The Zimbabwe Electronic Single Window (ZESW) concept was introduced in 2022 as part of measures to enhance efficient clearance of legitimate traffic and trade facilitation at the country’s ports of entry.

The objective of the ZESW is to improve trade facilitation and to achieve efficiency and effectiveness in pursuing the goals of revenue collection, enforcement of trade laws, social protection, and providing business intelligence to the government.

Zimbabwe provides the gateway to Africa through the north and south corridor, hence efficient trade facilitation at the country’s ports of entry is key for the region’s rapid economic growth.

The ZESW initiative is also in sync with global trends on customs reforms and best practices, as well as a National Development Strategy 1 priority on trade facilitation.

Currently, the country’s ports of entry are manned by various government departments and agencies that have a critical legislative role in the trade facilitation matrix.

Under the Single Window initiative, ZIMRA as the lead agency has the role to ensure the coordination and harmonization of clearance processes at the country's ports of entry.

The project is in its second year and its first stage of implementation is set to be launched by the end of September 2023. The first phase saw an intensive mapping exercise and integration of all key processes on the Single Window platform.

The major beneficiaries of the single window initiative will be importers and exporters, shipping and freight forwarders, the transport sector, customs administration as well as government departments and agencies, whose mandate includes the movement of food, drugs, health, agricultural-related products, and environment.

Once the initiative is commissioned, clients and stakeholders will not be moving from one agency to another as all the regulatory and transitory services, processes and payments will be done online through a single platform, thus faster, better, and transparent.

The major benefits of the Single Window will be compliance among agencies, more efficient and productive use of resources, enhanced collection of fees, duties, and penalties; streamlined and automated compliance to transitory, legislative, and regulatory requirements, and most importantly predictability, convenience, and efficiency to all actors in cross border trade.

Other benefits include enhanced risk analysis, improved security, reductions in corruption and illegal trade activities, enhanced transparency, ease of access to trade statistics, and accountability.

The ZeSW rides on a robust digital platform and ZIMRA is already activating its system in readiness for the integration and data processing from other agencies.

The United Nations Conference on Trade and Development (UNCTAD) is supporting the ZeSW project as part of the harmonization of the customs service delivery initiative.

Other countries that have successfully implemented the single window concept include Jamaica, Rwanda, Uganda, and Kenya.

Commissioner General, Ms Regina Chinamasa, on 14 December 2022 donated grocery items and goodies worth ZWL10 million dollars to Chinotimba Old People’s Home, Rose of Charity Children’s Home and Abangane Shamwari Disability Organisation in Victoria Falls.

In an emotional delivery, the CG expressed gratitude to founders and overseers of the three Homes whom she commended for the great work that they are doing in taking care of the vulnerable.

“You are making positive contributions to our country and in particular Victoria Falls. It takes people with love, patience, generosity and determination to succeed in doing what you have been doing to keep these institutions running and that is why my team and I thought is wise to give you Christmas Cheer, so that this festive season; life is bearable for all of us.

Taking care of just one child can be a daunting task. Yet you are taking care of 39 or more children and the elderly. I am deeply humbled and wish you well in what you are doing. This is your vision and we can only come in and support the work you started with the few groceries we have,’ said Ms. Chinamasa.

The Commissioner General’s Christmas Cheer under the ZIMRA Charity Trust banner benefitted three organisations in Victoria Falls namely Chinotimba Old People’s Home, Rose of Charity and Abangane Shamwari Disability Organisation.

Over the years, ZIMRA has received overwhelming support from the corporate world through the Annual Charity Ball and other fundraising activities to assist the needy in our communities. In 2022, ZIMRA hosted two events, the Charity Ball and Charity Cocktail in an effort to continue to mobilise resources for disadvantaged communities.

The ZIMRA Charity Trust is responsible for managing the corporate social responsibility

programmes and projects of the Authority. The trust continues to spearhead Charity initiatives to better the lives of the less privileged members of society by offering a full scholarship for tertiary students.

