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[2007 2nd Edition] ZIMRA VAT GUIDE INDEX FOREWORD....3 SOME IMPORTANT TERMS.3 CHAPTER 1 CHAPTER 1 CHAPTER 2 CHAPTER 3 CHAPTER 4 CHAPTER 5 CHAPTER 6 CHAPTER 7 CHAPTER 8 CHAPTER 9 CHAPTER 10 CHAPTER 11 CHAPTER 12 WHAT IS VAT...4 HOW VAT WORKS...4 HOW TO REGISTER YOUR BUSINESS -...........5 TAX PERIODS....7 ACCOUNTING FOR VAT.....8 TAXABLE AND EXEMPT SUPPLIES......9 INPUT TAX CREDIT....10 TAX INVOICE...12 CALCULATION OF VAT AND PRICING..16 RECORDS TO BE MAINTAINED...18 VAT ON IMPORTS AND EXPORTS...19 OBJECTIONS AND APPEALS.....20 INSPECTION VISITS AND ASSISTANCE.... 21

ZIMBABWE REVENUE AUTHORITY OFFICES22 ANNEX 1 ANNEX 2 VAT 7 RETURN...........24 VAT PRESCRIBED AMOUNTS..26

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 is also important to note that this guide does not substitute the Value Added Tax Act. Should there be aspects relating to VAT which are not clear or covered in this guide, or should you require information on a legal issue or specific decision, you may address your enquiry in writing to your local Zimbabwe Revenue Authority (ZIMRA) office. SOME IMPORTANT TERMS Commissioner means Commissioner General of the Zimbabwe Revenue Authority. Trade means any activity or business which is carried on continuously or regularly in or partly in Zimbabwe by any person of which goods or services are supplied for a consideration, whether or not for profit. Exempt supplies means supplies which are immune from VAT in terms of Section 11 of the VAT Act. Input Tax is the tax a registered operator is charged on goods or services acquired or imported for the purposes of making taxable supplies. Output Tax is the tax charged by a registered operator on the supply of taxable goods or services Consideration includes any payment made or to be made for a supply of goods and services made by the registered operator Zero-rated supplies means supplies of goods or services where the rate of 0% is applied. Standard-rated supplies means supplies of goods or services where the rate of 15% is applied. Taxable supply means supplies of goods or services taxed at the rate of 0%, 15% and the special rate of 22.5%. VAT Return is the form used to declare the value of supplies, output and input tax of a registered operator to the Commissioner. Registered Operator means any person who has registered or is required to register for VAT purposes. Tax periods means regular intervals in which registered operators are required to submit returns and account for VAT, Entertainment means the provision of any food, beverages, accommodation, entertainment, amusement, recreation or hospitality of any kind by a registered operator whether directly or indirectly to any one in connection with the trade carried on by him.

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 of this 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 without receiving 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 be registered 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 is subject 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 called output 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 or refundable. Purchases + expenses Less Input Tax + Value Added or Mark-up + VAT = (Output Tax) Selling Price including VAT

Output tax

Input Tax ___ =

VAT Payable/Refundable

Example: When a supermarket buys a bar of soap from a manufacturer for $2 000.00, it would pay VAT 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 manufacturers output 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 will thus 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 likely to 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 one was 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 separate trade 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? Any person conducting the following activities can be excluded from registration: Private or recreational pursuit or hobby. Services provided by an employee to an employer. Trading in exempt supplies. Independent branches operating outside Zimbabwe. Under what circumstances can registration be cancelled?

VAT registration can be cancelled if: The annual taxable turnover falls below the prescribed turnover for clients that were registered compulsorily One ceases trading One was registered voluntarily but no longer meets the voluntary registration conditions . 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 to which 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 prescribed amount. Advise the Commissioner of any changes in business details such as change of address, addition of new partner, cessation of trade, etc. Allow the Commissioner to enter the business premises and examine goods and all business records. Registration for VAT Does your activity constitute a trade?

No

Yes

Is the total value of your taxable supplies more than the prescribed amount?

Yes

Register (compulsorily) No

Dont register

No

Do you want to register voluntarily?

Yes

Apply to the Commissioner for voluntary registration

CHAPTER 3 TAX PERIODS A registered operator is required to submit returns and account for VAT to the Commissioner according to the allocated tax period. Which tax periods are available? Tax periods cover one month, two months or any other period as approved by the Commissioner 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 period to 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, the supplies for all businesses or branches must be added together to determine the total turnover. 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 D A registered operator will be allowed this category upon written application to the Commissioner. In order for one to be in this category, ones trade should consist solely of farming, agricultural or pastoral activities and ones turnover should not exceed or is not likely to exceed the prescribed amount per annum.

