CHAPTER 23:12

VALUE ADDED TAX ACT

Acts 12/2002, 10/2003 (ss. 29-39), 18/2003 (ss. 10-11), 29/2004 (ss. 22-28), 2/2005 (ss. 21-27),
6/2006 (ss. 14-16), 12/2006, 16/2007 (s 19), 3/2009 ( ss. 27-29), 5/2009 (ss 11),10/2009(ss 23-28), 3/2010 (ss 10-
12), 5/2010(ss. 10-12), 8/2011 (s. 15), 9/2011 (ss. 7-8), 4/2012(ss. 4-5), 6/2012 (s. 6), 1/2014 (ss. 13-18), 5/2014
(s. 33), 8/2014 (ss. 9-10), 11/2014 (ss. 19-20), 8/2015 (ss. 9-15), 9/2015 (ss. 8, 15), 3/2016 (Part C), 3/2017 (ss.23-
27), 1/2018 (ss. 22-26), 1/2019 (ss. 14-21), 3/2019, 7/2021, 8/2022, 10/2022, 13/2023 (ss 21-22).

ARRANGEMENT OF SECTIONS
PART I
PRELIMINARY
Section
1. Short title and date of commencement.
2. Interpretation.
3. Determination of “open market value”.
PART II
ADMINISTRATION

4. Act to be administered by Commissioner.

5. Delegation of functions by Commissioner.
PART III
VALUE-ADDED TAX

6. Value-added tax.
7. Certain supplies of goods or services deemed to be made or not made.
8. Time of supply.
9. Value of supply of goods or services.
10. Zero rating.
11. Exempt supplies.
12. Collection of tax on importation of goods, determination of value thereof and exemptions from tax.
12A. Deferment of collection of tax on capital goods.
12B. Collection of tax on exportation of unbeneficiated chrome, determination of value thereof.
12C. Collection of tax on exportation of unbeneficiated hides, determination of value thereof.
12D. Collection of tax on exportation of unbeneficiated platinum, determination of value thereof.
12E. Collection of tax on exportation of rough diamonds, determination of value thereof.
13. Collection of tax on imported services, determination of value thereof and exemptions from tax.
13A Certain imported services deemed to be locally supplied.
14. Accounting basis.
15. Calculation of tax payable.
16. Permissible deductions in respect of input tax.
17. Adjustments.
18. Adjustments in consequence of acquisition of going concern wholly or partly for purposes other than mak-
ing taxable supplies.
19. Goods or services acquired before incorporation.
20. Tax invoices.
21. Credit and debit notes.
22. Irrecoverable debts.
PART IV
REGISTRATION

23. Registration of persons making supplies in the course of trades.

24. Cancellation of registration.
25. Registered operator to notify change of status.
26. Liabilities not affected by person ceasing to be registered operator.
PART V
RETURNS, PAYMENTS AND ASSESSMENTS

27. Tax period.

28. Returns and payments of tax.
29. Special returns.
30. Other returns.
31. Assessments.
PART VI
OBJECTIONS AND APPEALS

32. Objections to certain decisions or assessments.

33. Appeals to Fiscal Appeal Court.
34. Appeals against decisions of Fiscal Appeal Court.
35. Members of Fiscal Appeal Court not disqualified from adjudicating.
36. Payment of tax pending appeal.
37. Burden of proof.
PART VII
PAYMENT, RECOVERY AND REFUND OF TAX

38. Manner in which tax shall be paid.

38A. Civil penalty for breach of section 38(4a)
39. Penalty and interest for failure to pay tax when due.
40. [Repealed].
41. Liability for tax in respect of certain past supplies or importations.
42. Evidence as to assessments.
43. Security for tax.
44. Refunds.
45. Interest on delayed refunds.
45A. Refundsoftaxto exemptedpersons.
46. Calculation of interest payable under this Act.
PART VIII
REPRESENTATIVE REGISTERED OPERATORS

47. Persons acting in a representative capacity.

48. Power to appoint agent.
49. Liability of representative registered operators.
50. Remedies of Commissioner against agent or trustee.
50A. Commissioner may appoint value added withholding tax agents.
PART IX
SPECIAL PROVISIONS

51. [Repealed]
52. Separate persons carrying on same trade under certain circumstances deemed to be single person.
53. Bodies of persons, corporate or unincorporated, other than companies.
54. Pooling arrangements.
55. Death or insolvency of registered operator.
56. Agents and auctioneers.
PART IXA
SPECIAL PROVISIONS APPLICABLE TO SALES OF MOTOR VEHICLES
[Part IXA repealed]
56A. - 56B [Repealed]
PART X
COMPLIANCE

57. Records.
58. General provisions with regard to information, documents or items.
59. Furnishing of information, documents or items by any person.
60. Obtaining of information, documents or items at certain premises.
61. Powers of entry, search, etc.
62. Offences.
63. Offences and penalties in regard to tax evasion.
64. Offences: increased penalty on subsequent conviction.
65. Imposition of fine by Commissioner.
66. Additional tax in case of evasion.
67. Recovery of tax from recipient.
68. Reporting of unprofessional conduct.
PART XA
APPLICATION OF INFORMATION TECHNOLOGY TO ACT

68A. Interpretation in Part XA.

68B. Use of electronic data generally as evidence.
68C. Establishment of computer systems for tax purposes.
68CC. Virtual Fiscalisation System
68D. User agreements.
68E. Registration of registered users and suspension or cancellation of registration.
68F. Digital signatures.
68G. Production and retention of documents.
68H. Sending and receipt of electronic communications.
68I. Obligations, indemnities and presumptions with respect to digital signatures.
68J. Alternatives to electronic communication in certain cases.
68K. Unlawful uses of computer systems.
PART XI
MISCELLANEOUS

69. Prices deemed to include tax.

70. Prices advertised or quoted to include tax.
71. Rounding-off tables.
72. Contract price or consideration may be varied according to rate of tax.
73. Application of increased or reduced tax rate.
74. Tax relief allowable to certain diplomats and diplomatic and consular missions.
75. Forms and authentication and service of documents.
76. Arrangements and directions to overcome difficulties, anomalies or incongruities.
77. Schemes for obtaining undue tax benefits.
78. Regulations.
PART XII
AGREEMENTS

79. Tax agreements.

80. President may suspend tax payable under agreement.
PART XIII
GENERAL

81. Notice of variation of rate of tax.

82. Transitional matters.
83. Act binding on State, and effect of certain exemptions from taxes.
84. Repeal of Cap. 23:08 and savings.
SCHEDULES
First Schedule: [Repealed].

AN ACT to provide for taxation in respect of the supply of goods and services and the importation
and exportation of goods; to provide for the repeal of the Sales Tax Act [Chapter 23:08]; and to pro-
vide for matters connected therewith.
[Date of commencement : 1st January, 2004]
 PART I
PRELIMINARY

