A. Value Added Tax/Sales Tax (National Government)
1. Name of Tax, Levied in Terms of Which Act (Name, Number and Year)
Sales Tax, Sales Tax Act (Chapter 23 : 08) (hereinafter referred to as "the Act")
2. Department Responsible for Administration
Zimbabwe Revenue Authority (ZIMRA).
3. Taxpayer
Value Added Tax is charged or levied on goods and services by Registered Operators in the course of their business.
The taxpayer is final consumer of goods or services, whilst the registered operator acts as the collection agent.
A registered Operator means a trader, motor dealer, finance agent or auctioneer who is registered and, in the case of a partnership which is so registered, each member of the partnership shall be regarded as a registered operator.
4. Time When Tax is Levied
5. Included in Tax Base
- The sale of goods or supply of services by a Registered Operator
- Goods comprising stock-in-trade sold by a registered operator otherwise than in the normal
- course of their business
- Goods sold by auctioneers in the course of their business
- Motor vehicles and any other goods sold by motor dealers whether on their own account or on
- behalf of other persons
- Goods sold under a private sales agreement discounted by a finance agent
6. Positive Rates
The Act provides 2 different rates namely:
0% On specified goods and services.
15% on unspecified goods and all services (Finance Act Chapter 23 : 04)
7. List of Goods/Services at Zero Rate
8. List of Goods/Services at Positive Rates Other Than Standard
9. List of Exemptions
The following goods are exempt from Value Added Tax
Section 8 (1)(a) - Exports
8 (1)(b) - Sales of farm produce by a farmer
8 (1)(c) - Sale of minerals by a miner
8 (1)(d) and Sect 13 - Ring sales
8 (1)(f) - as read with S.1 215 of 1994 - services rendered by :
a. Local Authorities
b. Statutory Corporations
c. Financial transactions (services)
d. Health services
e. Construction of immovable property sale or letting immovable property
f. Intellectual property e.g. trademarks, patterns
g. Transport of passengers on stage carriage
- Transport of exempt goods
- Transport of goods by rail
h. The supply of educational services
i. Any services rendered by:
- benefit funds, medical aid societies and pension funds
- any agricultural, mining or commercial institution not operating for a profit or gain of its members
- clubs, societies, institutes and associations organized and operated solely for social welfare, civic improvements, pleasure, recreation or advancement of any profession or trade
- trade unions
- trusts of public character etc
Statutory Instrument 389 of 1992
1st schedule: Part I Food stuffs e.g. uncooked meat
Part II other goods e.g. beverages
Part III other goods medicines
2nd schedule: Importations general
3rd schedule: Sales to and importations by farmers and agricultural co-operatives
4th schedule: Sales to and importations by miners
5th schedule: Letting of goods on hire to persons generally
Statutory Instrument 61 of 1997
Goods and equipment of a capital nature
Statutory Instrument 62 of 1997 amended to SI 389 of 1992
Importations general
An exemption implies that the supplier does not charge or levy sales tax on the supply
10. Tax Period
Paid on or before the fifth day of the following month of the month when the goods are sold or the services are provided (Sect 17)
11. Deferement Schemes/Special Schemes
12. Beneficiary of Revenue
Zimbabwe Government
B. Excise Taxes Alcohol (National Government)
1. Name of Tax Levied in Terms of Which Act (Name, Number and Year)
2. Department Responsible for Administration
Zimbabwe Revenue Authority
3. Taxpayer
4. Included in Tax Base
5. Tax Rate (Tariff Heading, Description, Rate Per Litre or Per Litre of Absolute Alcohol)
6. Rebates
7. Beneficiary of Revenue
C. Excise Taxes Tobacco Products (National Government)
1. Name of Tax Levied in Terms of Which Act (Name, Number and Year)
2. Department Responsible for Administration
3. Taxpayer
4. Included in Tax Base
5. Tax Rate (Tariff Heading, Description, Rate Per Kilogramme, or Per 10 cigarettes/Cigars)
6. Rebates
7. Beneficiary of Revenue
D. Excise Taxes Fuel/Hydrocarbon Oils (National Government)
1. Name of Tax Levied in Terms of Which Act (Name, Number and Year)
Customs and Excise Act Chapter 23 : 02 of 1996
2. Department Responsible for Administration
Zimbabwe Revenue Authority
3. Taxpayer
The final consumer of the fuel is taxpayer, though the local manufacturer/importer is the collecting agent.
