When one registered operator supplies another registered operator with goods or services, the supplier of those goods or services will levy Value Added Tax (VAT). The VAT incurred by a registered operator is known as Input Tax.

When this registered operator in turn supplies goods or services to other persons (or traders), VAT must be included in the price charged for those goods or services. This is known as Output Tax.

The difference between the output tax collected and input tax incurred for making taxable supplies is the amount of VAT payable to the Zimbabwe Revenue Authority or refundable therefrom.

VAT Formula

VAT Due/Refundable = Output Tax − Input Tax

How VAT Works