Taxable Supply
Means any supply of goods or services on which Value Added Tax (VAT) is chargeable at the standard rate or zero rate.
Standard Rate (15%)
The goods and services taxable at the standard rate include:
- goods or services supplied by any registered operator in the course or furtherance of any trade carried on by such registered operator.
- the importation of any goods into Zimbabwe by any person.
- the supply of any imported services by any person.
Please note that input tax is claimable.
Zero-rated (0%)
Examples of supplies taxed at 0% include:
- Basic commodities like sugar, mealie-meal, milk, etc.
- Export of goods from Zimbabwe to an address in an export country.
- Agricultural supplies like fertilizer, pesticides, seeds, plants, tractors, animal feed and animal remedy.
- Goods for use by disabled persons.
Please note that any input tax incurred in making these zero-rated supplies is claimable by registered operators.
Exempt Supplies
Examples of exempt supplies include:
- water supplied through a pipe for domestic use.
- rates charged by a local authority.
- financial services.
- donated goods or services to an association not for gain.
- residential accommodation.
- agricultural and horticultural equipment or machinery.
- educational services.
- public transport.
- medical services.
Please note that a supplier cannot register for VAT purposes if he/she is dealing exclusively in exempt supplies.