The ZIMRA Charity Trust in 2022 put in place the sanitary wear campaign to not only donate sanitary pads to girls in disadvantaged communities. A number of ZIMRA staff responded to the call in 2022 and donated sanitary wear in their individual capacities and the Trust allocated resources in the ZIMRA region to purchase the sanitary wear for disadvantaged girls.

Value Added Tax (VAT) registered suppliers and operators, making a taxable supply to a recipient, must provide that recipient within 30 days from the date of supply, a fiscal tax invoice?

What is a fiscal tax invoice?

A Fiscal Tax Invoice is a tax invoice printed from a fiscal device used by a VAT registered operator with the words ‘Fiscal Tax Invoice’ being on a prominent place, bearing all required features as detailed in Section 20 of the VAT Act.   

 What are the conditions of issuing a fiscal tax invoice?

• Not more than 1 fiscal tax invoice shall be issued for each taxable supply;
• Where the original fiscal tax invoice has been lost, replaced or reprinted, , the copy of the Fiscal Tax Invoice should be clearly marked “copy” on it.

What are the features of a fiscal tax invoice?

The fiscal Tax Invoice must contain the following features as required by Section 20 of the VAT Act as read with paragraph 23 of Finance Act number 7 of 2021:

• The word “Fiscal Tax Invoice” in a prominent place
• The name, address, VAT and Business Partner registration number of the supplier;
• The name and address of the recipient and,
• If the recipient is a registered operator, the VAT and Business Partner registration number of the recipient is required;
• An individual serialised number and the date upon which the fiscal tax invoice is issued;
• A description of the goods or services supplied;
• The quantity or volume of the goods or services supplied;
• The currency used in the transaction
• Either-

1. the value of the supply, the amount of tax charged and the consideration for the supply; or
2. Where the amount of tax charged is calculated by applying the tax fraction to the consideration, the consideration for the supply and either the amount of the tax charged, or a statement that it includes a charge in respect of the tax and the rate at which the tax was charged.

What are the requirements of claiming VAT Input Tax?

With effect from 1 January 2022 VAT registered operators can only claim input tax on valid Fiscal Tax Invoices printed from a fiscal device with words ‘Fiscal Tax Invoice’ in a prominent place and other features  as highlighted above. For the input tax to be allowed as a deduction, a fiscal tax invoice has to be held by a registered operator within the period a return is required to be furnished or 12 months whichever is the longer period.

What are the requirements of claiming expenditure for Income tax purposes on supplies subject to VAT?

With effect from year of assessment beginning 1 January 2023, only a fiscal tax invoice shall be submitted as proof of any expenditure qualifying  as deduction for supply of goods or services subject to VAT.

My Taxes, My Duties: Building my Zimbabwe!!

Disclaimer

This article was compiled by the Zimbabwe Revenue Authority (ZIMRA) 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. 

The Tax and Revenue Management System (TaRMS) is set to revolutionalise the tax administration terrain in the country through an efficient, effective and easy-to-navigate system based on a digital platform.

TaRMS is a product of the Zimbabwe Revenue Authority (ZIMRA)’s business process re-engineering (BPR) programme which was launched in 2022.

The BPR identified digitalization as the key aspect of improved service delivery to ZIMRA’s diverse clients and the configuration of TaRMS commenced in 2022 following an intensive user needs analysis and assessment.

Domestic taxes are crucial to national transformation and economic viability hence an efficient tax collection process is imperative.

TaRMS is being introduced to close the gaps that have historically affected the efficient collection of revenue.

The new system is set to be commissioned in October 2023 and is aligned with the National Development Strategy 1 priorities which include the ease of doing business, widening the tax base, and enabling a digital economy.

A simplified tax system that is effective and efficient increases compliance levels among taxpayers while reducing the cost of collection.

