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Herald Reporter
Measures announced in the national budget to get vast segments of the informal sector to register for tax purposes, even if the business owners do not make enough to pay tax, are now being implemented using simple registration platforms along with having manufacturers and wholesalers limited on what they can sell to those who are not tax compliant but able to do any business with the compliant.
The Zimbabwe Revenue Authority (ZIMRA) has stepped up measures to protect value chain integrity and transparency, to counter unfair competition by informal traders, and to get these informal traders to register.
In a statement, ZIMRA notified taxpayers that in terms of Finance (No. 2) Act 13 of 2023, the Minister of Finance, Economic Development and Investment Promotion Mthuli Ncube has introduced the measures spelling out how manufacturers, wholesalers, retailers informal traders and individuals should pay taxes.
The authority said informal traders were being encouraged to register with ZIMRA using the mytaxselfservice.zimra.co.zw platform and be tax compliant.
According to the notice, wholesalers must have a wholesale licence, be registered for VAT and have a valid tax clearance certificate.
“Wholesalers which are not VAT registered and do not have a current tax clearance certificate and retailers are no longer allowed to purchase goods from a manufacturer. There is no limit of the value of goods that can be purchased,” reads the notice.
Retailers are also required to have a retail licence, be registered for VAT and have a current tax clearance certificate and are not limited in terms of the amount of goods they can purchase from wholesalers.
Retailers not registered for VAT, informal traders and individuals will not purchase goods from wholesalers whose value exceeds US$1 000 or the equivalent at the auction rate of exchange.
“Purchases from the same wholesaler should not exceed US$1 000 (or its equivalent in Zimbabwe dollars at the auction rate of exchange that prevailed on the date of the purchase) in a period of not less than 30 days.
On request the purchaser should produces a receipt of goods purchased from the same wholesaler that is dated no earlier than 30 days from the date of the last purchase.
The authority said any person who purchases for the first time from that wholesaler in any calendar year, or if the person concerned cannot produce a receipt in proof of a previous purchase from the same wholesaler, such person can only purchase goods not exceeding US$20 (or its equivalent in local currency at the auction rate of exchange prevailing on the date of the purchase).
Online Reporter