1 Short title and date of commencement

This Act may be cited as the Value Added Tax Act [Chapter 23:12].
2 Interpretation
(1) In this Act—
“ancillary transport services” means cargo inspection services, preparation of customs documentation and stor-
age of transported goods or goods to be transported;
“association not for gain” means⎯
(a) any religious institution of a public character; or
(b) any other society, association, organisation or educational institution of a public character, whether
incorporated or not, which⎯
(i) is carried on otherwise than for the purposes of profit or gain to any proprietor, member or
shareholder; and
(ii) is, in terms of its memorandum, articles of association, written rules or other document
constituting or governing the activities of that society, association or organisation—
A. required to utilise any property or income solely in the furtherance of its aims and
objects; and;
B. prohibited from transferring any portion thereof directly or indirectly in any manner
whatsoever so as to profit any person other than by way of the payment in good faith
of reasonable remuneration to any officer or employee of the society, association or
organisation for any services rendered to such society, association or organisation; and
C. upon the winding-up or liquidation of such society, association or organisation, obliged
to give or transfer its assets remaining after the satisfaction of its liabilities to some
other society, association or organisation with objects similar to those of the said soci-
ety, association or organisation;
“Authority” means the Zimbabwe Revenue Authority established by section 3 of the Revenue Act;
“business day” means any day which is not a Saturday, Sunday or public holiday;
“capital goods” means any asset, or any component of any asset, which is of a character subject to a deduction
of expenditures incurred as provided in terms of paragraphs (c) and (f) of subsection (2) of section 15 of the
Taxes Act;
“cash value”, in relation to the supply of goods supplied under an instalment credit agreement, means—
(a) where the seller or lessor is a banker or financier, an amount equal to or exceeding the sum of the
cost to the banker or financier of the goods, including any cost of erection, construction, assembly or installa-
tion of the goods borne by the banker or financier and the tax leviable in terms of paragraph (a) of subsection
(1) of section six in respect of such supply by the banker or financier; or
(b) where the seller or lessor is a dealer, an amount equal to or exceeding the price, including tax, at
which the goods are normally sold by him for cash or may normally be acquired from him for cash, including
tax and any charge, including tax, made by the seller or lessor in respect of the erection, construction, assembly
or installation of the goods if such charge is financed by the seller or lessor under the instalment credit agree-
ment;
“Charging Act” means the Finance Act [Chapter 23:04] or any other enactment by which credits and rates of
tax are fixed;
“clearing agent” means a person licensed or required to be licensed in terms of section 216A of the Customs
and Excise Act [Chapter 23:02];
[Definition inserted by Act 8 of 2015]
“commercial rental establishment” means—
(a) accommodation in any hotel, motel, inn, boarding house, hostel or similar establishment in which
lodging is regularly or normally provided to five or more persons at a daily, weekly, monthly or other periodic
charge; or
(b) accommodation in any house, flat, apartment or room, other than accommodation in respect of
which paragraph (a) or (c) apply which is regularly or systematically let or held for letting as residential ac-
commodation for continuous periods not exceeding forty-five days in the case of each occupant of such house,
flat, apartment or room, if the total annual receipts and accruals from the letting of all thereof have exceeded
the prescribed amount or there are reasonable grounds for believing that such total annual receipts and accruals
will exceed that amount; or
 (c) accommodation in any house, flat, apartment, room, caravan, houseboat, caravan or camping site
which constitutes an asset, including a leased asset, of a business undertaking or a separately identifiable part
of a business undertaking carried on by any person who—
(i) lets or holds for letting as residential accommodation five or more houses, flats, apartments,
rooms, caravans, houseboats, camping or caravan sites in the course of such business un-
dertaking;
(ii) derives total annual receipts and accruals from the letting of all such houses, flats, apart-
ments, rooms, caravans, houseboats, camping and caravan sites which exceed the pre-
scribed amount or there are reasonable grounds for believing that such total annual receipts
and accruals will exceed that amount; and
(iii) regularly or normally lets or holds for letting as residential accommodation such houses,
flats, apartments, rooms, caravans, houseboats, caravans or camping sites for continuous
periods not exceeding forty-five days in the case of each occupant; or
(d) ….
[Paragraph repealed by section 29 of Act 10 of 2003]
but does not include—
(a) accommodation in any boarding establishment or hostel operated by any employer solely or mainly
for the benefit of the employees of such employer or of a connected person in relation to such employer or of
their dependants, provided such establishment or hostel is not operated for the purpose of making profits from
such establishment or hostel for the employer or such connected person;
(b) accommodation in any boarding establishment or hostel operated by any local authority otherwise
than for the purpose of making profits from such establishment or hostel;
“Commissioner”, subject to section five, means the Commissioner-General of the Authority;
“connected persons” means—
(a) any natural person, including the estate of a natural person if such person is deceased or insolvent,
and—
(i) any near relative of that natural person, being a near relative as defined in section 2 of the
Taxes Act or the estate of any such relative if the relative is deceased or insolvent; or
(ii) any trust fund in respect of which any such near relative or such estate of such near relative
is or may be a beneficiary; or
(b) any trust fund and any person who is or may be a beneficiary in respect of that fund; or
(c) any partnership or business registered in terms of the Corporations Act; and⎯
(i) any member thereof; or
(ii) any other person where that person and a member of such partnership or business registered
in terms of the Corporations Act, as the case may be, are connected persons in terms of this
definition; or
(d) any company other than a business registered in terms of the Corporations Act, and—
(i) any person, other than a company, where that person, his spouse or minor child or any trust
fund in respect of which that person, his spouse or minor child is or may be a beneficiary,
is separately interested or two or more of them are in the aggregate interested in five per
centum or more of the company’s paid-up capital or five per centum or more of the com-
pany’s equity share capital or five per centum or more of the voting rights of the sharehold-
ers of the company, whether directly or indirectly; or
(ii) any other company the shareholders in which are mainly the same persons as the sharehold-
ers in the first-mentioned company, or which is controlled by the same persons who control
the first-mentioned company; or
(iii) any person where that person and the person referred to in subparagraph (i) or his spouse
or minor child or the trust fund referred to in that subparagraph or the other company re-
ferred to in subparagraph (ii) are connected persons in terms of this definition; or
(e) any separate trade, branch or division of a registered operator which is separately registered as a
registered operator under section fifty-one and any other such trade, branch or division of the registered oper-
ator; or
(f) any branch, division or separate trade of an association not for gain which is deemed by subsection
(5) of section twenty-three to be a separate person for the purposes of that section and any other branch, division
or separate trade of that association, whether or not such other branch, division or separate trade is a registered
operator; or
(g) any person and any superannuation scheme referred to in the definition of “financial services” the
members of which are mainly the employees or office holders or former employees or office holders of that
person;
“consideration”, in relation to the supply of goods or services to any person, includes any payment made or to
be made, including any deposit on any returnable container and tax, whether in money or otherwise, or any act
or forbearance, whether or not voluntary, in respect of, in response to, or for the inducement of, the supply of
any goods or services, whether by that person or by any other person, but does not include any payment made
by any person as an unconditional gift to any association not for gain:
Provided that a deposit, other than a deposit on a returnable container, whether refundable or not,
given in respect of a supply of goods or services shall not be considered as payment made for the supply unless
and until the supplier applies the deposit as consideration for the supply or such deposit is forfeited;
“consideration in money” includes consideration expressed as an amount of money;
“Corporations Act” means the Private Business Corporations Act [Chapter 24:11];
“Customs Act” means the Customs and Excise Act [Chapter 23:02];
“domestic goods and services” means the provision to a natural person of the right to occupy for residential
purposes the whole or part of the accommodation provided in any commercial rental establishment, including,
where it is provided as part of the right of occupation, the provision of—
(a) cleaning and maintenance;
(b) electricity, gas, air conditioning or heating;
(c) a telephone, television set, radio, satellite dish, decoder or other similar article;
“donated goods or services” means goods or services which are donated to an association not for gain and are
intended for use in the carrying on or carrying out of the purposes of that association;
“dwelling” means any building, premises, structure or any other place, or any part thereof, used predominantly
as a place of residence or abode of any natural person or which is intended for use as a place of residence or
abode of any natural person, together with any appurtenances or structure belonging thereto and enjoyed there-
with, but does not include a commercial rental establishment;
“employee organisation” means an organisation in which a number of employees in any particular undertaking,
industry, trade, occupation or profession are associated together for the purpose of regulating relations between
themselves or some of them and their employers or some of their employers or mainly for that purpose, disre-
garding the provision of sickness, accident or unemployment benefits for the members of the organisation or
for the widows, children, dependants or nominees of deceased members;
“electronic commerce operator” means an operator selling, providing or delivering services from outside Zim-
babwe by the use of a telecommunications network or other electronic means (and whether mediated by com-
puters, mobile telephones or other devices) to customers or users in Zimbabwe;”.
[Definition inserted by Act 8 of 2022]
“entertainment” means the provision of any food, beverages, accommodation, entertainment, amusement, rec-
reation or hospitality of any kind by a registered operator whether directly or indirectly to anyone in connection
with a trade carried on by him;
“exempt supply “means a supply that is exempt from tax under section eleven;
“export country” means any country other than Zimbabwe and includes any part of Zimbabwe declared in
terms of subsection (1) of section 20 of the Export Processing Zones Act [Chapter 14:07], to be an export
processing zone;
“exported”, in relation to any movable goods supplied by any registered operator under a sale or an instalment
credit agreement, means—
(a) consigned or delivered by the registered operator to the recipient at an address in an export country
as evidenced by documentary proof acceptable to the Commissioner; or
(b) delivered by the registered operator to the owner or charterer of any foreign-going aircraft when
such aircraft is going to a destination in an export country and such goods are for use or consumption in such
aircraft; or
(c) removed from Zimbabwe by the recipient, who is a resident of Zimbabwe, for conveyance to an
export country in accordance with an export incentive scheme approved by the Minister;
(d) removed from Zimbabwe by the recipient, who is not a resident of Zimbabwe, for conveyance to
an export country, subject to such conditions as may be set by the Commissioner by notice in a statutory
instrument;
“farm land”means land used for agricultural and pastoral activities but does not include⎯
(a) land referred to as CommunalLand in terms of section 3 of the Communal Land Act [Chapter
20:04];
(b) land which is a municipal area, town area or local government area as defined in the Urban Coun-
cils Act [Chapter 29:15];
(c) a town ward of a rural district council or an area that has been declared a specified area in terms
of the Rural District Councils Act [Chapter 29:13]; or
 (d) land in the area of any township as defined in the Land Survey Act [Chapter 20:12]; or
(e) State land the layout of which has been approved in terms of section 43 of the Regional, Town and
Country Planning Act [Chapter 29:12];
“financial lease” means a written agreement for the letting and hiring of capital goods to be used by the pur-
chaser for the purposes of his trade, where the seller is—
(a) a banking institution registered or required to be registered in terms of the Banking Act [Chapter
24:20]; or
(b) a building society registered or required to be registered in terms of the Building Societies Act
[Chapter 24:02];
[Definition inserted by section 29 of Act 10 of 2003]
“financial services” means—
(la) any service provided by a banking institution registered or required to be registered in terms of the
Banking Act [Chapter 24:20] (No. 9 of 1999); or
[Paragraph inserted by Act 1 of 2018]
(a) any service provided by or on behalf of a banking or other institution that is a participant in a
payment system registered in terms of the National Payment Systems Act [Chapter 24:23] (No.21 of 2001);
or
[Paragraph substituted by Act 3 of 2017]
(b) any service provided by a building society registered or required to be registered in terms of the
Building Societies Act [Chapter 24:02]; or
(c) the exchange of banknotes or other currency of any country, except where they are to be used as
collectors’ items; or
(d) the provision of any deposit, loan or credit, including the provision of any guarantee, indemnity,
security or bond in respect of the performance of obligations related to a deposit, loan or credit; or
(e) the issue or transfer of ownership of any share in a company or interest in a private business cor-
poration; or
(f) services rendered by an insurer registered in terms of the Insurance Act [Chapter 24:07]; or
(g) the services of an actuary, insurance agent, insurance broker as defined in the Insurance Act [Chap-
ter 24:07] or fund administrator as defined in the Pension and Provident Funds Act [Chapter 24:09], to the
extent that those services are rendered to or on behalf of an insurer registered in terms of the Insurance Act
[Chapter 24:07] or to or on behalf of a pension fund registered in terms of the Pension and Provident Funds
Act [Chapter 24:09].
[Paragraph substituted by section 39 of Act 12 of 2006]
“fiscalised electronic register” means an electronic sales register having such features as may be prescribed;
[Definition inserted by Act 8 of 2014]
“fiscalised electronic register” and “fiscal memory device” .......
[Definition repealed by Act 8 of 2014]
“fiscalised electronic register” ….
[Definition repealed by Act 8 of 2014]
“fiscalised recording regulations” ….
[Definition repealed by Act 8 of 2014]
“fixed date” means the date fixed in terms of subsection (2) of section one as the date of commencement of
this Act;
“fixed property” means land other than farm land, together with improvements affixed thereto, and includes
any share or unit in a company which confers a right to or an interest in the use of immovable property, and,
in relation to a property time-sharing scheme, any time-sharing interest, and any real right in any such land,
unit, share or time-sharing interest;
“foreign-going aircraft” means any aircraft engaged in the transportation for reward of passengers or goods
wholly or mainly on flights between airports in Zimbabwe and airports in export countries or between airports
in export countries;
“goods” means corporeal movable things, fixed property and any real right in any such thing or fixed property,
but excluding—
(a) money;
(b) any right under a mortgage bond or pledge of any such thing or fixed property; and
(c) any stamp, form or card which has a money value and has been sold or issued by the State for the
payment of any tax or duty levied under any Act of Parliament, except when subsequent to its original sale or
issue it is disposed of or imported as a collector’s piece or investment article;
“imported services” imported services” means a supply of services that is made by a supplier who is not resi-
dent in Zimbabwe or carries on business outside Zimbabwe to a recipient who is a resident of Zimbabwe to
the extent that such services are utilised or consumed in Zimbabwe;
 [Definition substituted by Act 1 of 2019]
“input tax”, in relation to a registered operator, means—
(a) tax charged under section six and payable in terms of that section by—
(i) a supplier on the supply of goods or services made by that supplier to the registered opera-
tor; or
(ii) the registered operator on the importation of goods by him; or
(iii) the registered operator on the importation of services by him or her; or
[Subparagraph inserted by Act 3 of 2019]
(b) an amount equal to the tax fraction, being the tax fraction applicable at the time the supply is
deemed to have taken place, of the lesser of any consideration in money given by the registered operator for
or the open market value of the supply, not being a taxable supply, to him by way of a sale on or after the 1st
January, 2004, by a resident of Zimbabwe of fixed property in respect of the acquisition of which stamp duty
is, in terms of the Stamp Act, payable or would have been payable had an exemption from stamp duty, whether
in terms of the Stamp Act or any other Act of Parliament, not been applicable:
Provided that such amount shall not exceed the amount of stamp duty, which is or would
have been payable in respect of such acquisition; and
(c) an amount equal to the tax fraction of the consideration in money deemed by subsection 9(13) to
be for the supply, not being a taxable supply, by a debtor to the registered operator of goods repossessed under
an instalment credit agreement:
Provided that the tax fraction applicable under this paragraph shall be the tax fraction
applicable at the time of supply of the goods to the debtor under such agreement as contemplated in paragraph
(c) of subsection (3) of section eight, where the goods or services concerned are acquired by the registered
operator wholly for the purpose of consumption, use or supply in the course of making taxable supplies or,
where the goods or services are acquired by the registered operator partly for such purpose, to the extent, as
determined in accordance with section sixteen, that the goods or services concerned are acquired by the regis-
tered operator for such purpose;
[Paragraph amended by Act 3 of 2019]
“instalment credit agreement” means any agreement entered into on or after the 1st January, 2004,whereby
any goods consisting of corporeal movable goods or of any machinery or plant, whether movable or immova-
ble—
(a) are supplied under a sale under which—
(i) the goods are sold by the seller to the purchaser against payment by the purchaser to the
seller of a stated or determinable sum of money at a stated or determinable future date or in
whole or in part in instalments over a period in the future; and
(ii) such sum of money includes finance charges stipulated in the agreement of sale; and
(iii) the aggregate of the amounts payable by the purchaser to the seller under such agreement
