X hits on this document





180 / 188



A registered operator may be deregistered if:

  • the value of his taxable supplies falls below the registration threshold;

  • he ceases to carry on any trade and will not carry on any trade during the next 12 months;

  • he has applied for registration in anticipation of commencing a trade and has not commenced that trade; or

  • he has successfully applied for voluntary registration and it subsequently appears that he has not complied with the requirements.

Cancellation of registration, with the approval of the ZIMRA, will take effect from the last day of the tax period during which the Commissioner is satisfied with the trader’s eligibility for deregistration or such later date as may be determined by the Commissioner.

Output tax

Advertising and prices

In all advertisements or quotations, all prices are to be stated on a VAT- inclusive basis. Where this is not stated, the price is deemed to be the VAT-inclusive price.

Calculation of output tax

Output tax is calculated by applying 15% to the value of a taxable supply. Where the supplier has not specified whether VAT has been included, the tax fraction of 15/115 is applied to the amount deemed to be consideration for the supply.



Exemptions and zero rating

Exempt supplies

Supplies that are exempt from VAT, in respect of which the supplier may not make any input tax deductions, include:

  • financial services (excluding financial services charged at 0%);

  • donated goods or services supplied by an association not for gain;

  • residential accommodation in a dwelling;

  • leasehold land used to erect dwellings, and for existing dwellings;

  • letting of land outside Zimbabwe;

  • transport by public road or railway of fare-paying passengers and their luggage;

  • educational services;

  • medical services;

  • membership contributions paid to an employee organisation; and

  • piped water, rates charged by a local authority and electricity charges for supplies made for domestic purposes.

Zero rated supplies

Supplies that are zero-rated, in respect of which the supplier may deduct input tax, include supplies of the following goods or services:

  • goods (including consumables) supplied to repair goods temporarily admitted into Zimbabwe;

  • goods supplied under a rental agreement if used exclusively outside Zimbabwe;

  • goods supplied under a rental agreement if used in or paid for from outside Zimbabwe – this zero rating only applies to foreign- registered businesses;

  • business supplied as a going concern;

  • gold supplied to the Reserve Bank or a registered bank;

  • regular inputs supplied to farmers for farming, e.g. herbicides, fodder and insecticide;

  • certain basic foodstuffs e.g. milk, raw meat and bread;

  • goods for disabled persons;

  • goods supplied to an independent branch in an export country;

  • gold coins issued by the Reserve Bank;

  • drugs as defined in the Medicines and Allied Substances Control Act;

  • international transportation of passengers or goods;

  • transportation of passengers from one place to another place in Zimbabwe by aircraft to the extent that the travel constitutes ‘international carriage’;

  • transportation and ancillary transport services supplied within Zimbabwe in respect of imports and exports of goods, if supplied by the same supplier responsible for the international transport of those goods;

  • insuring and arranging of the transport and arranging of insurance of passengers or goods in respect of international transport;

  • transportation services for the movement of goods through Zimbabwe from one export country to another, when provided to a nonresident (nonregistered operator), who does not carry on a business in Zimbabwe;

  • services in connection with land or improvements outside Zimbabwe;

  • services in connection with movables situated outside Zimbabwe or goods temporarily

Document info
Document views966
Page views966
Page last viewedMon Jan 23 21:25:20 UTC 2017