VAT GUIDE 2nd Edition

7/30/2019 VAT GUIDE 2nd Edition

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[2007 2nd Edition]

ZIMRA VAT GUIDE

INDEX

FOREWORD....3

SOME IMPORTANT TERMS.3

CHAPTER 1 WHAT IS VAT...4

CHAPTER 1 HOW VAT WORKS...4

CHAPTER 2 HOW TO REGISTER YOUR BUSINESS -...........5

CHAPTER 3 TAX PERIODS....7

CHAPTER 4 ACCOUNTING FOR VAT.....8

CHAPTER 5 TAXABLE AND EXEMPT SUPPLIES......9

CHAPTER 6 INPUT TAX CREDIT....10

CHAPTER 7 TAX INVOICE...12

CHAPTER 8 CALCULATION OF VAT AND PRICING..16

CHAPTER 9 RECORDS TO BE MAINTAINED...18

CHAPTER 10 VAT ON IMPORTS AND EXPORTS...19

CHAPTER 11 OBJECTIONS AND APPEALS.....20

CHAPTER 12 INSPECTION VISITS AND ASSISTANCE.... 21

ZIMBABWE REVENUE AUTHORITY OFFICES22

ANNEX 1 VAT 7 RETURN...........24


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FOREWORD

This booklet is a basic guide only and is based on the Value Added Tax Act [Chapter 23:12].Kindly note that technical and legal terminology has been avoided for simplicitys sake. It isalso important to note that this guide does not substitute the Value Added Tax Act. Shouldthere be aspects relating to VAT which are not clear or covered in this guide, or should yourequire information on a legal issue or specific decision, you may address your enquiry inwriting to your local Zimbabwe Revenue Authority (ZIMRA) office.

SOME IMPORTANT TERMS

Commissionermeans Commissioner General of the Zimbabwe Revenue Authority.

Trademeans any activity or business which is carried on continuously or regularly in orpartly in Zimbabwe by any person of which goods or services are supplied for aconsideration, whether or not for profit.

Exempt supplies means supplies which are immune from VAT in terms of Section 11 ofthe VAT Act.

Input Tax is the tax a registered operator is charged on goods or services acquired orimported for the purposes of making taxable supplies.

Output Tax is the tax charged by a registered operator on the supply of taxable goods orservices

Consideration includes any payment made or to be made for a supply of goods and

services made by the registered operator

Zero-rated suppliesmeans supplies of goods or services where the rate of 0% is applied.

Standard-rated suppliesmeans supplies of goods or services where the rate of 15% isapplied.

Taxable supplymeans supplies of goods or services taxed at the rate of 0%, 15% and thespecial rate of 22.5%.

VAT Return is the form used to declare the value of supplies, output and input tax of aregistered operator to the Commissioner.

Registered Operator means any person who has registered or is required to register forVAT purposes.


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CHAPTER 1

WHAT IS VAT?

VAT is an indirect tax which is levied on:

local supplies of goods and, or services made by a registered operator;

Goods imported into Zimbabwe.It is collected at each stage of production, distribution and importation.Consideration is one of the most important definitions for charging VAT; the importance ofthis definition is that any payment received should be in respect of the supply of either goods

or services. Where a person donates or gives any amount of money to someone withoutreceiving anything in return, there will be no VAT implications on such donations.

Trade is another important definition as it determines whether or not a person should beregistered for VAT purposes.

The following requirements must be met for one to be deemed to be carrying on trade:

The activities must be carried on continuously or regularly.

The business activities must be carried on in Zimbabwe or partly in Zimbabwe. The goods or services must be supplied to other persons for a consideration.

The following activities shall not be regarded as trade for VAT purposes:

Services supplied by an employee to an employer for which remuneration received issubject to Pay As You Earn (PAYE)

The activities of a branch permanently located outside Zimbabwe

Hobbies and private activities

Any activities to the extent that it involves the making of exempt supplies

How does VAT work?

All registered operators are required to charge VAT at the appropriate rate. This is calledoutput tax. It applies to supplies made to both registered and non-registered operators.

Registered operators are entitled to claim input tax on purchases of goods and/or services,which are for use in making taxable supplies.

Calculation of VAT

Output tax less input tax in a particular tax period results in the amount payable orrefundable.