exceeds the cash value of the supply; and
(iv) the⎯
A purchaser does not become the owner of those goods merely by virtue of the delivery
to or the use, possession or enjoyment by him thereof; or
B seller is entitled to the return of those goods if the purchaser fails to comply with any
term of that agreement; or
(b) are supplied under a lease under which—
(i) the rent consists of a stated or determinable sum of money payable at a stated or determi-
nable future date or periodically in whole or in part in instalments over a period in the
future; and
(ii) such sum of money includes finance charges stipulated in the lease; and
(iii) the aggregate of the amounts payable under such lease by the lessee to the lessor for the
period of such lease, disregarding the right of any party thereto to terminate the lease before
the end of such period, and any residual value of the leased goods on termination of the
lease, as stipulated in the lease, exceeds the cash value of the supply; and
(iv) the lessee accepts the full risk of destruction or loss of, or other disadvantage to, those goods
and assumes all obligations of whatever nature arising in connection with the insurance,
maintenance and repair of those goods while the agreement remains in force;
“insurance” means insurance or guarantee against loss, damage, injury or risk of any kind whatever, whether
pursuant to any contract or law, and includes reinsurance; and “contract of insurance” includes a policy of
insurance, an insurance cover, and a renewal of a contract of insurance:
Provided that nothing in this definition shall apply to any insurance specified in the definition of
“financial services”;
“invoice” means a document notifying an obligation to make payment;
“local authority” means—
(a) any rural district council, municipal council or town council;
(b) any other body, council, board, committee or institution established or deemed to be established
by or under any law which has functions similar to those of the councils referred to in paragraph (a) and which
may levy rates on the value of immovable property within its area of jurisdiction or receive payments for
services rendered or to be rendered as approved by the Minister responsible for local government; and
(c) any catchment or subcatchment council constituted in terms of the Water Act [Chapter 20:24] or
any other institution which has powers similar to those of a local authority;
“Minister” means the Minister of Finance and Economic Development or any other Minister to whom the
President may, from time to time, assign the administration of this Act;
“money” means—
(a) coins of current mass or bank notes which the Reserve Bank of Zimbabwe has issued in Zimbabwe
in accordance with Part VI of the Reserve Bank of Zimbabwe Act [Chapter 22:15] and which have not been
demonetized;
(b) any⎯
(i) coin, other than a coin made wholly or mainly from a precious metal, or bank note which
is the currency of any country, other than Zimbabwe, and which is used or circulated or is
intended for use or circulation as currency;
(ii) bill of exchange, promissory note, bank draft, postal order or money order;
except when disposed of or imported as a collector’s piece, investment article or item of numismatic in-
terest;
“motor dealer” means a registered operator who makes a taxable supply of any motor vehicle in the ordinary
course of trade which continuously or regularly supplies motor vehicles, whether such supply is made by way
of or solely under an instalment credit agreement or by way of a rental agreement at an economic rental con-
sideration;
[Definition inserted by section 29 of Act 10 of 2003]
“motor vehicle”…..
[Definition repealed by section 31 of Act 28of 2005]
“non-governmental organisation means” …
[Definition repealed by section 21 of Act 2 of 2005]
“open market value” in relation to the supply of goods or services, means the open market value thereof deter-
mined in accordance with section three;
“output tax”, in relation to any registered operator, means the tax charged under paragraph (a) of subsection
(1) of section six, in respect of the supply of goods and services by the registered operator;
“person” includes any public authority, local authority, company or body of persons, whether corporate or
unincorporated, the estate of any deceased or insolvent person and any trust fund;
“postal licensee” means any person, other than the successor postal company, licensed in terms of the Postal
and Telecommunications Act [Chapter 12:05] to provide the postal services;
“precious metal” means gold, silver, platinum, iridium and other metal of the platinum group, and any other
metal which the Minister, after consultation with the Minister responsible for mines, may by notice in the
Gazette declare to be a precious metal for the purpose of this Act;
“prescribed amount” means any amount prescribed by the Charging Act or in regulations made in terms of
section seventy-eight;
“prescribed rate” in relation to any interest payable in terms of this Act, means the prescribed rate of interest
fixed in terms of section seventy-eight or, where such rate has not been so prescribed, at the rate fixed in terms
of the Prescribed Rate of Interest Act [Chapter 8:10];
“private voluntary organisation” means an organisation registered in terms of the Private Voluntary Organisa-
tions Act [Chapter 17:05] and approved by the Commissioner-General by notice in a statutory instrument.
[Definition reinserted by section 21 of Act 2 of 2005]
“public authority” means any department or division of the public service, and includes the Zimbabwean De-
fence Force, the Zimbabwean Republic Police and the Prisons and Correctional Service Commission;
[Definition amended by Act 3 of 2016]
“recipient”, in relation to any supply of goods or services, means the person to whom the supply is made;
“registered operator” means any person who is or is required to be registered under this Act:
Provided that where the Commissioner has under section twenty-three or fifty-three determined the
date from which a person is a registered operator that person shall be deemed to be a registered operator from
that date;
“registration number”, with respect to any registered operator, means the number allocated to him by the Com-
missioner for the purposes of this Act;
“rental agreement” means any agreement entered into before, on or after the 1st January, 2004, for the letting
of goods, other than a lease referred to in paragraph (b) of the definition of “instalment credit agreement” in
this section or a “financial lease” as defined in the repealed Act;
“repealed Act” means the Sales Tax Act [Chapter 23:08];
“Reserve Bank” means the Reserve Bank of Zimbabwe established by the Reserve Bank of Zimbabwe Act
[Chapter 22:15];
“resident of Zimbabwe” means a person, other than a company, who is ordinarily resident in Zimbabwe or a
company which is incorporated in Zimbabwe:
Provided that any other person or any other company shall be deemed to be a resident of Zimbabwe
to the extent that such person or company carries on in Zimbabwe any trade or other activity and has a fixed
or permanent place in Zimbabwe relating to such trade or other activity;
“residential rental establishment” means any commercial rental establishment contemplated in paragraph (a)
or (c) of the definition of “commercial rental establishment” in which not less than seventy per centum of the
persons to whom domestic goods and services are supplied reside, or are expected to reside, for a period of
forty-five days or longer;
“returnable container” means any container belonging to a class of containers in relation to which, at the time
of delivery of the contents thereof, ownership of that container is not transferred to the recipient of the contents
and a specifically identified amount is usually charged as a deposit by the supplier of the contents upon the
express undertaking of the supplier that upon the return of that container such deposit will be refunded or
allowed as a credit to such recipient or any other person returning such container;
“Revenue Act” means the Revenue Authority Act [Chapter 23:11];
“sale” means an agreement of purchase and sale and includes any transaction or act whereby or in consequence
of which ownership of goods passes or is to pass from one person to another;
“second-hand goods” means goods which were previously owned and used but does not include—
(a) animals; and
(b) gold coins as contemplated in paragraph (i) of subsection (1) of section ten;
“services” means anything done or to be done, including the granting, assignment, cession or surrender of any
right or the making available of any facility or advantage, but excludes the supply of goods, money or any
stamp, as contemplated in paragraph (c) of the definition of “goods”;
“short-term insurance” means any insurance other than life insurance, whether provided pursuant to any con-
tract or law, including any policy of insurance, an insurance cover, and a renewal of a contract of insurance,
and includes reinsurance;
[Definition inserted by Act 8 of 2015]
“Stamp Act” means the Stamp Duties Act [Chapter 23:09];
“successor postal company” means the company licensed in terms of section 113 of the Postal and Telecom-
munications Act [Chapter 12:05] to provide the postal services previously carried on by the Posts and Tele-
communications Corporation established by the repealed Posts and Telecommunications Corporation Act
[Chapter 12:02];
“supplier”, in relation to any supply of goods or services, means the person supplying the goods or services;
“supply”includes all forms of supply, irrespective of where the supply is effected, and any derivative of “sup-
ply” shall be construed accordingly;
“tax” means any tax imposed by this Act;
“tax fraction” means the fraction calculated in accordance with the formula⎯
r
100+ r
in which formula “r” represents the rate of tax applicable under subsection (1) of section six;
“tax invoice” or “fiscal tax invoice” or other word or phrase denoting an invoice of tax for the making of
taxable supplies, means a document provided by a registered operator, or printed by a fiscalised electronic
register or fiscal memory device used by a registered operator, for the purpose of section 20;
[Definition substituted by Act 4 of 2012]
“tax period”, in relation to a registered operator, means a tax period determined in terms of section twenty-
seven;
“taxable supply”means any supply of goods or services which is chargeable with tax under paragraph (a) of
subsection (1) of section six, including tax chargeable at the rate of zero per centum under section ten;
“Taxes Act” means the Income Tax Act [Chapter 23:06];
“trade” means—
 (a) in the case of any registered operator, other than a local authority, any trade or activity which is
carried on continuously or regularly by any person in Zimbabwe or partly in Zimbabwe and in the course or
furtherance of which goods or services are supplied to any other person for a consideration, whether or not for
profit, including any trade or activity carried on in the form of a commercial, financial, industrial, mining,
farming, fishing or professional concern or any other concern of a continuing nature or in the form of an
association or club;
(b) without limiting the applicability of paragraph (a) in respect of any activity carried on in the form
of a commercial, financial, industrial, mining, farming, fishing or professional concern—
(i) the making of supplies by any public authority of goods or services which the Minister,
having regard to the circumstances of the case, is satisfied are of the same kind or are similar
to taxable supplies of goods or services which are or might be made by any person other
than such public authority in the course or furtherance of any trade, if the Commissioner,
in pursuance of a decision of the Minister under this subparagraph, has notified such public
authority that its supplies of such goods or services are to be treated as supplies made in the
course or furtherance of a trade;
(ii) the activities of any private voluntary referred to in the definition of "private voluntary
organisation” in section 2(1) of the Private Voluntary Organisations Act [Chapter 17:05];
[Subparagraph substituted by section 21 of Act 2 of 2005]
(c) in the case of a registered operator which is a local authority⎯
(i) the supply of water;
(ii) the supply of services consisting of the drainage, removal or disposal of sewage or garbage;
(iii) the supply of goods or services incidental to or necessary for the supply of goods or services
in respect of which sub-paragraph (i) or (ii) apply;
(iv) the making of supplies of goods or services in the course of any business carried on by such
local authority, if—
A. such supplies are of the same kind or are similar to taxable supplies of goods or ser-
vices which are or might be made by any person other than such local authority in the
course or furtherance of any trade; and
B. the revenue normally derived by such local authority for its own benefit from making
such supplies, together with any grant or subsidy paid to that local authority by the
State or any person for the purposes of such business, is, or may reasonably be ex-
pected to be, sufficient to fund the expenditure, excluding expenditure of a capital na-
ture but including a reasonable provision for depreciation in the value of the assets of
the business by reason of wear and tear and obsolescence, incurred by that local au-
thority in the production of such revenue:
Provided that—
I. anything done in connection with the commencement or termination of any such trade or
activity shall be deemed to be done in the course or furtherance of that trade or activity;
II. the supply outside Zimbabwe of goods or services by any concern from any branch or main
business thereof where such branch or main business is permanently located at premises
outside Zimbabwe, if—
(a) the branch or main business can be separately identified; and
(b) an independent system of accounting is maintained by the concern in respect of the
branch or main business,
shall be deemed not to be effected in the course or furtherance of any trade or activity
carried on by such concern;
III. the rendering of services by an employee to his employer in the course of his employment
or the rendering of services by the holder of any office in performing the duties of his office,
shall not be deemed to be the carrying on of a trade to the extent that any amount constitut-
ing remuneration as contemplated in the definition of “remuneration” in paragraph 1 of the
Thirteenth Schedule to the Taxes Act is paid or is payable to such employee or office holder,
as the case may be, and shall not apply in relation to any employment or office accepted by
any person in carrying on any trade carried on by him independently of the employer or
concern by whom the amount of remuneration is paid or payable;
IV. any activity carried on by a natural person essentially as a private or recreational pursuit or
hobby or any activity carried on by a person other than a natural person which would, if it
were carried on by a natural person, be carried on essentially as a private or recreational
pursuit or hobby shall not be deemed to be the carrying on of a trade;
V. any activity, shall to the extent to which it involves the making of exempt supplies, be
deemed not to be the carrying on of a trade;
 “trust fund” means any fund consisting of cash or other assets, the administration and control of which is
entrusted to any person acting in a fiduciary capacity by any person, whether under a deed of trust or by
agreement, or by a deceased person under a will made by that person;
“unconditional gift” means a payment voluntarily made to any association not for gain for the carrying on or
the carrying out of the purposes of that association and in respect of which no identifiable direct valuable
benefit arises or may arise in the form of a supply of goods or services to the person making that payment or
in the form of a supply of goods or services to any other person who is a connected person in relation to the
person making the payment, but does not include any payment made by a public authority or a local authority.
(2) For the purposes of subsection (1)—
(a) “cheque” means a cheque as defined in section 72 of the Bills of Exchange Act [Chapter14:02], a
postal order, a money order, a traveller’s cheque, or any order or authorisation, whether in writing, by electronic
means, or otherwise, to a financial institution to credit or debit any account;
(b) “currency” means any banknote or other currency of any country, other than when used as a col-
lector’s piece, investment article, item of numismatic interest, or otherwise than as a medium of exchange;
(c) “debt security” means any interest in or right to be paid money that is, or is to be, owing by any
person, but does not include a cheque;
(d) “equity security” means any interest in or right to a share in the capital of a juristic person or the
interest of a member in a private business corporation incorporated in terms of the Corporations Act;
(e) “life insurance policy” means any policy of insurance issued in the ordinary course of carrying on
life insurance business as defined in section 3 of the Insurance Act [Chapter 24:07];
(f) “participatory security” includes a unit in a unit trust scheme but does not include an equity secu-
rity, a debt security, money or a cheque;
(g) “superannuation scheme” means a scheme whereby provision is made for the payment or granting
of benefits by a benefit fund or pension fund, as defined in section 2 of the Taxes Act;
(3) Notwithstanding subsection (2), the terms “debt security”, “equity security” and “participatory security”
shall not include any of the following⎯
(a) a life insurance policy or any other policy of insurance;
(b) any ownership or interest in land, other than an interest as mortgagee;
(c) an interest in a superannuation scheme.
(4) Notwithstanding anything in this section, the term “financial services” does not include—
(a) the cession, assignment, transfer or other supply of any right to receive payment in relation to any
taxable supply where, as a result of any such cession, assignment, transfer or supply, output tax in relation to
that taxable supply would not be or become attributable to any tax period for the purposes of subsection (3) of
section fifteen; or
(b) the transfer of any interest in or a right to be paid money that is, or is to be, owing by any person
under a rental agreement.
3 Determination of “open market value”
(1) For the purposes of this section—
(a) “similar supply”, in relation to a supply of goods or services, means any other supply of goods or services
that, in respect of the characteristics, quality, quantity, functional components, materials and reputation of the
first mentioned goods or services, is the same as, or closely or substantially resembles, that supply of goods or
services;
(b) the open market value of a supply shall include any tax charged under paragraph (a) of subsection (1)
section six on that supply.
(2) For the purposes of this Act, the open market value of any supply of goods or services at any date shall be
the consideration in money which the supply of those goods or services would generally fetch if supplied in similar
circumstances at that date in Zimbabwe, being a supply freely offered and made between persons who are not
connected persons.
(3) For the purposes of this Act the open market value of any consideration, not being consideration in money,
for a supply of goods or services shall be ascertained in the same manner, with any necessary modifications, as the
open market value of any supply of goods or services is ascertained under this section.
(4) Where the open market value of any supply of goods or services cannot be determined under subsection
(2), the open market value shall be the consideration in money which a similar supply would generally fetch if
supplied in similar circumstances at that date in Zimbabwe, being a supply freely offered and made between persons
who are not connected persons.
(5) Where the open market value of any supply of goods or services cannot be determined in terms of subsec-
tions (2) or (4), the open market value shall be determined in accordance with a method approved by the
Commissioner which provides a sufficiently objective approximation of the consideration in money which could be
obtained for that supply of those goods or services.
PART II
ADMINISTRATION