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 credit and 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 supply rule 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 tax invoice 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 the date 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 accounts for 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 issues an invoice for the supply that date. A payment of $150 000.00 is received on 2 June 2006.A second payment of $342 000.00 is received on 5 July 2006.A balance of $658 000.00 is received on 7 August 2006.XYZ Ltd accounts for $19 565 VAT(150 000 x 15/115) 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 and private voluntary organizations on application. The application must be in writing. CHANGE OF ACCOUNTING BASIS The Commissioner may approve change of accounting basis. If the Commissioner approves change of accounting basis, an adjustment must be made in the final return of the old basis.

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 Supplies These 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, fresh birds eggs, plain bread, mealie meal, etc. Goods used for agricultural purposes such as: animal remedy, fertilizers, pesticides etc. 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 2nd schedule to the VAT Regulation, while zero rated services are prescribed in terms of Section 10(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-rated or subject to VAT at a special rate. Exempt Supplies These 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 register for VAT. Note: VAT incurred on any expenses in order to make exempt supplies cannot be claimed as an input tax. Some of the examples of exempt supplies are: Financial services. Provision of electricity for domestic use Provision of piped water for domestic use Rates charged by Local Authorities. Educational services Medical services supplied by any person or institution. Residential accommodation.

Fuel

A full list of exempt supplies is prescribed in terms of Section11 of the Act as read with first schedule of the VAT Regulations. Supplies taxed at special rate These are supplies of cellular telecommunication services by a registered operator. Such supplies are charged VAT at the rate of 22.5%. Deemed Supplies These are transactions, which do not generally appear as actual supplies but regarded by law to 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 by the 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 use in her office. She claimed input tax of $117 391.30. In December 2005, she decided to take the 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($700 000.00 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 taxable supplies 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 and exempt supplies, full VAT incurred may be claimed as Input Tax if the ratio of the value of 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 customer entertainment of all kinds (this includes equipment purchased to provide staff refreshments, e.g. canteen utensils.) Goods or services acquired exclusively for making exempt supplies. Club subscriptions fees or subscriptions incurred by a registered operator for membership of a club or association of a sporting, social or recreational nature. Acquisition of passenger motor vehicles as specified. When to claim input tax Input tax should be claimed in the tax period during which goods and/or services are acquired or imported. To be able to claim input tax, one must be in possession of a valid tax invoice that meets the requirements as set out in section 20 of the VAT Act. If goods are imported for making taxable supplies, the importer must be in possession of the Bill of Entry. . When can input tax be apportioned? Input tax shall be apportioned when goods or services are acquired partly for making taxable 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 be claimed. The basis for apportionment shall be based on turnover. Any other alternative method of apportionment should be approved by the Commissioner.

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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 serialised 5. 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 or 9 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 or 9 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


The words Tax Invoice in a prominent place VAT registration Number of supplier Date of Issue of Tax invoice

Name &address of the supplier

TAX INVOICE
Name, address & VAT number of the purchaser

VAT Reg No 10000012 20th March 2004

National Home Suppliers 13 Chester Road

Qty or volume and Description of goods or services supplied

Invoice Number Mr A N Fish 1445 Chabwino Road Mufakose VAT Reg No. 1000055

Inv.No.1234

Qty Description Unit Price $ 12 000 4 500 1 500 VAT Exclusive Amount C $ c 00 720 000 00 00 1 125 000 00 00 300 000 00 VAT Amount $ 108 000 168 000 45 000 321 750 C 00 00 00 00 VAT Inclusive Amount $ 828 000 1 239 750 345 000 2 412 750 C 00 00 00 00

60 250 200 Total

Door Frames Asbestos roofing sheets Rolls of brick force

Price and VAT charged

Total price inclusive of VAT

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TAX INVOICE B
The words Tax Invoice in a Prominent place VAT Registration number

Name &address of the supplier

VAT Reg No 10000015

TAX INVOICE
Name, address & VAT reg. no. Of purchaser National Hardware 47 Douglas Road Southerton Harare

Date of Issue of Tax invoice 20th March 2004 Invoice Number Inv.No.234456

Qty or volume and Description of goods or services Supplied

Mrs A M Chimoti 14 Arlinton Road Logan Park Hatcliffe

Vat Charged

VAT No. 1000555

Qty Description 60 250 200 Total Door Frames Asbestos roofing sheets Rolls of brick force Unit Price $ C 12 000 00 4 500 00 1 500 00 VAT Exclusive Amount $ c 720 000 00 1 125 000 00 300 000 00 VAT Amount $ 108 000 168 000 45 000 321 750 C 00 00 00 00 VAT Inclusive Amount $ C 828 000 00 1 239 750 00 345 000 2 412 750 00 00