Purchases + expenses + Value Added or + VAT Selling Pricei l di VAT


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Example:

When a supermarket buys a bar of soap from a manufacturer for $2 000.00, it would payVAT of $300.00 i.e. ($2 000.00 x 15%) on the purchase. The total purchase price would thus

be $2 300.00. The $300.00 VAT becomes the supermarkets input tax and the manufacturersoutput tax. If the supermarket sells the bar of soap for $3 000.00 it would charge VAT of$450.00(3000.00 x 15%).This $450.00 VAT is the supermarkets output tax. VAT payable by the supermarket willthus be $450.00-$$300.00 =$150.00.

CHAPTER 2

HOW TO REGISTER YOUR BUSINESS

Who must register?

Any person who carries on a taxable activity and whose annual turnover exceeds or is likelyto exceed the prescribed amount must apply to register for VAT purposes on form VAT 1.A person includes any of the following:-

Company

Partnership or joint venture. Local and public authorities.

Trust.

Deceased or insolvent estates.

May I register for VAT if my turnover is below the prescribed amount?

Yes you can apply to register under voluntary registration.

Can my application for voluntary registration be refused?Yes. The Commissioner may deny registration where one:

Has no fixed residential address or business address

Does not keep proper accounting records for the business.

Does not operate a bank account for the business

Has failed to perform the duties under the repealed Sales Tax Act or the VAT Act if onewas registered under such Acts.

I have many branches, can I register them separately?Yes. You can register your branches separately when each branch is carrying on a separatetrade by reference to the nature of the business activities or geographical location of each

branch and such branch maintains independent accounting system.

Who can be excluded from registration?

A d ti th f ll i ti iti b l d d f i t ti


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VAT registration can be cancelled if:

The annual taxable turnover falls below the prescribed turnover for clients that wereregistered compulsorily

One ceases trading

One was registered voluntarily but no longer meets the voluntary registrationconditions

.

What are the responsibilities upon registration?

One will be obliged to comply with the following requirements of the VAT Act:

Keep accounting records for a period of at least six (6) years after the tax period towhich the records relate.

Complete and submit VAT returns as required.

Calculate and pay the VAT due to the Commissioner on or before the due date.

Issue tax invoices for any taxable supplies where the value is more than the prescribedamount.

Advise the Commissioner of any changes in business details such as change ofaddress, addition of new partner, cessation of trade, etc.

Allow the Commissioner to enter the business premises and examine goods and allbusiness records.

Registration for VAT

Does your activity constitute a trade?

NoYes

Is the total value of your taxablesupplies more than the prescribedamount?

Yes

Register(compulsorily)

No


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CHAPTER 3

TAX PERIODS

A registered operator is required to submit returns and account for VAT to the Commissioneraccording to the allocated tax period.

Which tax periods are available?

Tax periods cover one month, two months or any other period as approved by theCommissioner after a written application. Tax periods end on the last day of a calendar

month. One may however arrange with the Commissioner for registered operators tax periodto end on another date up to 10 days before or after the month-end. At registration, one will

be allocated one of these tax periods.

1. Category A: A two-month period ending on the last day of January, March, May, July,September, and November

2. Category B: : A two-month period ending on the last day of February, April, June,August, October, and December.

3. Category C(one month tax period)

Under category C, VAT returns are submitted on a monthly basis.One will be registered according to Category C when:9 The turnover of taxable supplies exceeds the prescribed amount per annum. Where the

registered operator has more than one business, or operates a business with branches, thesupplies for all businesses or branches must be added together to determine the totalturnover.

9 One has applied to be in this category.9 One has repeatedly failed to perform any of the obligations as a registered operator.

4. Category DA registered operator will be allowed this category upon written application to theCommissioner. In order for one to be in this category, ones trade should consist solely offarming, agricultural or pastoral activities and ones turnover should not exceed or is notlikely to exceed the prescribed amount per annum.


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CHAPTER 4

ACCOUNTING FOR VAT

VAT is accounted for on either the invoice or the cash basis.

INVOICE BASIS

The invoice basis is where the registered operator must account for output tax on both creditand cash sales. The operator must also claim input tax on both credit and cash purchases and

expenses incurred for making taxable supplies.

Where payment is received before the issuance of a tax invoice, the general time of supplyrule applies, that is the earlier of an invoice being issued or payment being received.

