Did you know that in terms of section 24 of the Value Added Tax, Chapter 23:12, any registered operator who intends to cease trading, should notify the Commissioner General of the Zimbabwe Revenue Authority (ZIMRA) in writing, of his decision 21 days prior to the cessation of trade?

The Commissioner General of the Zimbabwe Revenue Authority shall cancel the registration of the respective applicant with effect from the last day of the tax period during which all such trades ceased. In winding up his business, it is likely that the trader will have unsold stock, which one way or the other, he has to dispose of. Once this stock has been properly accounted for as explained in the following paragraphs, the trader may dispose of the stock.

Treatment of stock at hand upon cessation of trade

Where the trader has stock at hand at the time he applies for cancellation, he shall be deemed to have made a supply of such stock as remains at hand as at that date. However it should be noted that if the registered operator was denied input tax deduction, then he shall not be obliged to account for VAT pertaining to the outstanding stock in question.

Reason for deeming Stock at hand supply

Stock on hand at the time of application for deregistration for VAT purposes, where the operator has claimed input tax is a deemed supply. This is so because once a deduction for input tax has been allowed for purchases, output tax must be accounted for. Failure to do so would result the operator benefiting unduly to the prejudice of the fiscus.

Time of Supply

In terms of Section 8 (5) of the VAT Act, where a registered operator’s registration is cancelled and he ceases to be a trader, the  time of supply of  any goods and services is deemed to be immediately before he ceased trading  i.e. immediately before the registration is cancelled by the Commissioner General of ZIMRA.

Value of Supply

In terms of Section 9 (8) of the VAT Act, a registered operator who ceases trading and has stock on hand shall be deemed to have supplied such stock for a consideration in money equal to the lesser of cost or open market value at that time.

Example

Roselyn Pvt Ltd ceased trading on 25 November 2012, stock as at that date was valued at $200,000; however the total cost upon purchase was $180,000. The company shall account for output tax on $180,000 since it is the lesser of the two. Therefore output tax of $23,478.26 (15/115*180000) should be accounted for.

Cancellation of Registration

Once satisfied that the operator has fulfilled all the requirements and that all VAT has been properly accounted for, the Commissioner General of ZIMRA will cancel the registration and withdraw the VAT registration Certificate.

Did you know that computers and other selected information and communication products and gadgets can be imported customs duty free? Customs Duty on the importation of products listed in the table below was scrapped in order to promote the development of the information and communication technology sector.

PRODUCT	TARIFF CODE	CUSTOMS DUTY	VAT
Computer (desktop)	8471 50.00	free	14.5%
Laptop/palm top/I-pad	8471 30.00	free	14.5%
Scanner	8471.60.90	free	14.5%
Printer	8443.32.00	free	14.5%
Braille computers	8471 60.10	free	14.5%
Computer parts and accessories	8473 3000	free	14.5%
Cordless handset	8517 1100	free	14.5%
Base stations/ boosters	8517 6100	free	14.5%
Radar apparatus	8526 1000	free	14.5%
Aircraft communication or navigation apparatus	8525;8526 and 8527	free	14.5%

How to clear the goods

Commercials imports have to be cleared on a Bill of Entry Form 21 through a registered clearing agent. If the goods are less than US$1,000 (one thousand Untied States Dollars) they can be cleared on a Form 49 with or without the use of the services of a clearing agent.

None merchandise goods imported by private individuals (private imports) attract Import Duty at a flat rate of 40 per cent, except in situations where one elects for the use of the appropriate Customs tariff prior to clearance. Private imports can be cleared on a document used for private clearance (Form 49) without the use of a clearing agent.

Which documents need to be attached to the declaration on clearance?

• Invoice from the supplier
• Consignment note/freight statement (where applicable)
• Export documents from the country of export ( where applicable)
• Permits/licences from the relevant issuing authorities, for instance POTRAZ (where applicable)
• Any other relevant documents that may be requested by the Zimbabwe Revenue Authority (ZIMRA)

Please Note:

• The above list is not exhaustive. Customs Duty rates for other products not listed can be obtained upon request from your nearest ZIMRA office, or can be obtained from the ZIMRA website.
• Goods have to be properly declared and entered for clearance at the point of entry.
• VAT is still payable at 14.5 per cent.