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TAX INVOICE C
The words Tax Invoice in a Prominent place VAT Registration number

Name &address of the supplier

TAX INVOICE
Name, address & VAT No. of the purchaser ABC Wholesalers 47 Lsxton Road Workington Harare

VAT Registration No 10000015

Date of Issue of Tax invoice

20th March 2004

Qty or volume and Description of Goods or services Supplied

Chomonbika General Dealer 14 Close Road Gokwe Centre

Gokwe VT Reg. No. 1000067

The price inclusive of VAT

Qty 1 10 15

Description 12 Cubic Refrigerator 14 Colour Television Cartoons of cooking oil

VAT Code 2 2 1 Total

VAT Inclusive Amount $ C 600 000 00 2 000 000 00 150 000 00 2 750 000 00

VAT INCLUDED IN THE ABOVE AMOUNTS AT THE FOLLOWING RATES

VAT Code Code 1 Code 2

VAT Rate 0% 15%

A statement to the effect that VAT is included in the amounts and the rates of tax applicable

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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 registered operator: 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, the difference 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 note relates.

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 and exempt supplies for the tax period must be determined separately. The totals calculated must be recorded separately under the respective tax rates and in the appropriate cell of the VAT return. 1. Separately determine the value of fixed assets sold during the tax period. 2. The total output tax is determined by adding up the VAT for the taxable supplies.

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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 supplies that do not qualify for input tax credit e.g. entertainment. 2. Total purchase price and VAT incurred on capital goods acquired for making taxable supplies. 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 may be made on: 1. Change of use of capital assets 2. Change of use of other goods 3. Bad debts recovered or written off 4. 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 a refund from the Commissioner. The VAT return form in annexure 1 should be completed and submitted according to the clients 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 explicitly stated that VAT is included in the prices advertised or quoted. If both the price including VAT and the price excluding VAT are shown, then each amount must be shown with equal prominence. What should be recorded on price tickets? It is a requirement for price tickets to indicate that VAT is included in the selling price.

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However, where notices at all entrances to the premises and at all pay points display that prices 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 should not 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 price will thus be: Purchase price $11 500 Less VAT paid (11 500 x 15/115) $1 500 Actual Cost $10 000 Add 50% mark-up $5 000 Selling price before VAT $15 000 Add VAT at 15% $2 250 Selling 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 trade for at least six years. These include the following: 1. Sales records including tax invoices, cash sale slips/till rolls, credit and debit notes 2. Purchases records including tax invoices, cash purchases receipts, credit and debit notes 3. Other tax invoices, credit and debit notes for capital assets and expenses incurred for making taxable supplies 4. Financial statements 5. Bank statements 6. Stock sheets 7. Bank deposit slips 8. 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%. Exporters registered for VAT can claim input tax on purchases of goods and services used in making zero-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, recipients order 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%. The following importations are exempt from VAT: 9 Certain goods for welfare or charitable organisations 9 Used personal effects 9 Goods temporarily imported 9 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 and Excise Act If goods are imported to make taxable supplies, the VAT incurred can be claimed as input tax credit. A processed bill of entry must be produced to prove the claim. VAT is payable on imported goods when they are entered for home consumption. Goods imported by private individuals and non-registered persons attract VAT unless a specific exemption applies. Where goods are entered in a Customs and Excise licensed bonded warehouse, VAT becomes payable only when they are removed from the bonded warehouse for home consumption.

