Archives May 2023

Tax Registration in Zimbabwe

In terms of the 2023 Budget statement there was an emphasis on the obligation of taxpayers to register with the Zimbabwe Revenue Authority (ZIMRA) for tax purposes. All taxpayers are mandated to register with ZIMRA within 30 days of being incorporated. This is in terms of the Income tax Act and failure to comply with this provision attracts a penalty of USD $30 per day. This means that for each day that a taxpayer was supposed to be registered but failed to do so, a penalty automatically becomes due and payable at a rate of USD$30 per day.

Tax registration is therefore an important facet of operating a business legally in Zimbabwe. Registration with the Zimbabwe Revenue Authority is very easy when you are working with the right people. At Sabarm Business Solutions the process is made very convenient and efficient and immediately after registration we also offer post tax registration support services where we offer companies tax services such as tax planning, tax computations, tax return preparation, tax return submission, tax clearance generation, tax clearance renewal as well as tax audits and other tax services.

It is mandatory for all companies to register for tax and failure to do so means that the business is in breach of the law incurring penalties each day it is in breach. However these penalties are totally avoidable by just complying with the law.

ZIMRA E-taxes platform

The Zimbabwe Revenue Authority has introduced the E-taxes platform for the convenience of taxpayers. This system is currently working parallel to the E-services platform. The system was introduced to mitigate against the compliance costs associated with submission of returns and as a mitigating measure against technical challenges being faced by taxpayers, especially with the E-Services online filing platform. The system is also convenient as it supports the submission of returns in ZWL and in USD.

The functions of the E-Taxes platform

  • Submission of tax returns
  • Viewing of tax submissions

The system is also being developed to be able to help the taxpayer view their compliance status and send the taxpayer their tax clearance certificate to their master data email. One may wonder who is eligible to register on the E-Taxes platform? Fortunately, Every taxpayer who is registered with the Zimbabwe Revenue Authority is eligible to register on the E-taxes platform and enjoy this convenient system. The registration on this process is much like that of the e-services platform with the exception that with the E-taxes system does not require secondary approval from ZIMRA since the taxpayer will already have been registered for tax.

What is required to register for E-taxes?

  • Taxpayer’s Registered¬† Business Partner Number (BP Number)
  • Taxpayer’s registered email (master data email)
  • Full Name of Public officer
  • Cell number

The E-taxes is currently working parallel to the E-services platform and offers the option to submit tax returns in multi currency. The incidence of failed returns using this system is minimal and with the system still undergoing continuous improvement, the submission of tax returns is bound to be even more convenient.

Change in VAT Rate for 2023

Did you know that the rate of VAT has now changed from the 14.5% which was prevailing, to 15% which is effective from 1 January 2023. This change in VAT means that all transactions have to be treated accordingly and the change prompts an adjustment of fiscal devices so that the VAT is charged correctly. All VAT registered operators are mandated to comply with this directive.

With regards to VAT for registered operators in Category A (period Dec-Jan) the VAT for the period 23A1 comprises of months in which VAT was charged at different rates. The Zimbabwe Revenue Authority has therefore directed that the return be split into two with the one for the month of December being submitted manually while the one for the period January 2023 being submitted using the E-filing or E-taxes platform.