Example

AB Ltd sales a computer for $1 150 000.00 including VAT, The company issues a taxinvoice dated 15 May 2004. Payment is received on 20 June 2004.AB Ltd. Accounts for $150

000.00($1 150 000.00 x 15/115) in the tax period covering 15 May 2004.This is because thedate of issue of an invoice is earlier than the date of payment.

CASH OR PAYMENT BASIS

The cash or payment basis is where the registered operator claims input tax or accountsfor output tax on the actual payments made or received.

Example

XYZ Ltd sells a television set for $1 500 000.00 including VAT on 15 May 2006.It issuesan invoice for the supply that date. A payment of $150 000.00 is received on 2 June2006.A second payment of $342 000.00 is received on 5 July 2006.A balance of $658000.00 is received on 7 August 2006.XYZ Ltd accounts for $19 565 VAT(150 000 x15/115) in the tax period covering 2 June 2006 and $44 608 VAT($342 000.00 X 15/115)in the tax period covering 5 July 2006.VAT on $658 000.00 of $85 626.00(658 000.00 x

15/115) will be accounted for in the tax period covering 7 August 2006.

The cash or payment basis is only applicable to local authorities, public authorities andprivate voluntary organizations on application. The application must be in writing.

CHANGE OF ACCOUNTING BASIS


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CHAPTER 5

TAXABLE AND EXEMPT SUPPLIES

Taxable supplies are supplies that are taxable at the following rates.

Zero rate 0%

Standard rate 15%

Special rate 22.5%

Zero rated SuppliesThese are supplies on which VAT is chargeable at rate at 0%Some of the examples of zero rated supplies are:-

Exports of goods from Zimbabwe to an address in an export country.

Basic foodstuffs such as: uncooked beef, uncooked fish, milk and milk products, freshbirds eggs, plain bread, mealie meal, etc.

Goods used for agricultural purposes such as: animal remedy, fertilizers, pesticidesetc.

International transport services provided by a registered person. Services physically rendered outside Zimbabwe.

A full list of zero rated goods are prescribed in terms of Section 10(1) as read with the 2ndschedule to the VAT Regulation, while zero rated services are prescribed in terms of Section10(2) of the VAT Act.

Note: VAT incurred in making zero-rated supplies may be claimed as input tax.

Standard-rated Supplies

These are supplies of goods on which VAT is chargeable at 15%.Generally all goods and services are standard rated unless specifically exempted, zero-ratedor subject to VAT at a special rate.

Exempt SuppliesThese are supplies of goods or services on which VAT is not chargeable and do not form part

of the taxable turnover. A trader who makes only exempt supplies is not required to registerfor VAT.

Note: VAT incurred on any expenses in order to make exempt supplies cannot be claimed asan input tax.

Some of the examples of exempt supplies are:


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Fuel

A full list of exempt supplies is prescribed in terms of Section11of the Act as read with firstschedule of the VAT Regulations.

Supplies taxed at special rate

These are supplies of cellular telecommunication services by a registered operator. Suchsupplies are charged VAT at the rate of 22.5%.

Deemed SuppliesThese are transactions, which do not generally appear as actual supplies but regarded by lawto be supplies.The following are examples of deemed supplies:-

Goods or services taken for own use.

Motoring benefit.

Closing stock and assets on hand at the time of de- registration.

Subsidies or grants received from the state or local authority.

Goods acquired under an instalment credit agreement that have been re-possessed bythe seller.

Transfer of goods between independent branches.

Change of Use

Where goods or services were purchased or imported for business and input tax was claimed,and such goods or services are later used exclusively for private purposes, output tax should

be accounted for.

Example

Pauline, a chartered accountant bought a computer in January 2005 for $4 900 000.00 for usein her office. She claimed input tax of $117 391.30. In December 2005, she decided to takethe computer home for her personal use. Its market value at that stage was $700 000.00.Output tax will be the tax fraction of the market value and will thus be $91 304.30($700000.00 x 15/115).


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CHAPTER 6

INPUT TAX CREDIT

Which amounts may be claimed as input tax?

Any VAT paid on local purchases or on the importation of goods for making taxablesupplies may be claimed as input tax.

If goods or services are acquired for the purpose of making both taxable and non-taxable

supplies, only the VAT attributable to taxable supplies can be claimed as input tax.