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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 and the Customs duty payable. Example: Value for duty purposes Customs duty at 10% Value for tax purposes Vat due (15% x $100 000) $100 000.00 $ 10 000.00 $100 000.00 $ 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 resident or who carries on business outside Zimbabwe to a recipient who is a resident of Zimbabwe to the extent that such services are utilised or consumed in Zimbabwe. VAT is only payable if the recipient of an imported service is not a registered operator or the service is not for making taxable supplies. Where VAT is payable (in the case of non-registered operators), the recipient of imported services is required to furnish a declaration to the Commissioner in the form of VAT 8 within 30 days of a supply, as well as to calculate the tax payable on the value of the imported service 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 made by 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 by the Commissioner, he may lodge an objection against such decision. The objection must be in writing, 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 any decision, assessment or ruling. The Commissioner may, after having considered the objection: 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 or ruling made by the Commissioner, he may appeal against such decision to the Fiscal Appeal Court or Supreme Court. The appeal must be in writing and received by the Commissioner within 30 days of the notice of alteration, reduction or disallowance of the objection. The appeal 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 be made by appointment. However, in order to make sure that everyone is paying the correct tax at 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 Regional Manager Harare 3rd Floor, Kurima House 89 Nelson Mandela Ave Between 3rd Street and 4th Street P.O. Box CY 693, Causeway Tel.: 795720-49 Fax: 722164 Harare Port Customs House 3, South Avenue P.O. Box CY78, Causeway Tel: 758891-9 Fax: 758900 Chirundu Border Post P. Bag 6, Chirundu Tel: (0637) 616 Fax: (0637) 646 Kariba Border Post P.O. Box 97, Kariba Tel: (061) 2355 Fax: (061) 2355 Nyamapanda Border Post P. Bag 510, Mutoko Tel: (072) 2504 Fax: (072) 2569 REGION 2 Regional Manager Bulawayo Block D Mhlahlandlela Building Cnr. 10th Ave./Basch St., Bulawayo P.O. Box 601, Bulawayo Tel: (09) 883748 Fax: (09) 68854 Bulawayo Audits Mhlahlandlela Building Cnr. 10th Ave./Basch St., Bulawayo P.O. Box 601, Bulawayo Tel: (09) 70161/5 Fax: (09) 68854 Beitbridge Border Post P. Bag 5746 Beitbridge Tel: (086) 22529 Fax: (086) 22258 Beitbridge Town Office 2 Bloomfield Building Hagelthorn Road Beitbridge Tel.: (086) 23598 Hwange 12 Southgate Road P.O. Box 145, Hwange Tel.: (081) 20874 REGION 3 Regional Manager Masvingo ZIMRE Centre Cnr Hughes Street/Simon Mazorodze Road P.O. Box 828 Masvingo Tel: (039) 262598 Fax: (039) 262064 Gweru Government Composite Office 10th Street P.O. Box 350, Gweru Tel: (054) 22821 Fax: (054) 23750 Kwekwe PTC P/F Building P. Bag 8146, Kwekwe Tel.: (055) 24288 Fax: (055) 24289 Forbes Border Post P.O. Box 90, Mutare Tel: (020) 67532 Fax: (020) 66196 Mt Selinda Border Post P. Bag 2062, Chipinge Tel: (027) 4511-2 Fax: (027) 4513 Chiredzi 609, Baobab Road P.O. Box 208, Chiredzi Tel: (031) 2505 Fax: (031) 5144

Plumtree Border Post Kanyemba Border Post (Please contact Chirundu P.O. Box 7, Plumtree Tel: (019) 2561-4 Office) Fax: (019) 2565

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Mukumbura Border Post Victoria Falls Border (Please contact Post Nyamapanda Office) P. Bag 5917, Victoria Falls Tel: (013) 44322 Fax: (013) 44321 Kazungula Border Post Chinhoyi c/o P. Bag 5917 76 Beleview Road Victoria Falls P.O. Box 164, Chinhoyi Tel: (013) 4776, 42330 Tel.: (067) 29091 Fax: (013) 44321 Bindura 846 Matuka Inve Centre York Road P.O. Box 723, Bindura Tel.: (071) 6931 Marondera Contact Harare Regional Office Pandamatenga Border Post (Please contact Victoria Falls Office) Mphoengs Border Post (Please contact Plumtree Office)

Chipinge 130 Moodie Street P. Bag 2062, Chipinge Tel.: (027) 4511 Fax: (027) 4513 Rusape Shop 2, 22 Chimurenga Street P.O. Box 244, Rusape Tel.: (025) 3761 Fax: (025) 2391 Kadoma 20 Union Avenue P. Bag 603, Kadoma Tel.: (068) 25447 Fax: (068) 25449 Maitengwe Border Post (Please contact Plumtree Office)

Annexure 1 VAT 7 24

ZIMBABWE REVENUE AUTHORITY Return for Remittance/Refund of Value


PART [I] PARTICULARS OF REGISTERED OPERATOR 1. Operators Registered Name 2. Operators Trade Name 3. Cell No / Telephone 4. Postal Address PART [II] DECLARATION OF OUTPUT TAX For Office Use Mat. Code V09 V15 V11 V12 V18 V21 V24 V27 V30 CONSIDERATION (Inclusive of Tax) V33 V34 5. BP Number 6 VAT No 7. Region Code 8. Tax Period (Months) 9. Due Date 10. TIN