4. Included in Tax Base
Excise duty is levied on petroleum oils and other hydrocarbons. The duty is levied as specified on motor spirit, aviation spirit and kerosene.
NOTE - Currently there is no excise duty charged on fuel as there is no longer any locally produced. The duty was previously charged on blended fuel from Chiredzi
5. Tax Rate (Rate of Duty Per Litre, Total Tax Burden as a Percentage of Retail Price)
Aviation Spirit Free
Motor Spirits 52500c/m3
Kerosene (average) 548c/m3
Gas Oil (average) 11800c/m3
6. Rebates/Concessions/Special Schemes
7. Beneficiary of Revenue
E. Excise Taxes - Non Alcoholic Bevarages/Other (National Government)
1. Name of Tax Levied in Terms of Which Act (Name, Number and Year)
2. Department Responsible for Administration
3. Taxpayer
4. Included in Tax Base
5. Tax Rate (Tariff Heading, Rate Per Litre, or Per Kilogramme, or Per Unit)
6. Rebates
7. Beneficiary of Revenue
F. Excise Duty on Luxury Goods - Ad Valorem (National Government)
1. Name of Tax Levied in Terms of Which Act (Name, Number and Year)
Customs duty, Import tax and Excise duty. Customs and Excise Act Chapter 23 : 02 and Statutory Instrument 220 of 2000 (Tariff Book)
2. Department Responsible for Administration
Zimbabwe Revenue Authority
3. Taxpayer
The importer / local manufacturer
4. Included in Tax Base
5. Tax Rate
Part II of the Second Schedule of Statutory Instrument 220 of 2000
The following are some of the excise duties :
Mineral water 25%
Opaque beer (made from malt) 10%
Clear beer (made from malt) 80%
Sparkling wines and other wines 5%
Cider, perry, meal 5%
Liqueurs, Brandy, Whiskies, Rum Gin $70.00/litres of Absolute Alcohol
or
$28.00/L
Cigars, cigarettes, pipe tobacco 85%
Soft drinks 15%
Please note that some goods originating from RSA Comesa are subject to lower rates of duty
Good originating from the Free Trade Area are not subject to duty
6. Special Methods (to deal with the specific needs of some industries)
7. Beneficiary of Revenue
Consolidated Revenue Fund
G. Excise Duty on Other Goods (National Government)
1. Name of Tax Levied in Terms of Which Act (Name, Number and Year)
2. Department Responsible for Administration
3. Taxpayer
4. Included in Tax Base
5. Tax Rate (specify ad valorem or specific)
6. Special Methods (to deal with the specific needs of some industries)
7. Beneficiary of Revenue
H. Air Passenger Duty/ Departure Tax (National Government)
1. Name of Tax Levied in Terms of Which Act (Name, Number and Year)
2. Department Responsible for Administration
3. Taxpayer
4. Included in Tax Base
5. Tax Rate
6. Exemptions
7. Beneficiary of Revenue
I. Financial Transaction Taxes/Stamp Duty (National Government)
1. Name of Tax and Levied in Terms of Which Act (Name, Number and Year
2. Department Responsible for Administration
Zimbabwe Revenue Authority
3. Taxpayer
In general, the holder of the instrument (Stamp Duties)
4. Included in Tax Base
Mortgage bonds, brokers' notes, cheques and insurance policies
5. Tax Rate
6. Exemptions
7. Beneficiary of Revenue
J. Payroll Taxes/Social Security Taxes (National Government)
1. Name of Tax and Levied in Terms of Which Act (Name, Number and Year
2. Department Responsible for Administration
3. Taxpayer
4. Included in Tax Base
5. Tax Rate
6. Exemptions
7. Beneficiary of Revenue
K. Other Taxes (National Government)
1. Name of Tax and Levied in Terms of Which Act (Name, Number and Year
2. Department Responsible for Administration
3. Taxpayer
4. Included in Tax Base
5. Tax Rate
6. Exemptions/Rebates/Deferments/Special Schemes
7. Beneficiary of Revenue
L. Other Taxes 2 (National Government)
1. Name of Tax and Levied in Terms of Which Act (Name, Number and Year
2. Department Responsible for Administration
3. Taxpayer
4. Included in Tax Base
5. Tax Rate
6. Exemptions/Rebates/Deferments/Special Schemes
7. Beneficiary of Revenue