Where goods or services are acquired by a registered operator to make both taxable andexempt supplies, full VAT incurred may be claimed as Input Tax if the ratio of the valueof taxable supplies to total supplies exceeds 90%.

Which amounts may not be claimed as input tax?

VAT incurred in respect of the following purchases may not be claimed as input tax:

Entertainment which includes staff meals, Christmas parties and customerentertainment of all kinds (this includes equipment purchased to provide staffrefreshments, e.g. canteen utensils.)

Goods or services acquired exclusively for making exempt supplies.

Club subscriptions fees or subscriptions incurred by a registered operator formembership of a club or association of a sporting, social or recreational nature.

Acquisition of passenger motor vehicles as specified.

When to claim input taxInput tax should be claimed in the tax period during which goods and/or services areacquired or imported. To be able to claim input tax, one must be in possession of a validtax invoice that meets the requirements as set out in section 20 of the VAT Act. If goodsare imported for making taxable supplies, the importer must be in possession of the Billof Entry..

When can input tax be apportioned?

Input tax shall be apportioned when goods or services are acquired partly for makingtaxable supplies and partly for making exempt supplies.

Apportionment of input tax

If the ratio of taxable supplies to total supplies is 90% or more, full input tax may beclaimed The basis for apportionment shall be based on turnover Any other alternative


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CHAPTER 7

TAX INVOICE

A valid tax invoice must contain the following features:1. The words ''Tax Invoice'' should be inscribed in a prominent place.2. The name, address and VAT number of the supplier.3. The name, address and VAT number of the recipient.4. The invoice must be serialised5. The date on which the invoice was issued.

6. A description and quantity of the goods or services supplied.7. Either:-9 The value (excluding VAT) of the supply and the amount of VAT charged and the

consideration or9 The consideration (price including VAT) for the supply and a statement that the

consideration includes VAT and the rate at which the VAT was charge or9 The consideration (price including VAT) for the supply and the amount of VAT

charged.


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SAMPLES OF VALID TAX INVOICES

TAX INVOICE A

QtyDescription Unit

PriceVATExclusiveAmount

VAT Amount VAT Inclusive Amount

$ C $ c $ C $ C

60 Door Frames 12 000 00 720 000 00 108 000 00 828 000 00

250 Asbestos roofingsheets

4 500 00 1 125 000 00 168 000 00 1 239 750 00

200 Rolls of brick force 1 500 00 300 000 00 45 000 00 345 000 00

Total321 750 00 2 412 750 00

VAT Reg No10000012

Name &address ofthe supplier

Name, address & VATnumber ofthe purchaser

Invoice Number

Mr A N Fish1445 Chabwino RoadMufakoseVAT Reg No. 1000055

The words TaxInvoice in a

rominent lace

National HomeSuppliers13 Chester Road

20th March 2004

Date of Issue ofTax invoice

TAX INVOICE

VAT registrationNumber of supplier

Qty or volume and

Description ofgoods or servicessu lied

Inv.No.1234

Price and VAT charged


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TAX INVOICE B

QtyDescription Unit

PriceVAT ExclusiveAmount

VAT Amount VAT InclusiveAmount

$ C $ c $ C $ C

60 Door Frames 12 000 00 720 000 00 108 000 00 828 000 00

250 Asbestos roofingsheets

4 500 00 1 125 000 00 168 000 00 1 239 750 00

200 Rolls of brick force 1 500 00 300 000 00 45 000 00 345 000 00

VAT Reg No10000015

Name &address ofthe supplier

Name, address & VAT reg.no. Of purchaser

InvoiceNumber

Mrs A M Chimoti14 Arlinton RoadLogan Park HatcliffeVAT No. 1000555

National Hardware

47 Douglas RoadSoutherton Harare

20th March

2004


TAX INVOICE

Qty or volume andDescription ofgoods or services

Supplied

Inv.No.234456

The words TaxInvoice in aProminent place

VATRegistrationnumber

Vat Charged


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TAX INVOICE C

Qty Description VAT Code VAT Inclusive Amount$ C

1 12 Cubic Refrigerator 2 600 000 00

10 14 Colour Television 2 2 000 000 00

15 Cartoons of cooking oil 1 150 000 00Total 2 750 000 00

Name, address& VAT No. ofthe urchaser

TAX INVOICE

VATRegistration No10000015


The words TaxInvoice in aProminent place

Chomonbika General Dealer14 Close Road Gokwe CentreGokweVT Reg. No. 1000067

Name &address of thesupplier

Qty or volume andDescription ofGoods or services

Supplied

ABC Wholesalers

47 Lsxton RoadWorkingtonHarare

20th March 2004

VAT INCLUDED IN THE ABOVE AMOUNTS AT THEFOLLOWING RATES

The priceinclusive of

VAT

VATRegistrationnumber


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COPIES OF AN ORIGINAL TAX INVOICE

A copy of an original tax invoice may be issued in situations where the original is lost.