*For office use VAT Return No Document No Tax Period Code

7a. Station

VALUE OF SUPPLY (Selling Price Excluding VAT) Dollars Cents OUTPUT TAX Dollars Cents

11. Supply of goods and/or services at standard rate 15%. 12. Supply of goods and/or services at standard rate 17, 5%. 13. Supply of cellular telecommunications services at special rate 22,5% 14. Supply of goods and/or services at 0%. 15. Exempt Supplies ADJUSTMENTS 16. Change of use of goods and/or services. (Goods applied to own use) 17. Change of use of capital goods 18. Bad Debts recovered 19. Debit/Credit Notes (Debit Notes Issued & Credit Notes Received) DEEMED SUPPLY 20. Fringe Benefits Section 8(1)(f) at 15% 21. Fringe Benefits Section 8(1)(f) at 17.5% 22. TOTAL OUTPUT TAX PART [III] INPUT TAX CLAIM

(Add all items from 11 through to 21) [A]

VALUE 23. Local goods and/or services purchased to make taxable supplies 24. Imported goods to make taxable supplies 25. Capital goods purchased to make taxable supplies ADJUSTMENTS 26. Change of use of goods and/or services 27. Change of use of capital goods 28. Bad Debts written off 29. Credit/Debit Notes (Credit Notes Issued & Debit Notes Received) 30. TOTAL INPUT TAX PART [IV] CALCULATION OF VAT PAYABLE/REFUNDABLE V39 V42 V45 V48 V51 V54 V57
(Add all items from 23 through to 29) [B]

INPUT TAX

Dollars 31. TOTAL OUTPUT TAX (Box 22) 32. Less TOTAL INPUT TAX (Box 30) 33. AMOUNT PAYABLE/REFUNDABLE (Box 22) (Box 30) 34. Add Penalty 35. Interest 36. TOTAL 37. Add/Deduct Credit Balance c/f 38. AMOUNT PAYABLE/REFUNDABLE

Cents

Attach a schedule of all Input Tax claimed using the format shown below
Invoice Date Invoice No Suppliers Name Suppliers VAT No Cost Price excluding VAT Input tax claimed Description of goods

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Sign on the reverse side. I CERTIFY THAT THE PARTICULARS IN THIS RETURN ARE TRUE AND CORRECT Name: _______________________________________________________________ Designation: __________________________________________________________ Signature: ____________________________________________________________ OFFICE STAMP 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 December/January February/March April/May June/July August/September October/November Category B Tax Period January/February March/April May/June July/August September/October November/December Category C Tax Period January February March April May June July August September October November December VAT Return No 01 02 03 04 05 06 07 08 09 10 11 12 Due Date 20 February 20 March 20 April 20 May 20 June 20 July 20 August 20 September 20 October 30 November 20 December 20 January VAT Return No. 01 02 03 04 05 06 20 February 20 April 20 June 20 August 20 October 20 December Due Date

VAT Return No. 01 02 03 04 05 06

Due Date 20 March 20 May 20 July 20 September 20 November 20 January

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Annexure II VALUE ADDED TAX PRESCRIBED AMOUNTS


SECTION OF THE ACT 2(1) 7(4) 17(2) 20(5) & (7) 23(1) 23 (3) PRESCRIPTION Annual turnover for commercial rental establishment Lay-bye agreements Taxable supply re: capital goods and services supplier not required to provide a tax invoice Compulsory registration Voluntary registration 1/1/04 $ 2.5m 500 000 1m 5 000 250m Subject to meeting the Commissioner s set conditions 5bn 200m Penalty equal to amount of tax due 1m 1/1/05 $ 2.5m 500 000 1m 5 000 250m Subject to meeting the Commissi oners set conditions 5bn 200m Penalty equal to amount of tax due 1m 1/1/06 $ 10m 2m 5m 20 000 6bn Subject to meeting the Commissioners set conditions 20bn 900m Penalty equal to amount of tax due 5m 1/8/06 $ 10 000 2 000 5 000 20 6m Subject to meeting the Commissioner s set conditions 20m 900 000 Penalty equal to amount of tax due 5 000 1/1/07 $ 120 000 24 000 60 000 1 000 60m Subject to meeting the Commissioner s set conditions 240m 120m Penalty equal to amount of tax due 60 000 1/10/07 $ 4.8m 960 000 2.4m 40 000 2.4bn Subject to meeting the Commissioners set conditions

27(2)(b) & 27(5)(a)i 27(6)(1) 39(3)(a)

Category C Category D Failure to pay tax on due date

9.6m

4.8 Penalty equal to amount tax due 2.4m

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

Minimum amount refundable