4 Act to be administered by Commissioner

The Commissioner shall be responsible for carrying out the provisions of this Act.
5 Delegation of functions by Commissioner
(1) Subject to the Revenue Act, the Commissioner may delegate to any officer employed in the Authority any
function that is conferred or imposed upon him by this Act, other than this power of delegation.
(2) An officer to whom a function has been delegated in terms of subsection (1) shall exercise it subject to the
Commissioner’s directions.
(3) A delegation in terms of subsection (1)—
(a) may be revoked or modified by the Commissioner at any time; and
(b) shall not preclude the exercise by the Commissioner of the function so delegated.
(4) Anything done by an officer in the exercise of a function delegated to him by the Commissioner in terms
of subsection (1)—
(a) may be set aside or revised, subject to this Act, by that officer or by the Commissioner; and
(b) shall be deemed, until set aside, to have been done by the Commissioner
(5) This section shall be construed as being additional to, and not as derogating from, the Commissioner’s
powers of delegation under any other law.
PART III
VALUE-ADDED TAX

6 Value added tax

(1) Subject to this Act, there shall be charged, levied and collected, for the benefit of the Consolidated Revenue
Fund a tax at such rate as may be fixed by the Charging Act on the value of—
(a) the supply by any registered operator of goods or services supplied by him on or after the 1st January, 2004,
in the course or furtherance of any trade carried on by him:
Provided that this paragraph shall not apply to the supply of second-hand motor vehicles that are
subject to special excise duty on sales or disposals of second-hand motor vehicles referred to in section 172B
of the Customs and Excise Act [Chapter 23:02];
[Proviso inserted by Act 6 of 2006]
and
(b) the importation of any goods into Zimbabwe by any person on or after the 1st January, 2004; and
(c) the supply of any imported services by any person on or after the 1st January, 2004; and
(d) goods and services sold through an auctioneer (as defined in section 56(6)) by persons who are not regis-
tered operators.
Provided that this paragraph shall not apply to the supply of second hand motor vehicles that are
subject to special excise duty on sales or disposals of second-hand motor vehicles referred to in section 172B
of the Customs and Excise Act [Chapter 23:02].
[Paragraph repealed by Act 8 of 2005 and reinserted by Act 16 of 2007 and proviso inserted by Act 10 of 2009]
(2) Except as otherwise provided in this Act, the tax payable in terms of⎯
(a) paragraph (a) of subsection (1) shall be paid by the registered operator referred to in that paragraph; and
(b) paragraph (b) of subsection (1) shall be paid by the person referred to in that paragraph; and
(c) paragraph (c) of subsection (1) shall be paid by the recipient of the imported services; and
(d) paragraph (d) of subsection (1) shall be paid by the auctioneer.
[Paragraph repealed by Act 8 of 2005 and reinserted by Act 16 of 2007]
(3) Where any goods manufactured in Zimbabwe, being of a class or kind subject to excise duty under Part II
of the Second Schedule of the Customs Act, have been supplied at a price which does not include such excise duty
and tax has become payable in respect of such supply in terms of paragraph (a) of subsection (1), a tax shall be
levied and paid on a value which is the sum of the value for excise purposes plus the excise duty, or such other value
as may be determined by the Minister by notice in a statutory instrument.
(4) The tax payable in terms of subsection (3), shall be paid by the person liable in terms of the Customs Act
for the payment of the said excise duty.
(5) Subject to this Act, any provision of the Customs Act relating to the clearance of goods which are subject
to the payment of excise duty and payment thereof shall, mutatis mutandis, be effected as if enacted in terms of this
Act.
7 Certain supplies of goods or services deemed to be made or not made
(1) For the purposes of this Act, where—
(a) goods acquired, manufactured, assembled, constructed or produced by a person are sold, under a power
exercisable by another person, in or towards satisfaction of a debt owed by the person whose goods are sold;
and
(b) the person whose goods are sold has not furnished, to the person exercising the power of sale, a statement
in writing that the supply of those goods would not be a taxable supply if those goods were sold by the person
whose goods are sold, and stating fully the reasons why that supply would not be a taxable supply;
those goods shall be deemed to be supplied in the course of a trade.
(2) For the purposes of this Act, where a person ceases to be a registered operator, any goods (other than any
goods in respect of the acquisition of which by the registered operator a deduction of input tax under subsection (3)
of section fifteen was denied in terms of subsection (2) of section sixteen or would have been denied if those sections
had been applicable prior to the 1st January, 2004,) or right capable of assignment, cession or surrender which in
either case then forms part of the assets of his trade, shall be deemed to be supplied by him in the course of his trade
immediately before he ceased to be a registered operator, unless the trade is carried on by another person who in
terms of section fifty-five is deemed to be a registered operator:
Provided that⎯
(a) where such right is so deemed to be supplied that supply shall be deemed to be a supply of a service;
(b) this subsection shall not apply to any such goods or right in respect of the acquisition of which by such
registered operator a deduction in terms of subsection (3) of section fifteen has not been allowed or will not be
allowed, where such registered operator was registered pursuant to an application for registration under section
twenty-three due to a bona fide error on the part of any person.
(3) For the purposes of this Act, any door to door sale, whereby credit is granted at a place other than the
creditor’s normal place of business and the agreement of sale is subject to a “cooling off” period within which the
purchaser may cancel the agreement without prejudice to himself, shall be deemed not to be a supply of goods or
services unless the credit receiver has failed to exercise the right to terminate the agreement within the period avail-
able to him under the agreement.
(4) For the purposes of this Act
(a) any lay-by agreement, whereby goods are sold for a consideration not exceeding twelve thousand five
hundred ZW dollars (twenty-five US dollars) or the prescribed amount and are reserved by deposit for delivery
when the purchase price or a determined portion thereof is paid, shall not be deemed to be a supply of goods or
services unless and until the goods are delivered to the purchaser;
[Paragraph (a) amended by Act 7 of 2021 and Act 8 of 2022]
(b) where such agreement is cancelled or terminates for any other reason and the seller retains any amount paid
by the purchaser or recovers any amount owing by the purchaser under such agreement, the seller shall be
deemed to have supplied a service in respect of such agreement.
(5) For the purposes of this Act, a registered operator shall be deemed to supply services to any public authority
or local authority to the extent of any payment made by the authority concerned to or on behalf of the registered
operator in respect of the taxable supply of goods or services by the registered operator to any person.
(6) For the purposes of this Act, the disposal of a trade as a going concern, or a part thereof which is capable
of separate operation, shall be deemed to be a supply of goods made in the course or furtherance of such trade.
(7) For the purposes of this Act, except subsection (3) of section fifteen, where a registered operator receives
any indemnity payment under a contract of insurance or is indemnified under a contract of insurance by the payment
of an amount of money to another person, that payment or indemnification, as the case may be, shall, to the extent
that it relates to a loss incurred in the course of carrying on a trade, be deemed to be consideration received for a
supply of services performed on the day of receipt of that payment or on the date of payment to such other person,
as the case may be, by that registered operator in the course or furtherance of his trade:
Provided that⎯
(a) this subsection shall not apply in respect of any indemnity payment received or indemnification under a
contract of insurance where the supply of services contemplated by that contract is not a supply subject to tax
under paragraph (a) of subsection (1) of section six;
(b) this subsection shall not apply in respect of any indemnity payment received by a registered operator under
a contract of insurance to the extent that such payment relates to the total reinstatement of goods, stolen or
damaged beyond economic repair, in respect of the acquisition of which by the registered operator a deduction
of input tax under subsection (3) of section fifteen was denied in terms of subsection (2) of section sixteen or
would have been denied if these sections had been applicable prior to the 1st January, 2004,.
(8) For the purposes of this Act, where any registered operator in carrying on a trade in Zimbabwe transfers
goods or provides any service to or for the purposes of his branch or main business in respect of which paragraph
II of the proviso to the definition of “trade” in section two are applicable, the registered operator shall be deemed to
supply such goods or service in the course or furtherance of his trade.
(9) For the purposes of this Act, where any goods are repossessed under an instalment credit agreement, a
supply of such goods shall be deemed to be made by the debtor under such instalment credit agreement to the person
exercising his right of possession, and where such debtor is a registered operator the supply shall be deemed to be
made in the course or furtherance of his trade unless such goods did not form part of the assets held or used by him
for the purposes of his trade.
(10) For the purposes of this Act, a supply of the use or right to use or the grant of permission to use any goods,
whether with or without a driver, pilot, crew or operator, under any rental agreement, instalment credit agreement,
charter party, agreement for charter or any other agreement under which such use or permission to use is granted,
shall be deemed to be a supply of goods.
(11) For the purposes of this Act, where any person bets an amount on the outcome of a race or on any other
event or occurrence, the person with whom the bet is placed shall be deemed to supply a service to such first-
mentioned person.
(12) For the purposes of this Act, except subsection (3) of section fifteen, where any registered operator who
makes taxable supplies of services contemplated in subsection (11), receives any amount paid by any other regis-
tered operator as a prize or winnings in consequence of a supply of such services made by the last-mentioned reg-
istered operator to the first-mentioned registered operator, the first-mentioned registered operator shall be deemed
to supply a service to the last-mentioned registered operator.
(13) For the purposes of this Act, where a single supply of goods or services would, if separate considerations
had been payable, have been charged with tax in part at the rate applicable under paragraph (a) of subsection (1) of
section six and in part at the rate applicable under section ten, each part of the supply concerned shall be deemed to
be a separate supply.
(14) The supply by a registered operator of—
(a) any goods (other than fixed property acquired prior to the 1st January, 2004, by a registered operator who
is a natural person if such property was used by him mainly as his private residence and no deduction of any
amount has been made by him under subsection (3) of section fifteen in respect of such property) or services,
where such goods or services were acquired or imported by him partly for the purpose of consumption, use or
supply in the course of making taxable supplies, including supplies which would have been taxable supplies if
section six of this Act had been applicable prior to the 1st January, 2004,, and were held or utilised by him
partly for the said purpose immediately prior to the supply by him of such goods or services, shall be deemed
to be made wholly in the course or furtherance of his trade;
(b) fixed property acquired prior to the 1st January, 2004, by such registered operator, being a natural person,
shall be deemed to be made otherwise than in the course or furtherance of his trade:
Provided that—
(a) such property was used by him prior to such supply mainly as his private residence; and
(b) no deduction of any amount has been made by him under subsection (3) of section fifteen in respect
of such property.
(15) For the purposes of this Act, where, together with the supply of a share coupled with an exclusive right of
occupation as defined in section 27 of the Deeds Registries Act [Chapter 20:05] referred to in the interpretation of
“fixed property” in subsection (1) of section two, any amount of the total loan obligation of the company or associ-
ation administering the property concerned is allocated or any amount of the loan obligation thus allocated is dele-
gated, or any interest in or right to be paid money that is, or is to be, owing by the company or association under its
loan obligation is transferred to any person who is or will be a shareholder of such company or association, such
allocation, delegation or transfer, as the case may be, shall be deemed to form part of the supply of such share.
(16) For the purposes of the definition of “input tax” in subsection (1) of section two and subsections (4) and
(5) of section seventeen, as applicable to any company or association referred to in subsection (15), any taxable
supply of a share referred to in subsection (15) made on or after a date fixed by the Minister by notice in the Gazette
by a developer who registers a notarial deed referred to in section 27 of the Deeds Registries Act [Chapter 20:05],
shall be deemed to have been made by the company or association created by or under such deed, to the extent
that⎯
(a) the supply of such share to such developer was not a taxable supply by such company or association to such
developer; or
(b) such developer was not or will not in terms of subsection (3) of section fifteen be entitled to make a deduc-
tion of “input tax” in section two in respect of the supply of such share to him.
(17) For the purposes of this Act, where an importation of goods is deemed to have been made by an agent in
the circumstances contemplated in subsection (4) of section fifty-six, such agent shall be deemed to make a supply
of goods to the recipient of the supply by the principal.
8 Time of supply
(1) For the purposes of this Act, a supply of goods or services shall, except as is otherwise provided for in this
Act, be deemed to take place—
(a) at the time an invoice is issued by the supplier or the recipient in respect of that supply; or
(b) at the time any payment of consideration is received by the supplier in respect of that supply; or
(c) in the case of a supply of a moveable good, at the time of its removal from the place of sale; or
(d) in the case of a supply of an immoveable goods, at the time the recipient takes possession of it; or
(e) in the case of a supply of a service at the time the service is performed;
whichever time is earlier.
[Subsection substituted by Act 1 of 2019]
(1a) For the purposes of this Act, a supply of imported services shall, except as is otherwise provided for in
this Act, be deemed to take place—
(a) at the time an invoice is issued by the supplier or the recipient in respect of that supply; or
(b) at the time any payment of consideration is received by the supplier in respect of that supply; or
(c) at the time the service is performed;
whichever time is earlier.
[Subsection inserted by s 19 of Act 13 of 2023]
(2) A supply of goods or services shall be deemed to take place—
(a) where the supplier and the recipient are connected persons—
(i) in the case of a supply of goods which are to be removed, at the time of the removal; and
(ii) in the case of a supply of goods which are not to be removed, at the time when they are
made available to the recipient; and
(iii) in the case of a supply of services, at the time the services are performed:
Provided that this paragraph shall not apply in any case where an invoice is issued in respect of that
supply or any payment is made in respect of that supply on or before—
(a) the day on which the return is furnished for the tax period during which that supply would,
but for this proviso, have been made; or
(b) the last day prescribed by this Act for furnishing the return for the tax period during which
that supply would, but for this proviso, have been made;
(b) where that supply is a supply to which subsection (3) of section seven refers, on the day after the last day
of the period during which the recipient may exercise the right to terminate the agreement;
(c) where that supply is a supply to which subsection (4) of section seven refers, at the time at which the goods
are delivered to the recipient:
Provided that in any case in which a supply of services is deemed to take place under paragraph
(b) of subsection (4) of section seven, that supply of services shall be deemed to take place at the time that the
agreement of sale is cancelled or terminates;
(d) where the supply is for a consideration in money received by the supplier by means of any machine, meter
or other device operated by a coin or token—
(i) in the case of such supplier, at the time any such coin or token is taken from that machine, meter
or other device by or on behalf of the supplier; and
(ii) in the case of the recipient of such supply, at the time the coin or token is inserted into that machine,
meter or other device by or on behalf of the recipient;
(e) where subsection (8) of section seven applies in respect of a transfer of goods or the provision of any service
by a registered operator to his branch at the time the goods are delivered to such branch or the service is per-
formed, as the case may be.
(3) Notwithstanding anything in subsection (1) or (2)—
(a) where goods are supplied under any rental agreement or where services are supplied under any agreement
or law which provides for periodic payments, they shall be deemed to be successively supplied for successive
parts of the period of the agreement or as determined by such law, and each of the successive supplies shall be
deemed to take place when a payment becomes due or is received, whichever is the earlier;
(b) where and to the extent that⎯
(i) goods are supplied progressively or periodically under any agreement or law which provides for
the consideration for that supply to be paid in instalments or periodically and in relation to the progressive or peri-
odic supply of those goods; or
(ii) goods or services supplied directly in the construction, repair, improvement, erection, manufacture,
assembly or alteration of goods are supplied under any agreement or law which provides for the consideration for
that supply to become due and payable in instalments or periodically in relation to the progressive nature of the
work;
 those goods or services shall be deemed to be successively supplied, and each such successive supply shall