The word copy should be clearly shown on the invoice.

DEBIT AND CREDIT NOTES

Debit or credit notes may be issued under the following circumstances:

Where a supply of goods or services is cancelled or goods are returned to the seller.

Where an incorrect price was charged on the tax invoice.

Where a discount is granted to the purchaser. Where the nature of the goods or services is changed resulting in a change in the

transaction.

Requirements of a valid debit or credit note

The following details must be shown on a debit or credit note issued by a registeredoperator:

The words debit note or credit note must appear on a prominent place.

The name, address and VAT registration number of the supplier or service provider. The date on which the debit or credit note was issued.

The value of supply shown on the invoice, the correct amount of the transaction, thedifference between the two amounts and the tax charged on the difference.

Brief explanation of the reason for issuing the debit or credit note.

Adequate information to identify the tax invoice to which the debit or credit noterelates.

CHAPTER 8

CALCULATION OF VAT

The following steps show how VAT is calculated:

STEP 1

Determine the VAT charged (output tax)

Calculate the value of supply and VAT due on all supplies made during the tax period.The total value of supply for standard-rated supplies (15%), special rated (22.5%), zero-rated

d t li f th t i d t b d t i d t l Th t t l l l t d


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STEP 2

Determine the input tax

The following amounts should be calculated separately:

1. Total purchase price and VAT incurred on local purchases. Omit tax paid on suppliesthat do not qualify for input tax credit e.g. entertainment.

2. Total purchase price and VAT incurred on capital goods acquired for making taxablesupplies.

3. The value and VAT incurred on importation of capital goods.4. The total input tax is determined by adding up the VAT incurred on local purchases

and importation of taxable supplies.

STEP 3

Adjustments

A registered operator may have to adjust VAT previously due or claimed. Adjustments maybe made on:

1. Change of use of capital assets2. Change of use of other goods

3. Bad debts recovered or written off4. Motoring benefits

STEP 4

Pay the difference or claim the refund

If the total output tax exceeds the total input tax,the registered operator pays the difference

to the Commissioner.

If the total input tax exceeds the total output tax, the registered operator is entitled to claim arefund from the Commissioner.

The VAT return form in annexure 1 should be completed and submitted according to theclients tax period.

PRICING

What are the requirements when advertising or quoting?

Registered operators are required to include VAT in advertisements or quotations. It must be


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However, where notices at all entrances to the premises and at all pay points display thatprices include VAT, the above requirement can be dispensed with on the tickets.

How should a registered operator determine price of goods and services?

In determining the price of goods and services to charge customers, input tax incurred shouldnot be considered as a cost since it will be claimed as a credit.

Example:Mr. X bought a bicycle valued at $11 500.00 for resale. His mark up is 50%. His selling pricewill thus be:

Purchase price $11 500Less VAT paid (11 500 x 15/115) $1 500Actual Cost $10 000

Add50% mark-up $5 000Selling price before VAT $15 000

AddVAT at 15% $2 250Selling price including VAT $17 250

CHAPTER 9

RECORDS TO BE MAINTAINED

A registered operator is required to keep correct records and documents relating to his tradefor at least six years.These include the following:

1. Sales records including tax invoices, cash sale slips/till rolls, credit and debit notes2. Purchases records including tax invoices, cash purchases receipts, credit and debit

notes3. Other tax invoices, credit and debit notes for capital assets and expenses incurred for

making taxable supplies

4. Financial statements5. Bank statements6. Stock sheets7. Bank deposit slips8. Any other documents which relate to transactions or entries in any books of account.9. Importation and exportation documents


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CHAPTER 10

VAT ON IMPORTS AND EXPORTS

Exports

Generally exports are zero-rated, which means they are charged VAT at 0%. Exportersregistered for VAT can claim input tax on purchases of goods and services used in makingzero-rated supplies.

