adminValue Added Tax is a consumption tax charged by the registered operators on their costs plus mark-ups. It is paid by the final consumer and the registered operators are only agents.
Registered operators are only required to charge and collect the tax, maintain the necessary records, furnish tax returns and remit the taxes paid by consumers within the set time frames. The VAT due after adjustments for output and input tax, therefore, does not belong to the operators and must be accounted for promptly.
Some registered operators, however, have neglected the need to fulfil their statutory obligations regarding the submission of VAT returns and remittances by the due dates thereby negatively affecting revenue performance.
VAT registered clients are urged to observe statutory obligations relating to the submission of VAT returns as well as payment of the full amount of the tax which is due by the 25th of the calendar month after the end of each tax period.
To address the deficiencies ensure that all operators comply with their obligations, Zimra will be enforcing the following provisions in the VAT legislation:
Failure to meet tax obligation
Failure to remit VAT within the prescribed period the operator becomes liable to penalties equivalent to 100 percent of the outstanding VAT and interest will become payable on the outstanding amount.
Failure to submit the VAT return within the prescribed time frames
The operator will be liable to a penalty of up to US$30 per day for each day that the return remains outstanding.
All VAT registered clients must voluntarily fulfil their tax obligations. All unregistered traders are required to register for VAT as soon as the total value of taxable supplies exceeds the threshold of US$60 000 per annum or once it is noted that the total value of supplies made in the following twelve months will exceed the threshold.
In the event of failure to register, operators will be deemed to have been registered and VAT will be charged in retrospect. In addition, penalties and interest will also be charged on the resultant late payments.
Disclaimer: This article was compiled by the Zimbabwe Revenue Authority for information purposes only. Zimra shall not accept responsibility for loss or damage arising from use of material in this article and no liability will attach to the Zimbabwe Revenue Authority.
To contact Zimra: Visit our website: www. zimra.co.zw; follow us on Twitter:@Zimra11; like us on Facebook: www.facebook.com/Zimra.11. Send us an e-mail: [email protected]. Toll-Free Integrity Hot-Line: 0800 4147 or 0800 4185. Call us (Head Office): 04:758891/5; 790813; 790814; 781345; 751624; 752731.
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