Supply of Goods and Services

In terms of the Value Added Tax (VAT) Act [Chapter 23:12], VAT is levied on the supply of goods and services as well as on the importation and exportation of goods and/or services.

Taxable supplies attract VAT at specified rates of 0%, 5%, 15% or any other rate as may be specified by the Minister  responsible for Finance.

Standard rated supplies

These are supplies of goods and services that are taxable at the rate of 15%.

Most of the goods are standard rated unless they have a specified rate, are zero rated, or exempt.

With effect from 1 January 2010, some items which were formerly zero rated were added on to the list of standard rated products. This means that the supply of goods listed below is now VAT chargeable at the rate of 15%.

Butter, almonds, hazelnuts, walnuts, chestnuts, pistachios, macadamia nuts, margarine (excluding liquid margarine), groundnuts (peanut butter), lotions, rubber gloves, plastic gloves, raincoats, fish fillers, yoghurt and cream.

Zero rated supplies

Zero rated supplies are taxed at the rate of 0%. Zero rating is a way of ensuring that goods are provided free of VAT. A registered operator who supplies zero rated goods or services is allowed to claim input tax credit in relation to that supply. Such an operator must obtain and retain documentary proof of his entitlement to apply the zero rates.

Zero rated supplies are specified in the VAT Act and include:-

  • Basic foodstuffs such as mealie-meal, sugar, milk, meat, salt, bread, etc.
  • Agricultural inputs such as fertilizer, seeds, and pesticides, animal feed, animal remedy, plants, tractors, etc.
  • Exported goods with the exception of un-beneficiated chrome which is taxed at 15%.
  • The supply of day old chicks weighing not more than 185g is now zero-rated with effect from 1st September 2010.
  • With effect from 1st January 2012, the Second Schedule to the Value Added Tax (General) Regulations, 2003, were amended in Part II (through Value Added Tax (General) (Amendment) Regulations, 2011 (No. 30))  in order   to zero rate other goods. This was effected by assigning the following tariff codes to the goods/commodities:

“Heading No.

Commodity Code

Description of Goods



Crude oil, whether or not degummed



Sulphur of all kinds, other than sublimed sulphur, precipitated sulphur and colloidal sulphur.



Ground phosphates



Sulphuric acid; oleum.





Exempt supplies

Exempt supplies are supplies of goods and services on which no VAT is chargeable at all. VAT incurred on goods and services acquired to make exempt supplies shall not be claimed as input tax credit. Traders who exclusively provide exempt supplies are not required to register for VAT purposes. Exempt supplies include the following services and products:

  • medical services
  • educational services
  • rentals from residential properties
  • transport of fare-paying passengers
  • water for domestic use
  • electricity for domestic use
  • fuel

Tax on exportation of beneficiated chrome

With effect from 1st August 2010, the VAT Act was amended by the insertion of Section 12B. The new section broadens the definition of “unbeneficiated chrome” so as to include chrome ore, chrome fines as well as semi-processed chrome concentrates. Un-beneficiated chrome means chrome ore and fines which have not been subjected to the following processes:--

-          crushing, milling and washing to remove the waste material; and

-          the smelting of the resulting chrome concentrate into pellet or ingot form.

Where chrome concentrate has undergone a smelting process which results into pellets and ingot, the chrome concentrate shall be considered to have been beneficiated and will not be liable to the 20% export tax. The rate of export tax on ‘’unbeneficiated chrome’’ has also been increased from 15% to 20%.

The 20% export tax should be declared on the VAT return as output tax and should not be claimed as input tax


ZIMRA Search

ZIMRA Exchange Rates


January 2015
28 29 30 31 1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 31

ZIMRA Newsletter

Tariff Handbook

Tariff HandBook