The TaRMS modules are set to enhance taxpayer experience on any device, automate complex tax processes, and improve tax collection.

The system has the capacity to go beyond collecting tax and revenue as it will be able to give full data analytics that will enable timely decision-making while empowering taxpayers to do self-service such as data entry.

Currently, ZIMRA is undertaking a taxpayer data cleansing exercise to ensure robust data integrity. TaRMS will be data-driven and this will result in increased taxpayer engagement, reduced cost of collection, prevention of fraud, and improved voluntary compliance.

By October 2023 when TaRMS goes live, the taxpayers will be able to seamlessly and efficiently process, on any device, taxpayer registration or reregistration; filing and returns processing; payments; refunds among other processes.

The system will also be integrated with enterprise Bus, ASYCUDA, SAP-FI, Registrar of Companies, Deeds & Intellectual Property, Civil Registry, and Banks.

ZIMRA is undergoing an intensive digitalization and transformation agenda and simplifying business processes and accessibility of the service platforms are some of the key objectives.

ZIMRA’s Five Year Strategic Plan envisions maximizing revenue collection, strengthening the institutional image, and increasing voluntary compliance by 2025 and an effective and efficient tax management system is central to the attainment of these strategic objectives.

TaRMS is being funded by a grant from the African Development Bank (AfDB) and by the Government of Zimbabwe.

Remarks by Board Chairman, Mr Antony Mandiwanza

It is my pleasure to present ZIMRA’s Annual performance for the year ending 31 December 2022.

The global economic growth for 2022 slowed down to 3.2 from 6% in 2021 as the rising cost-of-living, tightening financial conditions in most regions, the Russia-Ukraine conflict and the lingering COVID-19 pandemic all weighed heavily on the global growth projections.

Following further relaxation of COVID-19 related restrictions, domestic economic activity relatively improved in 2022 on the back of improved performance in various sectors led by a boom in Agricultural production. 

The improvement was supported by tight monetary and fiscal policy measures, which helped stabilize the domestic economy.  The stability improved the generation of taxable income from companies, employment and trading of goods and services among others.

The Zimbabwe Revenue Authority, hereafter referred to as the Authority, managed to surpass the 2022 Annual target by 26.47%. Between 2021 and 2022, the nominal and real revenue grew by 332.3% and 39.8% respectively, therefore the Authority contributed significantly towards Domestic Resource Mobilisation which is necessary for the implementation of Government’s National Development Strategy (NDS 1) and the National Vision 2030 - “Towards a Prosperous and Empowered Upper Middle Income Society by 2030”. This was achieved through directing management on strategic areas aimed at increasing revenue collection, reducing cost of collection, deepening and widening the tax base, embracing digitalisation, innovation and improving service delivery.  

Further, ZIMRA, implemented some transformative strategic projects to improve the Authority’s ability to deliver on its mandate and support. These include new Commercial and Passenger terminals that were commissioned under the Beitbridge Modernisation project. In addition, heavy-duty scanners and long-range drones were procured to mitigate revenue leakages.

ZIMRA also played a critical role in the Facilitation of Trade and Travel, to improve the country’s Ease of Doing Business index.

In 2023, the Authority will continue implementing the transformative projects that are underway and will be pursuing revenue enhancing measures targeted at increasing the tax base and ensuring high compliance levels with taxation laws. To this effect, the revenue is expected to grow to levels above 19% of GDP.

Governance

There were key changes within the governance structures of the Authority in 2022. These included the appointment of new board members and substantive appointment to executive roles, the details of which will be covered in the main report. A new Commissioner General, Regina Chinamasa, was appointed with effect from 1 September 2022. I once again extend my heartfelt congratulations to her and commit the Board’s support as she directs the day-to-day operations of the Authority. 

Acknowledgement

My appreciation goes to the ZIMRA Board, Management and staff for their dedicated commitment that allowed ZIMRA to fulfil its mandate.

