adminannual value of taxable supplies exceeds US$240 000 – are required to record transactions electronically?
All eligible registered operators are, therefore, expected to have commenced the recording of transactions using the fiscalised devices with effect from 1st October 2011. This is in terms of Statutory Instrument (SI) 104 of 2010 (as amended by SI 99 of 2011 which was gazetted on 1st August 2011).
Fiscalised devices are electronic gadgets which contain a “fiscal memory” (a special read only memory which is permanently built into a fiscalised device to store tax information at the time of the sale).
There are three broad categories of the prescribed fiscalised devices. These are Fiscalised Electronic Registers – also referred to as Electronic Tax Registers (ETRs); Fiscalised Printers; and Electronic Signature Devices (ESDs).
Statutory Instrument 104 of 2010 stipulates the devices that a registered operator can use.
VAT registered retail operators who meet the stipulated threshold are required, for the purposes of recording their taxable transactions, to use:
- A fiscalised electronic register; or
- A non-fiscalised electronic register together with a fiscal memory device.
Other registered operators who are not retail operators are required to use:
- An electronic signature device; or
- A fiscalised electronic register; or
- A non-fiscalised electronic register together with a fiscal memory device.
Measures have been put in place to mitigate the cost of acquisition of the devices. This includes a rebate of duty on the importation of approved fiscalised devices by approved suppliers. In addition, operators can claim 50 percent of the cost of acquisition of the fiscalised devices against output tax in terms of section 15 (3) of the VAT Act [Chapter 23:12]. The local supply of the fiscalised electronic registers and fiscal memory devices by approved suppliers to registered operators is zero-rated for VAT purposes (as per the amendment to the VAT Act that was effected by SI 181 of 2010).
Legislation stipulates that failure to comply with the requirement to use fiscalised electronic devices for the recording of all business transactions constitutes an offence and renders the operator liable to a fine or to imprisonment or to both the fine and imprisonment.
Zimra, therefore, urges its valued clients to abide by the provisions of the law with regards to fiscalised recording of taxable transactions.
The list of approved suppliers and the devices they supply was published in the Zimbabwean Government Gazette of 29th July 2011.
For further information, please contact your nearest Zimra office.
Article submitted by Zimra’s Legal and Corporate Services Division. Their contact details are as follows:
Zimbabwe Revenue Authority
Legal and Corporate Services Division
6th Floor, ZB Centre
Cnr First Street/Kwame Nkrumah Avenue
P O Box 4360, Harare
Tel: 04 – 758891-5/790813/752731
Fax: 04 – 774087
E-Mail: [email protected]
Website:www.zimra.co.zw
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