A trader must retain documentary proof acceptable to the Commissioner that goods were

exported e. g customs stamped export bill of entry, valid tax invoice, delivery note, recipientsorder and proof of receipt and any other documents as required by the Commissioner.

The following are some of the zero-rated exports:9 Goods supplied in terms of a sale or instalment credit agreement and consigned or

delivered to a customer in an export country.9 Rental of immovable goods in an export country which are used exclusively in

that export country by a lessee.9

Transfer of goods to and sales by independent branches in an export country.9 International transport of passengers or goods.9 Insurance related to international transport.9 Transport of cargo on behalf of non- residents.9 Services supplied in connection with immovable property situated in an export

country.

Imports

The importation of goods and services into Zimbabwe attracts VAT at 0% or 15%. Thefollowing importations are exempt from VAT:

9 Certain goods for welfare or charitable organisations9 Used personal effects9 Goods temporarily imported9 Goods originally exported from Zimbabwe and then re-imported without having

been subjected to any process of manufacture.

9 Other goods for which a prescribed rebate is granted in terms of the Customs andExcise Act

If goods are imported to make taxable supplies, the VAT incurred can be claimed as input taxcredit. A processed bill of entry must be produced to prove the claim. VAT is payable onimported goods when they are entered for home consumption. Goods imported by private


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How VAT is calculated on importation?

The taxable value of imported goods is the sum of the value for Customs duty purposes andthe Customs duty payable.

Example:

Value for duty purposes $100 000.00Customs duty at 10% $ 10 000.00Value for tax purposes $100 000.00Vat due (15% x $100 000) $ 15 000.00

NB Non-registered persons cannot claim input tax credits.

VAT on imported services

Imported services means a supply of services that is made by a supplier who is not a residentor who carries on business outside Zimbabwe to a recipient who is a resident of Zimbabwe tothe extent that such services are utilised or consumed in Zimbabwe. VAT is only payable ifthe recipient of an imported service is not a registered operator or the service is not formaking taxable supplies.

Where VAT is payable (in the case of non-registered operators), the recipient of importedservices is required to furnish a declaration to the Commissioner in the form of VAT 8 within30 days of a supply, as well as to calculate the tax payable on the value of the importedservice and pay the VAT due.

The amount charged for the service is deemed to include VAT. The time of supply of an

imported service is deemed to be the date the supplier issues an invoice or payment is madeby the recipient, whichever is the earlier.


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CHAPTER 11

OBJECTIONS AND APPEALS

Objections

If a registered operator is not satisfied with a decision given or assessment or ruling made bythe Commissioner, he may lodge an objection against such decision. The objection must be inwriting, setting out the grounds upon which it is made.

The client must submit the objection letter within 30 days of the date of notice of anydecision, assessment or ruling. The Commissioner may, after having considered theobjection:

alter the decision

alter or reduce the assessment

disallow or allow the objection

Notification of such alteration, reduction or disallowance shall be made to the client in

writing.

Appeals

Where the registered operator is not satisfied with a decision to an objection, assessment orruling made by the Commissioner, he may appeal against such decision to the Fiscal AppealCourt or Supreme Court. The appeal must be in writing and received by the Commissionerwithin 30 days of the notice of alteration, reduction or disallowance of the objection. Theappeal is limited to the grounds of objection.

The fiscal Appeal Court or Supreme Court may, after having considered the appeal:

alter the decision

alter or reduce the assessment

disallow or allow the appeal

Kindly note: An objection or appeal does not suspend the payment of tax, penalty or interest.


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CHAPTER 12

INSPECTION VISITS AND ASSISTANCE

When will a registered operator be visited?

In order to minimise the administrative burden placed on business, inspection visits will bemade by appointment. However, in order to make sure that everyone is paying the correct taxat the correct time, spot checks may be made without appointment.Sometimes it may be necessary for the Commissioner to re-examine records.

Assistance

For more information, contact the offices of the Zimbabwe Revenue Authority in your area.