I also express my gratitude to the Minister of Finance and Economic Development, Honourable Professor Mthuli Ncube, the Permanent Secretary, Mr George Guvamatanga, and the entire Ministry for providing timely and adequate policy support during the year. I am truly grateful for the requisite support rendered.

Finally, I would like to thank our valued compliant taxpayers for paying their dues in full and on time.  

I thank you.

Don’t miss out! Invitation to another webinar on Rules of origin and the EU-ESA-EPA, A guide for Zimbabwe businesses. Tuesday 4 April 2023 1000 to 1230.

To access event click  

https://us06web.zoom.us/j/6037320336?pwd=eVNVSDQ2QnFFN3R5NFo3S1QwWmUvZz09

Meeting ID: 603 732 0336

Passcode: sa60np

The Zimbabwe Revenue Authority (ZIMRA) bagged two awards at the prestigious Institute of Directors Zimbabwe (IODZ) Awards, which were held in Harare on 6 July 2023. The ZIMRA Commissioner General, Ms Regina Chinamasa, was crowned Director of the Year 2022 in the State Owned Enterprise and Parastatals Category and Women Director of the Year Award in the Women Director of the Year category respectively.

The Authority was recognised for its crucial role in promoting economic growth through revenue mobilisation and trade facilitation true to its mandate. ZIMRA managed to surpass its 2022 Annual Target by 24.14% with the nominal and real revenue growing 324.59% and 49.46% respectively.  Through Ms Chinamasa’ s leadership and guidance, ZIMRA has continued to consistently surpass revenue targets as set by the Ministry of Finance and Economic Development.

ZIMRA strives for excellent service delivery to its business partners and taxpayers in line with its motto “We are here to serve”. The Authority has harnessed technology to increase convenience to clients and reduce compliance costs for the taxpayers. Systems upgrade such as Asycuda, TARMS, e-Taxes, Single Window, Self-service kiosks have aided in efficient and effective service delivery. In addition to digitalization, other projects like the High Speed Scanners; Drones; Surveillance and Monitoring Centre; and FADMS are at advanced stages.

The Authority has successfully implemented the ZIMRA Contact Centre, which has transformed the tax and customs administration to a wholesome customer-centric experience. The Contact Centre has been well received by ZIMRA’s stakeholders and clients, due to swiftness in turnaround time thanks to a dedicated team of agents. The Client Satisfaction Index results have also shown an improvement in terms of service delivery, where ZIMRA achieved 67% against an annual target of 72% for the year reflective of improved customer service.

ZIMRA is a hub of regional and international tax information exchange by virtue of being a member of the Global Forum on Transparency and Exchange of Information for Tax Purposes. This is a multilateral body, which works in the area of transparency and exchange of information for tax purposes. The Forum is mandated to ensure a rapid and effective global implementation of the standards of transparency and exchange of information for tax purposes. Its work focuses on the exchange of information on request and automatic exchange of financial account information.

Ms Regina Chinamasa successfully implemented the Women in Taxation Forum, with the official launch event being held on 18 March 2022 in Mutare. This platform helps women in the taxation field to participate meaningfully in tax formulation as well as the administration processes. The mandate of the forum is to sufficiently empower and capacitate women and this is achieved through sharing ideas, creating networks and linkages while addressing matters that affect women in the taxation field.

Ms Regina Chinamasa is a staunch advocate of gender sensitive taxation policies evidenced by ZIMRA being part of The United Nations Development Programme (UNDP) Gender Seal, a volunteer certification programme which aims to recognise organisations that have made significant progress in promoting gender equality. The Seal aims to establish standards and performance benchmarks, provide a roadmap, concrete strategies and actions to put into practice institutional commitments; connect organisational structure with results and impact of public policies; and champion good performance and practices, and enhances institutional accountability on gender equality.

The Institute of Directors (IODZ) awards celebrates directors for their exceptional leadership and success. The awards are meant to recognise individuals contribution, strategy and corporate social responsibility.

