ZIMRA, we are changing three things, mainly the organisation, the people the processes and systems,” said Mr Joey Shumbamhini, the Director of Research and Strategy in the Zimbabwe Revenue Authority. 

Mr Shumbamhini highlighted that some of the major take aways from last week’s workshop included lack of effective communication among divisions, low staff morale, culture of fear within the Authority and a general lack of trust among ZIMRA personnel.

“To this effect, change management is coming in to correct and rectify some of these glaring shortcomings which have a potential to undermine the successful execution of our mandate as an organisation,” said Mr Shumbamhini.

ZIMRA is embarking on a robust change management programme, which shall see a drastic transformation of the way the Authority conducts its business. The change management programme is part of the Authority’s 5-year strategy, which runs from 2019 to 2023.  

Teams conduct building exercises

Attendees follow proceedings as the consultant during the Change Management Workshop