be deemed to take place whenever any payment in respect of any supply becomes due, is received, or any
invoice relating only to that payment is issued, whichever is the earliest;
(c) where goods are supplied under an instalment credit agreement, that supply shall, subject to paragraph (b)
of subsection (2), be deemed to take place at the time the goods are delivered or the time any payment of
consideration is received by the supplier in respect of that supply, whichever time is earlier;
(d) where goods consisting of fixed property or any real right therein are supplied under a sale, that supply
shall be deemed to take place⎯
(i) where registration of transfer of the goods is effected in a deeds registry, on the date of such reg-
istration; or
(ii) on the date on which any payment is made in respect of the consideration for such supply;
whichever date is earlier;
(e) where goods consisting of fixed property or any real right therein are supplied under a sale, that supply
shall be deemed to take place, where no transfer has occurred and no payment is made in consideration, on the
date of the agreement;
(f) where any supply of a service is deemed to be made as contemplated in subsection (11) of section seven,
the service shall be deemed to be supplied to the extent that payment of any amount of the bet is made, and
each such supply shall be deemed to take place whenever any payment in respect of such supply is received by
the supplier;
(g) where any supply of a service is deemed to be made as contemplated in subsection (12) of section seven,
the supply shall be deemed to take place whenever any amount is paid out as a prize or winnings by the supplier
of the services contemplated in subsection (11) of section seven.
(4) Subject to paragraph (a) of subsection (2) and subsection (6), where goods are supplied under an agreement,
other than an instalment credit agreement or rental agreement, and the goods or part of them are appropriated under
that agreement by the recipient in circumstances where the whole of the consideration is not determined at the time
they are appropriated, that supply shall be deemed to take place when and to the extent that any payment in terms
of the agreement is due or is received or an invoice relating to the supply is issued by the supplier or the recipient,
whichever is the earliest.
(5) Where any goods or any right capable of assignment, cession or surrender is deemed to be supplied by a
registered operator in the course of his trade as contemplated in subsection (2) of section seven the time of supply
shall be deemed to be the time contemplated in that section.
(6) Where any supply of goods or services is deemed to be made as contemplated in subsection (1) of section
seventeen the time of supply shall be deemed to be the time that the goods or services are applied as contemplated
in the said subsection.
(7) The supply of goods or services which is deemed to be made by any registered operator as contemplated
in subsection (3) of section seventeen shall be deemed to take place at the end of the month in respect of which the
cash equivalent of the benefit or advantage concerned, as determined under paragraph (f) of subsection (1) of section
8 of the Taxes Act, or a portion of such cash equivalent, is in terms of the Thirteenth Schedule to that Act required
to be included in the remuneration of the employee or office holder to whom the benefit or advantage is granted or,
where such cash equivalent is not required to be included in the remuneration of the employee or office holder in
terms of the said Thirteenth Schedule, on the last day of the year of assessment in terms of the said Act, as applicable
to that employee or office holder, during which the benefit or advantage was granted to him.
(8) Where a supply of repossessed goods is deemed by subsection (9) of section seven to be made by a debtor
under an instalment credit agreement, the time of that supply shall be deemed to be the day on which the goods are
repossessed or, where the debtor may under any law be reinstated in his rights and obligations under such agreement,
the day after the last day of any period during which the debtor may under such law be so reinstated.
(9) Where any supply of goods is deemed to be made as contemplated in subsection (17) of section seven, that
supply shall be deemed to take place at the time the tax payable on importation of the goods is paid by the agent.
9 Value of supply of goods or services
(1) For the purposes of this Act this section shall apply for determining the value of any supply of goods or
services.
(2) The value to be placed on any supply of goods or services shall, save as is otherwise provided in this section,
be the value of the consideration for such supply, as determined in accordance with subsection (3), less so much of
such value as represents tax:
Provided that—
(a) there shall be excluded from such consideration the value of any postage stamp as defined in section 2 of
the Postal and Telecommunications Act [Chapter 12:05], when used in the payment of consideration for any
service supplied by the successor postal company or any postal licensee;
 (b) where the portion of the value of the said consideration which represents tax is not accounted for separately
by the registered operator, the said portion shall be deemed to be an amount equal to the tax fraction of that
consideration.
(3) For the purposes of this Act the value of any consideration referred to in this section shall be—
(a) to the extent that such consideration is a consideration in money, the amount of the money; and
(b) to the extent that such consideration is not a consideration in money, the open market value of that consid-
eration.
(4) Where—
(a) a supply is made by a person for no consideration or for a consideration in money which is less than the
open market value of the supply; and
(b) the supplier and recipient are connected persons in relation to each other; and
(c) if a consideration for the supply equal to the open market value of the supply had been paid by the recipient,
he would not have been entitled under subsection (3) of section fifteen to make a deduction of the full amount
of tax in respect of that supply,
the consideration in money for the supply shall be deemed to be the open market value of the supply:
Provided that this subsection shall not apply to the supply of a benefit or advantage of employment contem-
plated in subsection (3) of section seventeen.
(5) Where goods or services are deemed to be supplied by a registered operator in terms of subsection (2) or
(8) of section seven, the supply shall be deemed to be made for a consideration in money equal to the lesser of—
(a) the cost to the registered operator of the acquisition, manufacture, assembly, construction or production of
such goods or services, including—
(i) any tax charged in respect of the supply to the registered operator of such goods or services or of
any components, materials or services utilised by him in such manufacture, assembly, construction or production;
(ii) where such goods or any right referred to in subsection (2) of section seven, when held by the
registered operator, constituted trading stock as defined in section 2 of the Taxes Act, any further costs, including
tax, incurred by him in respect of such goods or right;
(iii) any costs, including tax, incurred by the registered operator in respect of the transportation or de-
livery of such goods or the provision of such services in connection with the transfer of such goods or the provision
of such services as contemplated in subsection (8) of section seven; and
(iv) where such goods or services were acquired under a supply in respect of which the consideration
in money was in terms of subsection (4) of this section deemed to be the open market value of the supply or would
in terms of that provision have been deemed to be the open market value of the supply were it not for the fact that
the recipient would have been entitled under subsection (3) of section fifteen to make a deduction of the full amount
of tax in respect of that supply, such open market value to the extent that it exceeds the consideration in money for
that supply; or
(b) the open market value of such supply.
(6) For the purposes of this Act, where goods are supplied under an instalment credit agreement, the consider-
ation in money for the supply shall be deemed to be the cash value of that supply.
(7) Where goods or services are deemed by subsection (1) of section seventeen to be supplied by a registered
operator, the supply shall, subject to subsection (8), be deemed to be made for a consideration in money equal to
the open market value of such supply.
(8) Where goods or services are deemed by subsection (2) of section seventeen to be supplied by a registered
operator, the supply shall be deemed to be made for a consideration in money determined in accordance with the
formula⎯
A × (B — C)
in which formula—
“A”represents the lesser of⎯
(a) the cost, including any tax forming part of such cost, to the registered operator of the acquisition,
manufacture, assembly, construction or production of those goods or services:
Provided that⎯
(i) where the goods or services were acquired under a supply in respect of which the consid-
eration in money was in terms of subsection (4) deemed to be the open market value of the
supply or would in terms of that section have been deemed to be the open market value of
the supply were it not for the fact that the recipient would have been entitled under subsec-
tion (3) of section fifteen to make a deduction of the full amount of tax in respect of that
supply, the cost of those goods or services shall be deemed to include such open market
value to the extent that it exceeds the consideration in money for that supply; or
(ii) where the registered operator was at some time after the acquisition of such goods or ser-
vices deemed by subsection (4) of section seventeen to have been supplied with such goods
 or services, the amount which was represented by “B” in the formula contemplated in sub-
section (4) of section seventeen when such goods or services were deemed to be supplied
to the registered operator; or
(iii) where the registered operator was at some time after the acquisition of the goods or services
required to make an adjustment contemplated in subsections (2) or (5) of section seventeen,
the amounts then represented by “A” in the said formula or by “B” in the formula contem-
plated in subsection (5) of section seventeen respectively, in the most recent adjustment
made under subsections (2) or (5) of section seventeen by the registered operator prior to
such deemed supply of goods or services; and
(b) the open market value of the supply of those goods or services at the time any reduction in the
extent of the consumption or use of the goods is deemed by subsection (6) of section seventeen to take place;
“B” represents the percentage that the use or application of the goods or services for the purposes of making
taxable supplies was of the total use or application of such goods or services determined under subsection (1)
of section sixteen, subsections (4) or (5) of section seventeen or this subsection, whichever was applicable in
the period immediately preceding the twelve month period contemplated in “C”; and
“C” represents the percentage that, during the twelve month period during which the decrease in use or appli-
cation of the goods or services is deemed to take place, the use or application of the goods or services for the
purposes of making taxable supplies, in respect of which, if such goods or services had been acquired at the
time of such use or application, a deduction of input tax would not have been denied in terms of paragraph (a)
of subsection (2) of section sixteen, was of the total use or application of the goods:
Provided that where the percentage contemplated in “B” does not exceed the said percentage by
more than ten per centum of the total use or application, the said percentage shall be deemed to be the percentage
determined in “B”.
(9) Where a service is under paragraph (b) of subsection (4) of section seven deemed to be supplied, the con-
sideration in money for the supply shall be deemed to be an amount equal to the amount retained or recovered as
contemplated in that section.
(10) Where any supply of goods is a supply which would, but for the proviso to subsection (1) of section ten,
be charged with tax at the rate of zero per centum, the consideration in money for that supply shall be deemed to be
an amount equal to the purchase price of those goods to the supplier:
Provided that⎯
(a) in any case where the deduction of input tax referred to in that proviso has been made by any other person,
where that supplier and that other person are connected persons, the consideration in money for that supply
shall be deemed to be an amount equal to the greater of the purchase price of those goods to that supplier and
the purchase price of those goods to that other person;
(b) for the purposes of this subsection, the purchase price of any goods shall not be reduced by any amount of
input tax deducted under subsection (3) of section fifteen by the supplier or, as the case may be, any other person
where the supplier and that other person are connected persons.
(11) Where goods or services are deemed to be supplied by a registered operator under subsection (3) of section
seventeen, the consideration in money for the supply shall be deemed to be an amount equal to the cash equivalent
of the benefit or advantage granted to the employee or office holder, as contemplated in subsection (7) of section
eight.
(12) Where services are or are deemed by subsection (5) of section seven to be supplied to any public authority
or local authority by any registered operator the consideration in money for such supply shall be deemed to be the
amount of any payment made from time to time by the authority concerned to or on behalf of the registered operator
as contemplated in the said section.
(13) Where by reason of the repossession of goods from a debtor under an instalment credit agreement a supply
of such goods is deemed by subsection (9) of section seven to be made by that debtor, the consideration in money
for that supply shall be deemed to be an amount equal to the balance of the cash value of the goods, being the cash
value thereof applied under subsection (6) in respect of the supply of the goods to the debtor under the said agree-
ment, which has not been recovered on the date on which the supply of the goods by the debtor is deemed by
subsection (8) of section eight to be made:
Provided that the said balance shall be deemed to be the amount remaining after deducting from the cash value
so much of the sum of the payments made by the debtor under the said agreement as, on the basis of an apportion-
ment in accordance with the rights and obligations of the parties to the said instalment credit agreement, may
properly be regarded as having been made in respect of the cash value.
(14) Where a service is deemed by subsection (11) of section seven to be supplied to any person, the consider-
ation in money for such supply shall be deemed to be the amount that is received in respect of the bet.
(15) Where a service is deemed by subsection (12) of section seven to be supplied to any registered operator,
the consideration in money for such supply shall be deemed to be the amount that is received as a prize or winnings.
 (16) Where a right to receive goods or services to the extent of a monetary value stated on any token, voucher
or stamp, other than a postage stamp as defined in section 2 of the Postal and Telecommunications Act [Chapter
12:05], and any token, voucher or stamp contemplated in subsection (17) is granted for a consideration in money,
the supply of such token, voucher or stamp shall be disregarded for the purposes of this Act, except to the extent, if
any, that such consideration exceeds such monetary value.
(17) Where any token, voucher or stamp, other than a postage stamp as defined in section 2 of the Postal and
Telecommunications Act [Chapter 12:05], is issued for a consideration in money and the holder thereof is entitled
on the surrender thereof to receive goods or services specified on such token, voucher or stamp or which by usage
or arrangement entitles the holder to specified goods or services, without any further charge, the value of the supply
of the goods or services made upon the surrender of such token, voucher or stamp shall be deemed to be nil.
(18) Where any token, voucher or stamp is issued by any registered operator for no consideration and the
holder thereof is entitled on surrender thereof to another person, being the supplier of goods or services, to a discount
on the price of goods or services supplied to the holder, the consideration in money for the supply of such goods or
services shall be deemed to include the monetary value stated on such token, voucher or stamp:
Provided that such monetary value shall be deemed to include tax.
(19) Where any supply of entertainment is made by a registered operator and in terms of section sixteen no
deduction of input tax was made in terms of subsection (3) of section fifteen in respect of the acquisition by the
registered operator of goods or services for the purpose of such entertainment, the value of such supply shall be
deemed to be nil.
(20) Where any supply of medical or dental services or other goods or services is made as contemplated in
paragraph (c) of subsection (2) of section sixteen by a scheme referred to in that section, the value of such supply
shall be deemed to be nil.
(21) Where a taxable supply is not the only matter to which a consideration relates, the supply shall be deemed
to be for such part of the consideration as is properly attributable to it.
(22) Where any supply of goods is deemed to be made as contemplated in subsection (17) of section seven, the
consideration in money for such supply shall be deemed to be the total amount of the value placed on the importation
of the goods in terms of subsection (2) of section twelve and the amount of tax levied on the importation in terms of
paragraph (b) of subsection (1) of section six.
(23) Save as otherwise provided in this section, where any supply is made for no consideration the value of
that supply shall be deemed to be nil.
(23a) Every clearing agent shall be deemed to charge a clearance fee of at least twenty- five thousand
dollars (or other prescribed amount) on each bill of entry.
[Subsection (23a) inserted by Act 8 of 2015 and amended by Act 8 of 2022]
10 Zero rating
(1) Where, but for this section, a supply of goods would be charged with tax at the rate referred to in subsection
(1) of section six, such supply of goods shall, subject to compliance with subsection (3) of this section, be charged
with tax at the rate of zero per centum if—
(a) the supplier has supplied the goods, being movable goods, in terms of a sale or instalment credit agreement
and has exported the goods; or
(b) the goods have been supplied in the course of repairing, renovating, modifying or treating any goods to
which subparagraphs (ii) or (iv) of paragraph (g) of subsection (2) refers and the goods supplied—
(i) are wrought into, affixed to, attached to or otherwise form part of those other goods; or
(ii) being consumable goods, become unusable or worthless as a direct result of being used in that
repair, renovation, modification or treatment process; or
