Zimbabwe Revenue Authority : ZIMRA VAT Registration

Organization : Zimbabwe Revenue Authority
Type of Facility : VAT Registration
Country: Zimbabwe

Website : https://www.zimra.co.zw/index.php
Download Forms : https://www.zimra.co.zw/index.php

VAT Registration:

Only operators properly registered for Value Added Tax (VAT) purposes may charge VAT on the supply of goods and services.

Related : ZIMRA Tax Clearance Certificate : www.statusin.org/7406.html

Compulsory registration:
A trader is liable to register for VAT purposes if the value of taxable supplies exceeds or is expected to exceed $60,000 within a period of 12 months. In cases where the operator has reached/exceeded a turnover of $60,000 but failed to register, the Commissioner General of the Zimbabwe Revenue Authority (ZIMRA) may compulsorily register the operator. The operator would be required to pay the VAT due, interest and penalties on the computed debt. Failure to register for VAT constitutes an offence in terms of the VAT Act (Chapter 23:12).

Who may be excluded from registration?:
The following will not be obliged to register for VAT:
** traders who will be solely dealing in exempt supplies
** any person conducting private or recreational pursuit or hobby
** any service provided by an employee to his employer or small traders whose taxable turnover is below US$60,000 per annum

How to register for VAT:
The following information should be submitted:
** Form REV 1 which is fully completed

In the case of a company:
** Current Bank Account
** Certificate of Incorporation
** Memorandum and Articles of Association
** CR6
** CR 14
** Copy of identity documents for at least two directors
** Letter appointing Public Officer and confirmation that the person has got signing powers to the bank accounts
** Proof of residence of directors and public officer e.g. utility bills

Upon registration, every registered operator will be issued with a certificate of registration and such certificate shall be displayed prominently. This will allow for easy identification of traders registered for VAT.

Please Note the REV 1 form can be downloaded from the ZIMRA website (www.zimra.co.zw)

What are the responsibilities of a registered person?:
A registered person is obliged to comply with the following requirements of the VAT Act:
** keep accounting records for at least six years after the tax period to which they relate
** complete and submit VAT returns as per requirement
** calculate and remit the VAT due to the Commissioner General of ZIMRA on or before the due date
** issue tax/fiscal invoices, debit notes or credit notes
** account for VAT if one sells or retains stock or assets.
** advise the Commissioner General of any changes in business details or when one ceases trade.

Cancellation of registration:
Deregistration can be done at the Commissioner’s discretion, on voluntary application, or on cessation of trade and notice being given within 21 days of the date of such cessation of trade. In this case, a VAT 5 form should be completed and submitted to the Commissioner General of ZIMRA. If he/she is satisfied that all obligations have been met in full, he/she shall accordingly deregister the operator.

Registration for fiscalised recording of taxable transactions:
With effect from 1st October 2011, all VAT registered operators under category “C”, whose annual value of taxable supplies exceeds US$240,000 are required to record transactions electronically. This is in terms of Statutory Instrument 104 of 2010 (as amended by SI 99 of 2011 which was gazetted on 1st August 2011). All eligible registered operators were, therefore, required to have commenced the recording of transactions using the fiscalised electronic devices.