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ZIMBABWE REVENUE AUTHORITY OFFICES

Head Office: ZB Centre, 6th

Floor Cnr Kwame Nkrumah Ave/1st

Street

P.O. Box 4360 Harare, Fax: 04 773 161 and 04 752731-2 Tel: 04 790811-4

REGION 1 REGION 2 REGION 3

Regional Manager

Harare

3rd Floor, Kurima House

89 Nelson Mandela AveBetween 3

rdStreet and

4th

Street

P.O. Box CY 693,

Causeway

Tel.: 795720-49

Fax: 722164

Regional Manager

Bulawayo

Block D

Mhlahlandlela BuildingCnr. 10

thAve./Basch St.,

BulawayoP.O. Box 601, BulawayoTel: (09) 883748Fax: (09) 68854

Regional Manager

Masvingo

ZIMRE Centre

Cnr Hughes Street/SimonMazorodze RoadP.O. Box 828MasvingoTel: (039) 262598Fax: (039) 262064

Harare Port

Customs House3, South AvenueP.O. Box CY78,CausewayTel: 758891-9Fax: 758900

Bulawayo Audits

Mhlahlandlela BuildingCnr. 10th Ave./Basch St.,BulawayoP.O. Box 601, BulawayoTel: (09) 70161/5Fax: (09) 68854

Gweru

Government Composite Office10th StreetP.O. Box 350, GweruTel: (054) 22821Fax: (054) 23750

Chirundu Border Post

P. Bag 6, ChirunduTel: (0637) 616Fax: (0637) 646

Beitbridge Border Post

P. Bag 5746BeitbridgeTel: (086) 22529Fax: (086) 22258

Kwekwe

PTC P/F BuildingP. Bag 8146, KwekweTel.: (055) 24288Fax: (055) 24289

Kariba Border PostP.O. Box 97, KaribaTel: (061) 2355Fax: (061) 2355

Beitbridge Town Office

2 Bloomfield BuildingHagelthorn RoadBeitbridgeTel.: (086) 23598

Forbes Border Post

P.O. Box 90, MutareTel: (020) 67532Fax: (020) 66196

Nyamapanda Border

Post

P. Bag 510, Mutoko

Tel: (072) 2504

Fax: (072) 2569

Hwange

12 Southgate Road

P.O. Box 145, Hwange

Tel.: (081) 20874

Mt Selinda Border Post

P. Bag 2062, Chipinge

Tel: (027) 4511-2

Fax: (027) 4513


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Mukumbura Border Post(Please contact

Nyamapanda Office)

Victoria Falls Border

PostP. Bag 5917, Victoria

FallsTel: (013) 44322Fax: (013) 44321

Chipinge

130 Moodie StreetP. Bag 2062, Chipinge

Tel.: (027) 4511Fax: (027) 4513

Chinhoyi

76 Beleview RoadP.O. Box 164, ChinhoyiTel.: (067) 29091

Kazungula Border Post

c/o P. Bag 5917Victoria FallsTel: (013) 4776, 42330Fax: (013) 44321

Rusape

Shop 2, 22 Chimurenga StreetP.O. Box 244, RusapeTel.: (025) 3761Fax: (025) 2391

Bindura

846 Matuka Inve CentreYork RoadP.O. Box 723, BinduraTel.: (071) 6931

Pandamatenga Border

Post(Please contact VictoriaFalls Office)

Kadoma

20 Union AvenueP. Bag 603, KadomaTel.: (068) 25447Fax: (068) 25449

Marondera

Contact Harare Regional

Office

Mphoengs Border Post

(Please contact Plumtree

Office)

Maitengwe Border Post(Please contact Plumtree Office)


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ZIMBABWE REVENUE AUTHORITY *For office useVAT Return No

Document No

Tax Period Code

PART[I] PARTICULARS OF REGISTERED OPERATOR

5. BP Number1. Operators Registered

Name 6 VAT No

2. Operators Trade

Name 7. Region Code 7a. Station

3. Cell No / Telephone 8. Tax Period (Months)

9. Due Date4. Postal

Address

10. TIN

PART [II] DECLARATION OF OUTPUT TAX

ForOfficeUse

VALUE OF SUPPLY

(Selling Price Excluding VAT)OUTPUT TAX

Mat. Code Dollars Cents Dollars Cents

11.Supply of goods and/or services at standard rate 15%. V09

12.Supply of goods and/or services at standard rate 17, 5%. V15

13.Supply of cellular telecommunications services at special rate 22,5% V11

14.Supply of goods and/or services at 0%. V12

15. Exempt Supplies V18

ADJUSTMENTS

16.Change of use of goods and/or services. (Goods applied to own use) V21

17.Change of use of capital goods V24

18.Bad Debts recovered V27

19.Debit/Credit Notes (Debit Notes Issued & Credit Notes Received) V30

DEEMED SUPPLY

CONSIDERATION

(Inclusive of Tax)