(c) the goods are supplied to a lessee or other person under a rental agreement, charter party or agreement for
chartering, if the goods are used exclusively in an export country; or
(d) the goods are supplied to a lessee or other person under a rental agreement, charter party or agreement for
chartering, if such goods are used by such lessee or other person exclusively in any commercial, financial,
industrial, mining, farming, fishing or professional concern conducted in an export country and payment of rent
or other consideration under such agreement is effected from such export country; or
(e) the supply is to a registered operator of a trade or of a part of a trade which is capable of separate operation,
where the supplier and the recipient have agreed in writing that such trade or part, as the case may be, is disposed
of as a going concern:
Provided that—
(i) such trade or part of a trade, as the case may be, shall not be disposed of as a going concern un-
less—
A. such supplier and such recipient have, at the time of the conclusion of the agreement for the
disposal of the trade or part of a trade, as the case may be, agreed in writing that such
 trade or part of a trade, as the case may be, will be an income-earning activity on the
date of transfer thereof; and
B. the assets which are necessary for carrying on such trade or part of a trade, as the case may
be, are disposed of by such supplier to such recipient;
(ii) where the trade or part of a trade, as the case may be, disposed of as a going concern has been
carried on in, on or in relation to goods or services applied mainly for purposes of such trade or part of a trade, as
the case may be, and partly for other purposes, such goods or services shall, where disposed of to such recipient, for
the purposes of this paragraph and section eighteen be deemed to form part of such trade or part of a trade, as the
case may be, notwithstanding paragraph (e) of the proviso to the definition of “trade” in section two; or
(f) the supply is to the Reserve Bank, or any bank registered under the Banking Act [Chapter24:20], of gold
in the form of bars, blank coins, ingots, buttons, wire, plate or granules or in solution, which has not undergone
any manufacturing process other than the refining thereof or the manufacture or production of such bars, blank
coins, ingots, buttons, wire, plate, granules or solution; or
(g) the supply is of such agricultural goods or services as are prescribed in regulations made in terms of section
seventy-eight, but subject to such conditions as may be prescribed therein; or
[Paragraph inserted by section 31 of Act 10 of 2003]
(h) the goods are supplied, as contemplated in subsection (8) of section seven, by a registered operator to or
for the purposes of his branch or main business situated in an export country in respect of which paragraph (b)
of the proviso to the definition of “trade” in section two are applicable; or
(i) the goods are gold coins supplied as such and which the Reserve Bank has issued in Zimbabwe in accord-
ance with Part VI of the Reserve Bank of Zimbabwe Act [Chapter 22:15], or which remain in circulation:
(j) the goods consist of medicines or allied substances within the meaning of the Medicines and Allied Sub-
stances Control Act [Chapter 15:05] which are prescribed for the purposes of this subsection:
[Paragraph inserted by section 23 of act 29 of 2004]
Provided that paragraphs (a), (b)(c) and (d) of this section shall not apply in respect of any supply of goods by
a registered operator if in respect of such goods input tax contemplated in paragraph (b) of the definition of “input
tax” in section 2 has been deducted in terms of subsection (3) of section sixteen by that registered operator or any
other person where that registered operator and that other person are connected persons.
(2) Where, but for this section, a supply of services would be charged with tax at the rate referred to in subsec-
tion (1) of section six, such supply of services shall, subject to compliance with subsection (3) of this section, be
charged with tax at the rate of zero per centum where—
(a) the services, not being ancillary transport services, comprise the transport of passengers or goods—
(i) from a place outside Zimbabwe to another place outside Zimbabwe; or
(ii) from a place in Zimbabwe to a place in an export country; or
(iii) from a place in an export country to a place in Zimbabwe;
or
(b) the services comprise the transport of passengers from a place in Zimbabwe to another place in Zimbabwe
to the extent that that transport is by aircraft and constitutes “international carriage” as defined in Article 1 of
the Convention set out in the First Schedule to the Carriage by Air Act [Chapter13:04]; or
(c) the services, including any ancillary transport services, comprise the transport of goods from a place in
Zimbabwe to another place in Zimbabwe to the extent that those services are supplied by the same supplier as
part of the supply of services to which paragraph (a) applies; or
(d) ….
[Paragraph repealed by section 30 of Act 10 of 2003]
(e) the services comprise the transport of goods or any ancillary transport services supplied directly in connec-
tion with the exportation from or the importation into Zimbabwe of goods or the movement of goods through
Zimbabwe from one export country to another export country, where such services are supplied directly to a
person who is not a resident of Zimbabwe and is not a registered operator, otherwise than through an agent or
other person; or
(f) the services are supplied directly in connection with land, or any improvement thereto, situated in any
export country; or
(g) the services are supplied directly in respect of—
(i) movable property situated in any export country at the time the services are rendered; or
(ii) goods temporarily admitted into Zimbabwe which are exempt from tax on importation in terms of
regulations made in terms of section seventy-eight, or
[Paragraph substituted by section 31 of Act 10 of 2003]
(iii) goods in respect of which paragraph (b) or (c) of the definition of “exported” in section two apply;
or
(iv) the repair, maintenance, cleaning or reconditioning of a foreign-going aircraft; or
(h) the services comprise⎯
 (i) the handling, pilotage, salvage or towage of any foreign-going aircraft while situated in Zimbabwe;
or;
(ii) services provided in connection with the operation or management of any foreign-going aircraft;
or
(iii) services which are prescribed in terms of regulations made in terms of section seventy-eight;
[Paragraph substituted by section 301of Act 10 of 2003]
or
(i) the services of arranging⎯
(i) the supply of goods as contemplated in paragraph (b) or (c) of the definition of “exported”; or
(ii) the supply of services referred to in subparagraph (iv) of (g) or paragraph (h); or
(iii) the transport of goods, including ancillary transport services, within Zimbabwe;
for a person who is not a resident of Zimbabwe and is not a registered operator; or
(j) the services comprise the repair, maintenance, cleaning or reconditioning of a railway train operated by a
person who is not a resident of Zimbabwe and is not a registered operator; or
(k) the services, not being telecommunication services, are physically rendered elsewhere than in Zimbabwe,
supplied to any person who utilises such services in Zimbabwe; or
(l) the services are supplied for the benefit of and contractually to a person who is not a resident of Zimbabwe
and who is outside Zimbabwe at the time the services are rendered, not being services which are supplied
directly in connection with⎯
(i) land or any improvement thereto situated inside Zimbabwe; or
(ii) movable property situated inside Zimbabwe at the time the services are rendered, except movable
property which⎯
A. is exported to the said person subsequent to the supply of such services; or
B. forms part of a supply by the said person to a registered operator and such services are
supplied to the said person for purposes of such supply to the registered operator;
and not being services which are the acceptance by any person of an obligation to refrain from carrying on
any trade, to the extent that the carrying on of that trade would have occurred within Zimbabwe; or
(m) the services comprise—
(i) the filing, prosecution, granting, maintenance, transfer, assignment, licensing or enforcement, in-
cluding the incidental supply by the supplier of such services of any other services which are necessary for the
supply of such services, of intellectual property rights, including patents, designs, trade marks, copyrights, know-
how, confidential information, trade secrets or similar rights; or
(ii) the acceptance by any person of an obligation to refrain from pursuing or exercising in whole or
in part any such rights;
where and to the extent that those rights are for use outside Zimbabwe; or
(n) the services comprise the carrying on by a private voluntary organisation of the activities referred to in the
definition of “private voluntary organisation” in section 2 of the Private Voluntary Organizations Act [Chapter
17:05] and those services are in terms of subsection (5) of section seven, deemed to be supplied by that organ-
isation to a public authority or local authority; or
(o) the services are supplied, as contemplated in of subsection (8) of section seven, by a registered operator to
or for the purposes of his branch or main business situated in an export country in respect of which paragraph
II of the proviso to the definition of “trade” in section two are applicable; or
(p) the services are in terms of subsection (5) of section seven, deemed to be supplied to a public authority to
the extent that the payment contemplated in that section consists of a transfer payment; or
(q) the services in question are supplied by—
(i) the operator of a facility designated in terms of the Tourism Act [Chapter 14:20] as a tourist facility
of a class specified in the First Schedule to the Tourism (Designated Tourist Facilities) (Declaration and Require-
ments for Registration) Regulations, 1996, published in Statutory Instrument 106 of 1996 (as amended or replaced
from time to time);
(ii) the owner of any place (other than a place wherein the owner ordinarily resides) where persons are
provided to persons not resident in Zimbabwe, on the payment of a charge, with residential accommodation, whether
with or without meals, commonly known as, but not limited to, a “boarding house” or “back-packers’ lodge”;
(iii) the operator of a hunting safari:
Provided that regulations made in terms of section 78 may specify that any such class of services
shall not be charged with tax at the rate of zero per centum but be charged with tax at the rate referred to in
section 6(1).
[Paragraph inserted by Act 11 of 2014]
 (3) Where a rate of zero per centum has been applied by any registered operator under a provision of this
section, the registered operator shall obtain and retain such documentary proof substantiating the registered opera-
tor’s entitlement to apply the said rate under that provision as is acceptable to the Commissioner.
11 Exempt supplies
The supply of any of the following goods or services shall be exempt from the tax imposed in terms of paragraph
(a) of subsection (1) of section six⎯
(a) the supply of any financial services, but excluding—
(i) the supply of short-term insurance by insurance agents or brokers liable to property and insurance
commission tax under section 36H of the Income Tax Act [Chapter 23:06]:
For the purpose of this subparagraph the short-term insurance in question shall be deemed to be a
supply of financial services by the agents or brokers in question, and not by the insurance company or reinsurance
company on behalf of which the brokers or agents buy or sell any policy of insurance:
Provided tax shall be payable on the amount of the commission earned by such agents or brokers
and not on the value of the policy of insurance; and
[Subparagraph substituted by Act 9 of 2015]
(ii) the supply of financial services other than the supply of short-term insurance which, but for this
paragraph, would be charged with tax at the rate of zero per centum under section 10;
[Paragraph substituted by Act 8 of 2015]
(b) the supply by any association not for gain of any donated goods or services or any other goods made or
manufactured by such association if at least eighty per centum of the value of the materials used in making or
manufacturing such other goods consists of donated goods;
(c) the supply of any accommodation in a dwelling⎯
(i) under an agreement for the letting and hiring of the accommodation; or
(ii) where the supplier is the employer of the recipient, including any employer as defined in paragraph
1 of the Thirteenth Schedule to the Taxes Act, the recipient is entitled to occupy the accommodation as a benefit of
his office or employment and his right thereto is limited to the period of his employment or the term of his office or
a period agreed upon by the supplier and the recipient;
(d) the supply of leasehold land by way of letting, not being a grant or sale of the lease of that land, to the
extent that that land is used or is to be used for the principal purpose of accommodation in a dwelling erected
or to be erected on that land;
(e) the supply of land, together with any improvements to such land existing on the date on which the supplier
became contractually obliged to supply such land and such existing improvements to the recipient, where such
land is situated outside Zimbabwe and such supply is made by way of sale or by way of letting;
(f) the supply by any person in the course of a transport business of any service comprising the transport by
that person in a vehicle operated by him of fare-paying passengers and their personal effects by railway or road
not being a supply of any such service which, but for this paragraph, would be charged with tax at the rate of
zero per centum in terms of paragraph (a) of subsection (2) of section ten;
(g) the supply of any educational or training services in respect of pre-school, primary, secondary, university
or technical education, including the education or training of physically or mentally handicapped persons, in
any institution which is registered under any law administered by the Ministry responsible for education or
higher education;
For the purposes of this paragraph “educational or training services” do not include—
(i) the provision of sporting facilities to persons other than students of any institution which is regis-
tered under any law administered by the Ministry responsible for education or higher education;
(ii) the supply of accommodation to persons other than to students referred to in subparagraph (i);
(iii) hostel or canteen services supplied to students referred to in subparagraph (i), if such services are
provided independently under a contract or other arrangement with an institution referred to in subparagraph (i);
(iv) hostel or canteen services supplied by an institution referred to in subparagraph (i) to persons other
than students referred to in subparagraph (i);
[Paragraph substituted by section 32 of Act 10 of 2003]
(h) the supply of any medical services by any person or institution;
(i) the supply of any goods or services by an employee organisation to any of its members to the extent that
the consideration for such supply consists of membership contributions;
(j) the supply of such goods or services as are prescribed in regulations made in terms of section seventy-eight.
[Paragraph substituted by section 32 of Act 10 of 2003]
(k) …..
[Paragraph deleted by section 33 of Act 8 of 2005]
12 Collection of tax on importation of goods, determination of value thereof and exemptions from tax
(1) For the purposes of this Act goods shall be deemed to be imported into Zimbabwe on the date on which the
goods are, in terms of section 36 of the Customs Act, deemed to be imported:
Provided that⎯
(a) goods which are entered for home consumption in terms of the Customs Act shall be deemed to have been
imported on the date on which they are so entered;
(b) where any goods have been imported and entered in a warehouse licensed in terms of the Customs Act, but
have not been entered for home consumption, any supply of such goods before they are entered for home con-
sumption shall be disregarded for the purposes of this Act.
(2) For the purposes of this Act the value to be placed on the importation of goods into Zimbabwe which are
entered for home consumption in terms of the Customs Act shall be deemed to be the value thereof for customs duty
purposes, plus any duty, excluding surtax, levied in terms of the said Act in respect of the importation of such goods.
[Subsection substituted by Act 10 of 2009]
(3) The importation of such goods as are prescribed in regulations made in terms of section seventy-eight shall
be exempt from the tax imposed in terms of paragraph (b) of subsection (1) of section six.
(4) The Commissioner and the successor postal company and any other postal licensee may make such ar-
rangements as they may deem necessary—
(a) for the collection, in such manner as they may determine, by the company or licensee on behalf of the
Commissioner of the value-added tax payable in terms of this Act in respect of the importation of any goods
into Zimbabwe; and
(b) for the exchange of such information as is necessary for the carrying out of such arrangements.
(5) Subject to paragraph (b) of subsection (1) of section six and this section, any provision of the Customs Act
relating to the importation, transit and clearance of any goods and the payment and recovery of duty shall apply,
mutatis mutandis, as if enacted in terms of this Act, whether or not the said provisions apply for the purposes of any
duty levied in terms of the Customs Act.
12A Deferment of collection of tax on capital goods
(1) Subject to this section and to such conditions as maybe prescribed, where
a person produces proof to the satisfaction of the Commissioner that he or she has imported goods of a capital nature
for his or her own use, the Commissioner shall authorise a deferment of payment of tax on such goods for a pre-
scribed period not exceeding one hundred and eighty days from the date on which the goods are, in terms of section
36 of the Customs and Excise Act [Chapter 23:02]deemed to have been imported:
Provided that the Minister may prescribe different periods for different classes or values of goods of a capital
nature.
[Subsection substituted by Act 11 of 2014]
(2) Where any person in favour of whom a deferment has been authorised in terms of subsection (1)—
(a) sells, re-exports or otherwise disposes of such goods before or after the expiry of the period of the defer-
ment, without having used them in the manner that qualified them for deferment of payment of tax in terms of
subsection (1); or
(b) fails to pay the deferred tax by the date which the Commissioner fixes in terms of subsection (1) as the date
on which payment of the deferred tax is due;
such person shall become liable, in addition to any tax for which he or she is liable on such disposal, to an additional
amount of tax equal to the tax paid or payable by him or her on the expiry of the period of the deferment, together
with interest thereon calculated in accordance with section 46:
Provided that if the Commissioner is satisfied that the disposal of the goods in question or the delay in paying
the deferred tax was not due to an intent to evade the provisions of this section, the Commissioner may waive the