1. What is fiscalisation?

 

Fiscalisation refers to configuring of fiscal devices to enable them to record sales and other tax information on the read only fiscal memory at the time of sale for use by the tax authorities in VAT administration.  It was introduced in Zimbabwe on the 8^th of June 2010 through statutory instrument 104 of 2010.

 

The law requires that, all operators who qualify to register under VAT category C i.e. those with turnover of US$240 000.00 and above per annum, record their sales using fiscal memory devices.

 

The effective date for fiscalisation was the 1^st of October 2011, with a possible extension of 90 days.  Every registered operator in category C was expected to be fully fiscalised by that date.  Those who failed to meet the deadline will be liable to penalties in terms of the law

2. Approved Suppliers

 

In terms of Statutory Instrument 104 of 2010 (Sec 9), fiscal memory devices can only be purchased from approved suppliers.  The list of the approved suppliers and the devices they are authorised to supply was published in the Government Gazette of 29 July 2011

3. Roles of the approved suppliers

• To import and distribute approved fiscal devices
• To supply correct devices to operators in terms of models and advise suitability of the devices depending on the nature of business.
• To install and configure the device on the client’s system and to ensure that everything is in good operating order before the device can be used.
• To provide training and back up support to registered operators after enabling the devices to record information in the read only memory.
• To repair faulty devices. 
  • N.B. Repairs can only be done after the registered operator has made a report to Zimra and given a reference number for the fault report.
  • Maintain adequate stocks of devices and spare parts.

 

4. Roles of Registered Operators

i) Before fiscalisation

 

• To acquire appropriate devices from approved suppliers
• To integrate their systems to the device (including interfaces where necessary)
• To register the devices with Zimra by completing and submitted to Zimra Form FRT1.

a)      N.B. Form FRT1 can be obtained from Zimra offices, from the approved supplier or the Zimra website (www.zimra.co.zw).

• To ensure there is back up power supply capable of lasting at least eight hours from the time the power supply ceased.
• To liaise with the supplier on the following issues:

i)        On installation and configure the devices onto the client`s system.

ii)      Programming the gadget into fiscal mode.

iii)    Print test Z-Report indicating that the device is now in fiscal mode.

• To liaise with the Zimra on the following issues:

i)        Confirmation that the device is working and ready to record tax information.

ii)      To seal the device.

(1)   N.B. This indicates that the device is ready for use.

 

ii) After Fiscalisation

• Permanently affix the device registration number on the device.

• Record all sales using the device once it has been fiscalised and not to use any alternative systems without the approval of Zimra.
• Prepare daily, monthly and annual reports of the sales and VAT.
• Keep records for six years
• Keep a record of the servicing of the device
• Ensure that no other person uses the fiscalised device.
• Report all faults to Zimra promptly or no later than eight hours from time of occurrence and get reference numbers for all faults reported.
• To ensure that any breaking of the seal is approved and always done in presence of Zimra.

 

1. 5. Roles of ZIMRA

• Provide client education and attend to any queries raised on fiscalisation.
• Register devices for which fully completed  FRT1 forms have been submitted
• Issue a letter notifying the registered operator of their registration numbers for the devices that have been registered
• Seal devices that have been successfully fiscalised.
• Registering of faults reported by registered operators and issuing of fault report reference numbers.
• Attending to faults where there is need to open the device to remove the seals and replace the seals once the device has been repaired.
• Conduct inspections of the devices to confirm their proper usage.