Zimbabwe has implemented the Authorised Economic Operator (AEO) programme in line with international best practices and the Customs and Excise Act [Chapter 23:02] Section 216B.

An “Authorized Economic Operator” is any entity involved in the movement of goods internationally in accordance with terms and conditions, as well as functions set and approved by the Zimbabwe Revenue Authority as complying with World Customs Organisation (WCO) or equivalent supply chain security standards. Authorized Economic Operators include, inter alia manufacturers, importers, exporters, clearing agents, carriers, consolidators, intermediaries, ports, airports, terminal operators, integrated operators, warehouses, distributors.

The AEO Programme was necessitated by the growing concern about the threat posed through misuse of channels of import and export and this created a need to ensure security in global supply chain in international movement of goods.

Benefits of AEO status

1. General benefits

• Faster movement of cargo through the border/port of entry
• Priority in query resolution
• Facilitation for movement of cargo during periods of trade disruptions
• Reduced demurrage and other related costs
  • Access to dedicated Client Relationship Manager to help companies coordinate and resolve Customs issues and related matters
• Benefit from future Mutual Recognition of AEOs with other countries
• Use of AEO Logo and certificate
• Recognition as a secure and safe business partner
• Improved relations with ZIMRA

2. Importers and Exporters specific benefits

• Fewer physical and document-based controls
• Choice of the place for physical examination
• Priority in processing of refunds, drawback, and other permissions/authorizations;
• Extended Customs services beyond normal working hours;
• Priority response to request for rulings from Customs;

3. Customs Brokers/Clearing Agents specific benefits

• Priority treatment in cargo clearance chain – any consignment declared by an AEO Customs Clearing agent shall be processed prior to declarations for non AEO entities
• Priority documentary examination entries selected for the YELLOW lane
• Priority Physical Examination of cargo selected for the RED lane
• Priority processing of Release Orders and Exit Notes
• Extended Customs services beyond normal working hours;
• Automatic renewal of license/ Extended validity of license conditional upon satisfactory performance in the year

4. Transporters specific benefits
   • Access to dedicated fast lanes at land borders where possible
   • Priority processing of Road Manifest (where applicable)
   • Priority processing of Commercial Temporary Import Permits (CTIP) and Commercial Vehicle Guarantee (CVG), at Crew Desk, including acquittals;

• Release of transport vessels without sealing 

• Release at borders without cargo scanning and any physical examination of cargo where there is no consolidation with non-AEO consignments.

• Extended Customs services beyond normal working hours;
  • Waiver of Customs escorts for movement of goods to another Customs station or Customs bonded warehouse
  • Priority to Customs Supervised transshipments including handover/ takeovers between persons in charge of the vehicles
  • Faster clearance at transit points and fewer checks en route
  • Improved relations with ZIMRA

Who can be an AEO?

Any manufacturers, importers, exporters, clearing agents, carriers, consolidators, intermediaries, ports, airports, terminal operators, integrated operators, warehouses, and distributors who meet standards as outlined in the governing legislation.

Qualification Criteria

Any person interested in getting benefits of the AEO programme shall apply in writing to the Commissioner General for authorization which shall be granted by ZIMRA after detailed pre-certification verification and validation is done. The applicant shall meet the following conditions:

• Be established in Zimbabwe;
• Have appropriate record of compliance with Customs and other relevant laws;
• Have a satisfactory system of managing commercial and, where appropriate, transport records;
• Have proven financial solvency; and
• Ensure that there is general maintenance of approved security and safety standards

The application shall be sent to the ZIMRA office nearest to the applicant.