payment of the whole or such part of the additional amount of tax payable as the Commissioner thinks fit.
[Subsection substituted by Act 6 of 2012]
(3) The correct amount of tax and additional tax payable in respect of any goods in terms of this section shall,
from the time when it should have been paid, constitute a debt due to the State by the person concerned and shall,
at any time after it becomes due, be recoverable in a court of competent jurisdiction by proceedings in the name of
the Commissioner, and any goods in a bonded warehouse or in the custody of the Authority and belonging to that
person, and any goods afterwards imported or entered for export by the person by whom the tax or additional tax is
due, shall, while still under control of the Authority, be subject to a lien for such debt and may be detained by the
Authority until such debt is paid, and the claims of the State shall have priority over the claims of all persons upon
the said goods of whatever nature and may be enforced by sale or other proceedings if the debt is not paid within
three months after the date upon which it became due.
(4) For the purposes of this section—
“goods of a capital nature” means—
 (a) such plant or machinery as the Minister may, in consultation with the Minister responsible for
administering the Mines and Minerals Act [Chapter 21:05], prescribe, which is used exclusively for mining
purposes on a registered mining location as defined in the Mines and Minerals Act [Chapter 21:05]; or
(b) such plant, equipment or machinery as the Minister may, in consultation with the Minister respon-
sible for industry, prescribe, which is or will be used exclusively for manufacturing or industrial purposes in,
on or in connection with a factory (including spare parts required for the purpose of maintaining or refurbishing
such plant, equipment or machinery) other than motor vehicles intended or adapted for use on roads or capable
of being so used;
[Paragraph substituted by section 23 of Act 2 of 2005]
(c) such plant, equipment or machinery as the Minister may, in consultation with the Minister respon-
sible for agriculture, prescribe, which is or will be used exclusively for agricultural purposes (including spare
parts required for the purpose of maintaining of refurbishing such plant, equipment or machinery) other than
motor vehicles intended or adapted for use on roads or capable of being so used;
[Paragraph inserted by section 23 of Act 2 of 2005]
(d) such plant, equipment or machinery as the Minister may, in consultation with the Minister respon-
sible for transportation, prescribe, which is or will be used exclusively for the aviation industry (including
spare parts required for the purpose of maintaining or refurbishing aircraft and such plant, equipment or ma-
chinery) other than motor vehicles intended or adapted for use on roads or capable of being so used.
[Paragraph inserted by section 23 of Act 2 of 2005]
(e) such medical equipment as the Minister may, in consultation with the Minister responsible for
health, prescribe.
[Paragraph inserted by section 10 of Act 5 of 2010]
12B Collection of tax on exportation of unbeneficiated lithium, determination of value thereof
(1) Notwithstanding section 10(1), tax at the rate of five per centum on the gross fair market value of unbene-
ficiated lithium or unbeneficiated lithium petallite shall be levied on a supplier of such lithium for export from
Zimbabwe.
In this section—
“unbeneficiated lithium”, in relation to its exportation from Zimbabwe, means lithium exported for use in au-
tomotive or other batteries manufactured outside Zimbabwe, or for the manufacture of lithium carbonate, or for any
beneficiation whatsoever outside Zimbabwe:
“unbeneficiated lithium petallite” means petallite ore that has not been crushed and separated by means of dense
media separation, flotation or other appropriate technique, and ground into powder or concentrate.
[Subsection substituted by Act 7 of 2021]
.(2) For the purposes of this Act unbeneficiated lithium shall be deemed to be exported from Zimbabwe on the
date on which the lithium is, in terms of section 60 of the Customs Act [Chapter 23:02], deemed to be exported.
(3) For the purposes of this Act the value to be placed on the exportation of unbeneficiated lithium from Zim-
babwe shall be deemed to be—
(a) the market value thereof on the date of exportation as determined by reference to a reputable metals ex-
change; or
(b) the value as reflected on the bill of entry or other document required in terms of section 54 of the Customs
and Excise Act [Chapter 23:02] to be delivered to an officer under that Act;
whichever is the higher value.
(4) Subject to section 6(1)(b), and this section, any provision of the Customs Act relating to the exportation,
transit and clearance of any goods and the payment and recovery of duty shall apply, with such changes as may be
necessary, as if enacted in terms of this Act, whether or not the said provisions apply for the purposes of any duty
levied in terms of the Customs Act.
[Section substituted by Act 1 of 2018]
(5) No tax under this section is payable with effect from the 1st January, 2020, to the 1st January, 2025, on the
value of unbeneficiated lithium exported in the form of spodumene and chemical grade petalite concentrate by a
supplier of such lithium who, by the 1st January, 2020, commences or has commenced operations as a lithium
producer in a special economic zone declared under the Special Economic Zones Act [Chapter 14:34] (No. 7 of
2016)
[Sub-section inserted by Act 3 of 2019]
12C Collection of tax on exportation of unbeneficiated hides, determination of value thereof
(1) In this section, “unbeneficiated hide” means any raw or untanned animal hide, but does not include croco-
dile skin, goat or sheep skin or any hide, skin or hair that is or forms part of a trophy as defined by or under the
Parks and Wild Life Act [Chapter 20:14].
[Subsection substituted by Act 8 of 2014]
 (2) Notwithstanding section 10(1), tax at the rate of seventy-five cents per kilogram of unbeneficiated hides
shall be levied on a supplier of such raw hides for export from Zimbabwe or fifteen per centum of the export con-
signment of the hides in question, whichever figure results in a higher tax yield.
[Subsection substituted by Act 8 of 2015 with effect from 1 October 2015]
(3) For the purposes of this Act unbeneficiated hides shall be deemed to be exported from Zimbabwe on the
date on which the unbeneficiated hides are, in terms of section 60 of the Customs Act [Chapter 23:02], deemed to
be exported.
(4) For the purposes of this Act the value to be placed on the exportation of unbeneficiated hides from Zimba-
bwe shall be deemed to be—
(a) the highest price which the hides in question fetched in the country to which they are to be exported for
beneficiation in the period of six months before the date of exportation, as notified from time to time by the
Authority by notice in the Gazette:
Provided that if no such notice was published within the period of six months before the date of
exportation, reference may be made to the last such published notice; or
(b) the value as reflected on the bill of entry or other document required in terms of section 54 of the Customs
and Excise Act [Chapter 23:02]to be delivered to an officer under that Act;
whichever is the higher value.
(5) Subject to section 6(1)(b), and this section, any provision of the Customs Act relating to the exportation,
transit and clearance of any goods and the payment and recovery of duty shall apply, with such changes as may be
necessary, as if enacted in terms of this Act, whether or not the said provisions apply for the purposes of any duty
levied in terms of the Customs Act.
(6) Notwithstanding this section, the Minister is hereby authorised by notice in a statutory instrument to pre-
scribe a maximum quota of unbeneficiated hides by weight at or below which no tax in terms of this section shall
be chargeable:
Provided that the statutory instrument in question shall be laid before the National Assembly and not come into
force until the lapse of fourteen sitting days after they are so laid, unless the House has earlier passed a resolution
annulling the statutory instrument.
[Subsection inserted by Act 8 of 2014]
[Section inserted by Act 1 of 2014]
12D Collection of tax on exportation of unbeneficiated platinum, determination of value thereof
(1) In this section, “unbeneficiated platinum” means platinum ore which has not been subjected to the follow-
ing processes—
(a) crushing, milling and washing to remove waste material; and
(b) the smelting of the resulting platinum concentrate into pellet or ingot form.
(2) Notwithstanding section 10(1), tax at the rate specified in the table below on the value of unbeneficiated
platinum shall be levied on a supplier of such platinum for export from Zimbabwe—
(a) if the supplier has built plant in Zimbabwe capable of producing platinum group concentrates, tax at the
rate of five per centum on the value of unbeneficiated platinum;
(b) if, additionally to the plant referred to in paragraph (a), the supplier has built plant in Zimbabwe capable of
smelting to produce matte, tax at the rate of two comma five per centumon the value of unbeneficiated platinum;
(c) if, additionally to the plant referred to in paragraph (a) and (b), the supplier has built in Zimbabwe a base
metal refinery capable of recovering base metals, tax at the rate of one per centumon the value of unbeneficiated
platinum;
(d) at the rate zero per centum on the value of unbeneficiated platinum in the case of a supplier who begins
operations as such on or after the 1st January, 2018, and for a period of five years after that.
[Subsection inserted by Act 1 of 2018]
(3) For the purposes of this Act unbeneficiated platinum shall be deemed to be exported from Zimbabwe on
the date on which the unbeneficiated platinum is, in terms of section 60 of the Customs Act [Chapter 23:02], deemed
to be exported.
(4) For the purposes of this Act the value to be placed on the exportation of unbeneficiated platinum from
Zimbabwe shall be deemed to be—
(a) the market value thereof on the date of exportation as determined by reference to a reputable metals ex-
change; or
(b) the value as reflected on the bill of entry or other document required in terms of section 54 of the Customs
and Excise Act [Chapter 23:02]to be delivered to an officer under that Act;
whichever is the higher value.
(5) Subject to section 6(1)(b), and this section, any provision of the Customs Act relating to the exportation,
transit and clearance of any goods and the payment and recovery of duty shall apply, with such changes as may be
necessary, as if enacted in terms of this Act, whether or not the said provisions apply for the purposes of any duty
levied in terms of the Customs Act.
[Section inserted by Act 1 of 2014. For postponement oftax to 2022 see s. 16 of Act 1 of 2019. Law Reviser, for suspension of operation of section 12 D see sec
18 of Act 8 of 2022.]
12E Collection of tax on exportation of uncut and cut dimensional stone determination of value thereof
(1) Notwithstanding section 10(1), tax at the rate of—
(a) five per centumon the gross fair market value of uncut dimensional stone (that is to say marble or black
granite hewn on location at the quarry with no or minimal trimming, drilling, cutting or grinding) shall be levied
on a supplier of such stone for export from Zimbabwe;
(b) two comma five per centumon the gross fair market value of cut dimensional stone (that is to say, marble
or black granite sawn into sheets not exceeding a thickness of five (5)centimetres) shall be levied on a supplier
of such stone for export from Zimbabwe:
Provided that no tax shall be payable if the sheets of cut dimensional stone are smoothed at the edges and
polished in Zimbabwe.
(2) For the purposes of this Act uncut or cut dimensional stone shall be deemed to be exported from Zimbabwe
on the date on which such stone is, in terms of section 60 of the Customs Act [Chapter 23:02], deemed to be
exported.
(3) For the purposes of this Act the value to be placed on the exportation of uncut or cut dimensional stone
from Zimbabwe shall be deemed to be—
(a) the market value thereof on the date of exportation as determined by reference to a reputable exchange; or
(b) the value as reflected on the bill of entry or other document required in terms of section 54 of the Customs
and Excise Act [Chapter 23:02] to be delivered to an officer under that Act;
whichever is the higher value.
(4) Subject to section 6(1)(b), and this section, any provision of the Customs Act relating to the exportation,
transit and clearance of any goods and the payment and recovery of duty shall apply, with such changes as may be
necessary, as if enacted in terms of this Act, whether or not the said provisions apply for the purposes of any duty
levied in terms of the Customs Act.
[Section inserted by Act 1 of 2018]
13 Collection of value-added tax on imported services, determination of value thereof and exemptions
from tax
(1) Where tax is payable in terms of paragraph (c) of subsection (1) of section six in respect of the supply of
imported services the recipient shall within thirty days of the date referred to in subsection (2)—
(a) furnish the Commissioner with a declaration, in such form as the Commissioner may prescribe, containing
such information as may be required; and
(b) calculate the tax payable on the value of the imported services at the rate of tax in force on the date of
supply of the imported services and pay such tax to the Commissioner.
[Subsection amended by section 34 of Act 8 of 2005 and Act 6 of 2006]]
(2) For the purposes of this Act, a supply of imported services shall be deemed to take place at the time an
invoice is issued by the supplier or recipient in respect of that supply or the time any payment is made by the
recipient in respect of that supply, whichever time is the earlier.
(2a) ….
[Subsection repealed by Act 6 of 2006].
(3) For the purposes of this Act, the value to be placed on the supply of imported services shall, save as other-
wise provided in this section, be the value of the consideration for the supply, as determined in terms of subsection
(3) of section nine, or the open market value of the supply, whichever is the greater.
(4) Where a person carries on activities outside Zimbabwe which do not form part of the activities of any trade
carried on by him and, in the course of such first-mentioned activities, services are rendered for the purposes of
such trade which, if rendered by anybody other than the said person, would be imported services, such services shall
for the purposes of paragraph (c) of subsection (1) of section six, be deemed to be imported services supplied and
received by that person in respect of such trade.
(5) The tax chargeable in terms of paragraph (c) of subsection (1) of section six, shall not be payable in respect
of—
(a) a supply which is chargeable with tax in terms of paragraph (a) of subsection (1) of section six at the rate
provided in section six; or
(b) a supply which, if made in Zimbabwe, would be charged with tax at the rate of zero per centum applicable
in terms of section ten or would be exempt from tax in terms of section eleven.
13A Certain imported services deemed to be locally supplied
(1) Despite section 13, the supply of radio and television services from outside Zimbabwe to an address in
Zimbabwe or of electronic services by an electronic commerce operator domiciled outside Zimbabwe to a person
resident in Zimbabwe shall be deemed to be a supply made in Zimbabwe.
(2) The obligation to charge and account for tax shall be that of the supplier or his or her duly appointed
representative in Zimbabwe.
 [Section inserted by Act 3 of 2019]
14 Accounting basis
(1) In this section⎯
“payment” shall mean payment of consideration which reduces or discharges any obligation, whether an ex-
isting obligation or an obligation which will arise in future, in respect of or consequent upon, whether directly
or indirectly, the purchase price.
(2) Every registered operator shall account for tax payable on an invoice basis for the purposes of section
fifteen:
Provided that regulations made under section seventy-eight may provide for circumstances where, upon a writ-
ten application to the Commissioner, a registered operator may account for tax payable on a payments basis.
15 Calculation of tax payable
(1) The tax payable by a registered operator shall be calculated by him in accordance with this section in respect
of each tax period during which he has carried on a trade in respect of which he is registered or is required to be
registered in terms of section twenty-three.
(2) No deduction of input tax shall be made in terms of this Act in respect of a supply or the importation of
any goods or services into Zimbabwe, unless—
[Sub-section inserted by Act 3 of 2019]
(a) a tax invoice or debit note or credit note in relation to that supply has been provided in accordance with
sections twenty or twenty-one within the period the registered operator is required to furnish a return in terms
of sections twenty-seven and twenty-eight or twelve months, whichever is the longer period and is held by the
registered operator making that deduction at the time that any return in respect of that supply is furnished:
[Paragraph amended by section 26 of Act 29 of 2004 and by section 24 of Act 2 of 2005]
...
[Proviso inserted by Act 1 of 2019 and repealed by Act 8 of 2022]
(b) a tax invoice is, in terms of subsection (5) or (6) of section twenty, not required to be issued or a debit or
credit note is, in terms of section twenty-one not required to be issued; or
(c) sufficient records are maintained as required by subsection (7) of section twenty where the supply is a
supply of second-hand goods or a supply of goods as contemplated in subsection (9) of section seven and in
either case is a supply to which that section relates; or
(d) a bill of entry or other document prescribed in terms of the Customs Act in relation to the said importation
has been delivered in accordance with that Act and is held by the registered operator making that deduction, or
by his agent as contemplated in subsection (6) of section fifty-six, at the time that any return in respect of that
importation is furnished:
Provided that—
(i) no bill of entry or other document prescribed in terms of the Customs Act may be used for
the purposes of this paragraph by a registered operator after a period of twelve months from
the date on which it was delivered to the registered operator or his or her agent;
(ii) where a tax invoice or debit note or credit note in relation to that supply has been provided
in accordance with this Act, or a bill of entry or other document has been delivered in
accordance with the Customs Act, as the case may be, the Commissioner may determine
that no deduction for input tax in relation to that supply or importation shall be made unless
that tax invoice or debit note or credit note or that bill of entry or other document is retained
in accordance with section 57(3).
[Proviso substituted by Act 1 of 2014]
(e) an invoice is held in terms of section 13(2) and payment of the tax has been made in terms of section 13(1).
[Paragraph inserted by Act 3 of 2019]
(3) Subject to subsection (2) of this section and sections fourteen and sixteen, the amount of tax payable in
respect of a tax period shall be calculated by deducting from the sum of the amounts of output tax of the registered