 

1. 6. Reporting Faults

• If a device is going to be out of use for more than eight hours due to interruption in power supply, theft, technical fault or any other similar reason the registered operator should report to Zimra through the call centres promptly or within eight hours from the time the device went out of use
• On receiving the report Zimra will record it and advise the registered operator the reference number
• If the fault occurs after business’ operating hours the registered operator should make a report by 0800 hrs on the following working day.
• Registered operators should only use alternative systems or manual systems to record sales on approval by Zimra. However, if a report is made and a reference number assigned and Zimra does not give direction on recording of sales the registered operator can use alternative systems after four hours.

 

The following are contact numbers for any queries or faults reporting.

 

REGION	STATION	FISCALISATION SUPERVISOR/ MANAGER	Cellphone	Landline
SCO Kurima	SCO	K Charangwa	0772 177 333	0242-794677 /799712
MCO Kurima	MCO	Sithole Henry	0719 556 550	0242 791503
LCO	LCO	K Furayi	712617643
	LCO	M Muzawazi	772277672
	LCO	R Tarinda	712624292
REGION 3	Mutare	Mwadziwana Edmore	0772 411 115
	Rusape	Madya Wadzanayi	0712 667 811
	Gweru	Murevani Wisper	0772 596 630
	Masvingo	Dzvuke Ian	0772 207 123
	Kwekwe	Mutote Tamuka	0712 431 685
	Kadoma	Ndemera Muranganwa	0772 172 523
	Chiredzi	Ruwuyu Loreen	0772 386 626
	Chipinge	Chimeura Jeff	0775 140 538
REGION 2	Bulawayo	I Tawonezvi	0772 297 621	0292 71891
	Bulawayo	G Nleya	0772 413 768
	Gwanda	S Mungani	0772 168 181
	Beitbridge	G Mahowa	0712 617 659
	Hwange/Victoria Falls	M Masara	0772 172 505	832844476

 

The Zimbabwe Revenue Authority (ZIMRA) hosted its annual Charity Ball on 2^nd November 2012 at The Rainbow Towers Hotel under the theme “ZIMRA: Transforming lives”, and raised nearly US$150,000 which is twice the amount raised for selected charity cases last year.

The Charity Ball saw more than sixty companies supporting ZIMRA’s corporate social responsibility initiatives through sponsorships, buying tables and making donations. This year the four sponsorship levels categorised into Platinum (US$20,000), Diamond (US$15,000), Gold (US$10,000) and Silver (US$5,000) were tabled out for the companies to take.  To beef up the traditional dinner tables purchased, the 2012 Charity Ball received two (2) Platinum, two (2) Gold, and five (5) Silver sponsorships.

Speaking at the occasion, the Guest of Honour and Chief Executive Officer for Nicoz Diamond Mrs Grace Muradzikwa, encouraged corporates to take up an active role in assisting the less privileged.

“Organisations must feel heavily indebted to communities in which they have business interests as part of their adherence to tenets of good corporate governance. Corporate Social Responsibility should, thus, form part of the DNA of any organisation worth its salt,” she said.

“ZIMRA has proven beyond any reasonable doubt that tax collectors are not as stone-hearted as most of us thought they were. The tax collector has even managed to compete with profit making organisations in making a positive impact in community development,” Said Mrs Muradzikwa who commended ZIMRA for setting a good example to help the less fortunate members of society.

The ZIMRA Commissioner General Mr Gershem Pasi thanked the corporate world for their continued support.

“This fundraising initiative takes into consideration that we have a role to play in eradicating poverty and hunger through assisting vulnerable members of our society. As ZIMRA, we could not have done even a fraction of what we are doing now had it not been for your overwhelming support as the corporate world”, said Mr Pasi.

In 2011, the ZIMRA Charity Ball raised over U$70,000.00, and the proceeds have benefitted several selected homes and individuals. The beneficiaries have been assisted in establishing or enhancing their sustainable projects. Proceeds from the 2012 Charity Ball will be channelled towards selected charities from ZIMRA’s regions which cover the whole of Zimbabwe.

Disclaimer: This article was compiled by the Zimbabwe Revenue Authority for information purposes only. ZIMRA shall not accept responsibility for loss or damage arising from use of material in this article and no liability will attach to the Zimbabwe Revenue Authority.