Obligations of an AEO

The AEO is required to;

• Keep proper records it terms of Section 223 of the Act; and
• Ensure that members of its staff conduct their business in accordance with the procedures of the Act or any instructions given by the Commissioner General; or any of his officers; and
• Ensure a relationship of good faith is maintained by his staff at all times in dealing with the Authority.
• Maintain an accounting system which is in accordance with the Generally Accepted Accounting Practices (GAAP) and which facilitates audit based customs control.
• Allow an officer physical and electronic access to the information and documents as provided for in terms of Section 223 of the Act
• Use compatible e-systems for Customs procedures and commit to regularly upgrade the system.
• Ensure that their premises are in conformity with the appropriate security and safety standards.

Important Notes

• The application for AEO status shall only cover the legal entity of the applicant and will not automatically apply to a group of companies. This implies that if, for example, AEO status is granted to a clearing agent, this will not confer similar status on the agent’s clients being importers or exporters as they will be required to apply separately for that status.
• For maximum benefits to be derived, it would be ideal to have the whole supply chain players obtain the AEO status, that is to say, for example, the clearing agent, the importer, the transporter, the transit shed operator/container depot operator, the distributor and the like.

ATAF Executive Secretary Mr Logan Wort and ATAF Chairman and Commissioner General for Togolais Des Recettes (OTR) Mr Philippe Tchodie, follow proceedings during the ATAF General Assembly in Lagos, Nigeria

A clarion call was made for tax administrations to be state builders and also revenue collectors through improved service delivery, elimination of corruption, transparency and accountability in order to create and retain trust from both the government and taxpayers. 

This was made at the ongoing 7^th African Tax Administration Forum (ATAF) General Assembly which is being held in collaboration with Nigeria’s Federal Inland Revenue Services (FIRS) in Lagos.

Deliberations at the conference centred around the social contract that exists between governments and taxpayers, where governments are expected to improve the lives of its people through provision of social services such as health care, infrastructure and education which influences taxpayer compliance.

In his opening remarks, ATAF Executive Secretary, Mr Logan Wort, said that the pressure of revenue to provide development in African states is increasing due to global shocks.

“The 7^th ATAF General Assembly is taking place under the effects on Covid 19, rising inflation, rising interest rates and the impact of Ukraine-Russian war, global warming and climate change which have all negatively impacted on the lives of people. The challenge of revenue administration is immense as the pressure on revenue to provide resources necessary for redistribution falls on revenue collectors’ shoulders. The ability for governments to provide social services will be jeopardised if we don’t address these challenges”, he said.

Mr Wort said that ATAF focusses on improving domestic revenue mobilisation to build resilience against these global shocks and deliberations at the General Assembly will bring both the challenges and possible solutions to the fore to help design relevant solutions and policies for African governments.

The Zimbabwe Revenue Authority Commissioner General Regina Chinamasa moderated the session on Tax as a Social Contract and Civic Duty – Managing Taxpayers’ Perception. She explored the interplay that exists between African Governments’ provision of public service and tax payment morale.

The Zimbabwe Revenue Authority Commissioner General Regina Chinamasa

“The social contract impacts tax morale and promotes apathy including the numerous factors such as lack of accountability that contribute to the breach in the social contract… The state is tasked with providing public goods, and in return, citizens willingly cede liberty and taxes to the state. In theory, the bilateral nature of this contract is self-reinforcing. On the one hand, the state cannot provide public goods such as security, education, and health services without sufficient tax revenue”, she said.

The 7^th ATAF General Assembly, running from 31 October 2022 to 4 November 2022, is being held under the theme Rethinking Revenue Strategies: The Human Face of Taxation.  The event is being attended by heads and senior officials of African Tax Administrations and Ministries of Finance, representatives of international and continental organisations and development partners, as well as those from the private sector and academic institutions working in the tax arena from the 41 ATAF member countries.

ZIMRA has been a member of ATAF since the establishment of the body in 2009, and has benefited from a variety of ATAF’s capacity building and technical assistance programmes ranging from Transfer Pricing, Revenue Forecasting, Auditing of extractive, agro-processing and financial sectors.