VAT (value-added tax ) or general sales tax (GST)  is an indirect tax on the consumption of goods and services in the economy. Revenue is raised for government by requiring certain businesses to register and to charge VAT on the taxable supplies of goods and services.

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)

 

DETAILS	TAX RATE
Income of individual from trade and investments	25%
Income of company or trust	25%
Income of pension fund from trade or investment	15%
Income of licensed investor during first five years of operation	0%
Income of licenced investor after first five years of operation	25%
Income of a holder of special mining lease	15%
Income of a company or trust derived from mining operations	25%
Income for a person engaged in approved BOOT or BOT arrangement: first 5 years	0%
Income of person engaged in approved BOOT or BOT arrangement : second 5 years	15%
Income of industrial park developer before 5th year of operation	0%
Income of industrial park developer after 5th year of operation	25%
Income from manufacturing of a company which exports : –          More than 30% or more of its output but less than 41% –          More than 41% or more of its output but less than 51% –          More than 51% or more of its output	20% 17.5% 15%
Aids levy : Rate is based on tax chargeable	3%