20.Fringe Benefits Section 8(1)(f) at 15% V3321. Fringe Benefits Section 8(1)(f) at 17.5% V34

22. TOTAL OUTPUT TAX(Add all items from 11 through to 21)

[A]

PART [III] INPUT TAX CLAIM

VALUE INPUT TAX

23.Local goods and/or services purchased to make taxable supplies V39

24.Imported goods to make taxable supplies V42

25.Capital goods purchased to make taxable supplies V45

ADJUSTMENTS

26.Change of use of goods and/or services V48

27.Change of use of capital goods V5128.Bad Debts written off V54

29.Credit/Debit Notes (Credit Notes Issued & Debit Notes Received) V57

30. TOTAL INPUT TAX (Add all items from 23 through to 29) [B]

PART [IV] CALCULATION OF VAT PAYABLE/REFUNDABLE

Dollars Cents31.TOTAL OUTPUT TAX (Box 22)

Return for Remittance/Refund of Value


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Sign on the reverse side.

I CERTIFY THAT THE PARTICULARS IN THIS RETURN ARE TRUE AND CORRECT

Name: _______________________________________________________________Designation: __________________________________________________________

Signature: ____________________________________________________________

Date

D D / M M / Y Y Y Y

There are severe penalties for false declaration, failure to pay tax when due, or submitting the return late.Please use this form only when submitting payments in respect of periodic returns. For any

other payments, e.g. assessments, penalties etc use VAT16.Please fill this form in duplicate, submit original to ZIMRA and retain duplicate copy.

VAT TAX PERIODS

Category A

Tax Period VAT Return No. Due Date

December/January 01 20 February

February/March 02 20 April

April/May 03 20 June

June/July 04 20 August

August/September 05 20 October

October/November 06 20 December

Category B

Tax Period VAT Return No. Due Date

January/February 01 20 March

March/April 02 20 May

May/June 03 20 July

July/August 04 20 September

September/October 05 20 November

November/December 06 20 January

Category C

Tax Period VAT Return No Due Date

January 01 20 February

February 02 20 March

March 03 20 April

April 04 20 May

May 05 20 June

June 06 20 July

July 07 20 August

August 08 20 September

September 09 20 October

OFFICE STAMP


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1

Annexure II

VALUE ADDED TAX PRESCRIBED AMOUNTS

SECTION OFTHE ACT

PRESCRIPTION 1/1/04$

1/1/05$

1/1/06$

1/8/06$

1/1/07$

1/10/07$

2(1) Annual turnover for commercialrental establishment

2.5m 2.5m 10m 10 000 120 000 4.8m

7(4) Lay-bye agreements 500 000 500 000 2m 2 000 24 000 960 000

17(2) Taxable supply re: capital goodsand services

1m 1m 5m 5 000 60 000 2.4m

20(5)& (7)

supplier not required to providea tax invoice

5 000 5 000 20 000 20 1 000 40 000

23(1) Compulsory registration 250m 250m 6bn 6m 60m 2.4bn

23 (3) Voluntary registration Subject tomeeting theCommissioner

s setconditions

Subject tomeetingthe

Commissioners setconditions

Subject tomeeting theCommissioners

set conditions

Subject tomeeting theCommissioner

s setconditions

Subject tomeeting theCommissioner

s setconditions

Subject to meeting theCommissioners setconditions

27(2)(b) &27(5)(a)i

Category C 5bn 5bn 20bn 20m 240m 9.6m

27(6)(1) Category D 200m 200m 900m 900 000 120m 4.8

39(3)(a) Failure to pay tax on due date Penalty equalto amount of

tax due

Penaltyequal to

amount oftax due

Penalty equal toamount of tax

due

Penalty equalto amount of

tax due

Penalty equalto amount of

tax due

Penalty equal to amounttax due

44(1)(b),44(3)(b) & 44(4)(b)

Minimum amount refundable 1m 1m 5m 5 000 60 000 2.4m


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VAT GUIDE 2nd Edition

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Transcript of VAT GUIDE 2nd Edition