operator which are attributable to that period, as determined under subsection (4), and the amounts, if any, received
by the registered operator during that period by way of refunds of tax charged in terms of paragraphs (b) and (c) of
subsection (1) and subsection (3) of section six, the following amounts, namely—
(a) the amounts of input tax—
(i) in respect of supplies of goods and services, not being supplies of second-hand goods to which
paragraph (b) of the definition of “input tax” in section two applies, and supplies referred to in subparagraph (iii))
made to the registered operator during that tax period;
(ii) in respect of supplies of second-hand goods to which paragraph (b) of the definition of “input tax”
in section two applies⎯
A. other than supplies in respect of which subparagraph B applies, to the extent that payment
of any consideration which has the effect of reducing or discharging any obligation, whether
 an existing obligation or an obligation which will arise in the future, relating to the purchase
price for those supplies has been made during that tax period;
B. which consist of fixed property in respect of the acquisition of which stamp duty is, in terms
of the Stamp Act, payable, if the full or final amount of such stamp duty has been paid
during that tax period;
(iii) in respect of taxable supplies made to the registered operator in respect of which paragraph (d) of
subsection (3) of section eight, apply, other than supplies in respect of which subsection (4) of section nine apply,
to the extent that payment of any consideration which has the effect of reducing or discharging any obligation,
whether an existing obligation or an obligation which will arise in the future, relating to the purchase price for those
supplies has been made during that tax period;
(iv) charged in terms of paragraph (b) of subsection (1) of section six in respect of goods imported into
Zimbabwe by the registered operator and invoiced or paid, whichever is the earlier, during that tax period;
(v) calculated in accordance with paragraph (b) of subsection (2) or (7) of section twenty-one or sub-
section (1), (2) or (5) of section twenty-two, as applicable to the registered operator;
(b) an amount equal to the tax fraction of any payment made during the tax period by the registered operator
to indemnify another person in terms of any contract of insurance:
Provided that this paragraph shall—
(i) only apply where the supply of that contract of insurance is a taxable supply or where the supply
of that contract of insurance would have been a taxable supply if the time of performance of that supply had been
on or after the 1st January, 2004,;
(ii) not apply where that payment is in respect of the supply of goods or services to the registered
operator or the importation of any goods by the registered operator;
(iii) not apply where the supply of that contract of insurance is a supply charged with tax at the rate of
zero per centum under section ten and that other person is, at the time that that payment is made, not a registered
operator and not a resident of Zimbabwe;
(iv) not apply where that payment results from a supply of goods or services to that other person where
those goods are situated outside Zimbabwe or those services are physically performed elsewhere than in Zimbabwe
at the time of that supply;
(c) an amount equal to the tax fraction of any amount paid by the supplier of the services contemplated in
subsection (11) of section seven as a prize or winnings to the recipient of such services;
(d) an amount equal to the tax fraction of any amount of tax on totalizator transactions or tax on betting levied
and paid for the benefit of the Consolidated Revenue Fund by the supplier of the services contemplated in
subsection (11) of section seven;
(e) the amounts calculated in accordance with subsection (4) or (5) of section seventeen in relation to any goods
or services applied during the tax period as contemplated in that section;
(f) any amount of input tax in relation to any supply in respect of which paragraph (a) of, or the proviso to,
subsection (2) of this section has operated to deny a deduction of input tax and the registered operator has
obtained, during the tax period, a tax invoice in relation to that supply;
(g) in the case of a registered operator who has supplied goods or services during that tax period otherwise than
in terms of subsection (2) of section seventeen, an amount determined in accordance with the formula⎯
A×B×C
in which formula—
“A” represents the tax fraction;
“B” represents the lesser of—
(i) any of the following amounts--
A. the cost, including any tax forming part of such cost, to the registered operator of the
acquisition, manufacture, assembly, construction or production of those goods or ser-
vices:
Provided that where the goods or services were acquired under a supply in respect
of which the consideration in money was in terms of subsection (4) of section nine
deemed to be the open market value of the supply or would in terms of that section
have been deemed to be the open market value of the supply, the cost of those goods
or services shall be deemed to include such open market value to the extent that it
exceeds the consideration in money for that supply; or
B. the amount which was represented by “B” in the formula contemplated in subsection
(4) of section seventeen when such goods or services were deemed to be supplied to
the registered operator, where the registered operator was at some time after the acqui-
sition of such goods or services deemed by subsection (4) of section seventeen to have
been supplied with such goods or services; or
 C. the amounts then represented by “A” in the said formula or by “B” in the formula
contemplated in subsection (5) of section seventeen respectively, in the most recent
adjustment made under subsections (2) or (5) of section seventeen by the registered
operator prior to such deemed supply of goods or services where the registered opera-
tor was at some time after the acquisition of the goods or services required to make an
adjustment contemplated in subsections (2) or (5) of section seventeen; and
(ii) the open market value of the supply of those goods or services at the time those goods or
services are deemed to be supplied;
“C” represents the percentage that, immediately before the time of the supply, the use or application
of the goods or services for the purpose other than that of making taxable supplies was of the total use or
application of the goods or services;
(h) an amount equal to the tax fraction of any payment made by the registered operator during the tax period
in respect of the redemption with him, or his agent, of the monetary value of any token, voucher or stamp
contemplated in subsection (18) of section nine, to a supplier of goods or services who has granted a discount
on the surrender to him of such token, voucher or stamp by a recipient of a supply of goods or services;
(i) in the case of a registered operator who has, during the tax period, supplied a property in possession in the
course or furtherance of his trade under a sale, an amount equal to the tax fraction of the lesser of⎯
(i) the amount, excluding any amount of tax, received in respect of the sale of such property in pos-
session less any amount paid by the registered operator in respect of the acquisition of such property in possession;
and
(ii) the amount of the unrecovered loan balance less any amount paid by the registered operator in
respect of the acquisition of such property in possession:
Provided that no deduction shall be made in terms of this paragraph where the person in default is
or will be held liable for payment of such lesser amount.
For the purposes of this subparagraph--
“property in possession” means fixed property acquired by any registered operator—
(a) at a sale in execution as a result of default by any person (other than a person who held or
applied such fixed property for the purpose of making taxable supplies in the course or furtherance of his trade
immediately before such sale in execution) in respect of an unrecovered loan balance due to that registered operator
in terms of a credit agreement; or
(b) as a result of an abandonment authorised by the Master of the High Court where such
person has defaulted in respect of an unrecovered loan balance due to that registered operator in terms of a credit
agreement or gone insolvent;
“unrecovered loan balance” means the amount of capital, interest and administrative holding costs out-
standing in terms of a credit agreement at the date of sale in execution or the date of authorisation of abandon-
ment by the Master of the High Court;
(k) an amount equivalent to fifty per centum of the cost of the acquisition of fiscalised electronic registers by
a registered operator.
[Subparagraph substituted by Act 1 of 2014]
(4) For the purposes of subsection (3)⎯
(a) where any registered operator is entitled under subsection (3) to deduct any amount in respect of any tax
period from the sum of the amounts of output tax of the registered operator which are attributable to that period,
the registered operator may deduct that amount from the amount of output tax attributable to any later tax period
(but not later than the end of the longer period referred to in subsection (2)(a)) to the extent that it has not
previously been deducted by the registered operator under that subsection;
[Paragraph amended by section 24 of Act 2 of 2005]
(b) the amount of input tax which, in relation to any supply of goods or services is to a registered operator, the
registered operator may deduct in respect of any payment referred to in subparagraph (ii) of paragraph (a) or
subparagraph (i) of paragraph (b) of subsection (3), shall be an amount which bears to the full amount of the
input tax relating to that supply the same ratio as the amount of the payment bears to the full value on which
tax was payable in respect of the supply.
(5) For the purposes of subsection (3), output tax in relation to a supply made by a registered operator shall be
attributable to a tax period⎯
(a) subject to paragraph (b), where a supply is made or is deemed to be made by him during that tax period; or
(b) where a supply is made under a sale in respect of which paragraph (d) of subsection (3) of section eight
applies, other than a supply in respect of which subsection (4) of section nine applies, to the extent that payment
of any consideration which has the effect of reducing or discharging any obligation, whether an existing obli-
gation or an obligation which will arise in the future, relating to the purchase price for that supply has been
made during that tax period.
 (6) If, in relation to any tax period of any registered operator, the aggregate of the amounts that may be de-
ducted under subsection (3) from the sum referred to in that subsection, the amount, if any, brought forward from
the tax period preceding the first-mentioned tax period as provided in paragraph (b) of the proviso to subsection (1)
of section forty-four and the amount, if any, credited under subsection (4) of section forty-four to the registered
operator’s account during the first-mentioned tax period, exceeds the said sum, the amount of the excess shall,
subject to this Act, be refundable to the registered operator by the Commissioner as provided in subsection (1) of
section forty-four.
16 Permissible deductions in respect of input tax
(1) Where goods or services are acquired or imported by a registered operator partly for consumption, use or
supply (hereinafter referred to as “the intended use”) in the course of making taxable supplies and partly for another
intended use and tax has become payable in respect of the supply to him or the importation by him, as the case may
be, of such goods or services or in respect of such goods under subsection (3) of section six or where tax is the tax
fraction of an amount or consideration in respect of a supply contemplated in paragraph (b) or (c) of the definition
of “input tax” in section two, the extent to which the tax concerned is input tax, as contemplated in the definition of
“input tax” in section two, shall be an amount which bears to the full amount of such tax the same ratio as the
intended use of such goods or services in the course of making taxable supplies bears to the total intended use of
such goods or services:
Provided that⎯
(a) where the intended use of goods or services in the course of making taxable supplies is equal to not less
than ninety per centum of the total intended use of such goods or services, the goods or services concerned may
for the purposes of this Act be regarded as having been acquired wholly for the purpose of making taxable
supplies; and
(b) where goods or services are deemed by paragraph (b) of subsection (3) of section eight to be successively
supplied, the extent to which the tax relating to any payment referred to in that section is input tax may be
estimated where the calculation cannot be made accurately until the completion of the supply of the goods or
services, and in such case such estimate shall be adjusted on completion of the supply, any amount of input tax
which has been overestimated being accounted for as output tax in the tax period during which the completion
occurs and any amount of input tax which has been underestimated being accounted for as input tax in that
period.
(2) Notwithstanding anything to the contrary in this Act, a registered operator shall not be entitled to deduct
from the sum of the amounts of output tax and refunds contemplated in subsection (3) of section fifteen, any amount
of input tax—
(a) in respect of goods or services acquired by such registered operator to the extent that such goods or services
are acquired for the purposes of entertainment:
Provided that this paragraph shall not apply where—
(i) such goods or services are acquired by the registered operator for making taxable supplies of en-
tertainment in the ordinary course of a trade which—
A. continuously or regularly supplies entertainment to clients or customers, other than in the
circumstances contemplated in paragraph (b), for a consideration to the extent that such
taxable supplies of entertainment are made for a charge which covers all direct and
indirect costs of such entertainment or is equal to the open market value of such supply
of entertainment, unless—
I. such costs or open market value is for bona fide promotion purposes not charged by
the registered operator in respect of the supply to recipients who are clients or
customers in the ordinary course of the trade, of entertainment which is in all
respects similar to the entertainment continuously or regularly supplied to clients
or customers for consideration; or
II. the goods or services were acquired by the registered operator for purposes of making
taxable supplies to such clients or customers of entertainment which consists of
the provision of any food and a supply of any portion of such food is subsequently
made to any employee of the registered operator or to any private voluntary or-
ganisation as all such food was not consumed in the course of making such taxa-
ble supplies;
B. supplies entertainment to any employee or office holder of the registered operator or any
connected person in relation to the registered operator, to the extent that such taxable
supplies of entertainment are made for a charge which covers all direct and indirect
costs of such entertainment;
(ii) such goods or services are acquired by the registered operator for consumption or enjoyment by
that registered operator, including, where the registered operator is a partnership, a member of such partnership, or
an employee or office holder of such registered operator for personal subsistence in respect of any night that such
registered operator or member is by reason of the registered operator’s trade or, in the case of such employee or
office holder, he is by reason of the duties of his employment or office, obliged to spend away from his usual place
of residence:
Provided that this provision shall not extend to expenditure for amusement or recreation;
(iii) such goods or services consist of a meal or refreshment supplied by the registered operator as
operator of any conveyance to a passenger in such conveyance during a journey, if such meal or refreshment is
supplied as part of or in conjunction with the transport service supplied by the registered operator and the supply of
such service is a taxable supply;
(iv) such goods or services consist of a meal or refreshment supplied by the registered operator as
organiser of a seminar or similar event to a participant in such seminar or similar event, if the supply of such meal
or refreshment is made during the course of or immediately before or after such seminar or similar event and a
charge which covers the cost of such meal or refreshment is made by the registered operator to the recipient;
(v) such goods or services are acquired by a local authority for the purpose of providing sporting or
recreational facilities or public amenities to the public in the circumstances referred to in subsection (5) of section
seven or for the purposes of the provision of the goods or services referred to in subparagraph (iv) of paragraph (c)
of the definition of “trade” in section two;
(vi) such goods or services are acquired by a private voluntary organisation, for the purpose of making
supplies in the furtherance of its aims and objects; or
(b) in respect of any fees or subscriptions paid by the registered operator in respect of membership of any club,
association or society of a sporting, social or recreational nature; or
(c) in respect of any goods or services acquired by a superannuation scheme referred to in section two, for the
purposes of the supply by such scheme of any medical or dental services or services directly connected with
such medical or dental services or of any goods necessary for or subordinate or incidental to the supply of any
such services; or
(d) in respect of any motor vehicle supplied to or imported by the registered operator:
Provided thatthis paragraph shall not apply where such motor vehicle is acquired by the registered operator—
(i) exclusively for the purposes of the trade or in the production of income of the registered operator
and of a type specified in the Charging Act or in regulations made in terms of section seventy-eight;
(ii) in the ordinary course of his or her trade as a motor dealer.
For the purposes of this paragraph a motor vehicle acquired by such registered operator for demonstration
purposes or for temporary use prior to a taxable supply by such registered operator shall be deemed to be
acquired exclusively for the purpose of making a taxable supply;
(dl) ….
[Paragraph (d1) inserted by Act 1 of 2014 and repealed by Act 10 of 2022]
(e) in respect of any amount of tax on the exportation of unbeneficiated, lithium, unbeneficiated hides, unbene-
ficiated platinum, uncut and cut dimensional stone, or medicinal cannabis paid by the registered operator in
terms of section 12B, 12C, 12D, 12E or 12F, or any other export tax of a like nature that may be enacted under
this Act.
[Paragraph (e) inserted by Act 5 of 2010 and substituted by Act 10 of 2022]
(3) Notwithstanding anything in subsection (5) of section fifteen, where a registered operator has made a supply
of goods as contemplated in subsection (9) of section seven and in respect of the acquisition thereof by the registered
operator a deduction of input tax under subsection (3) of section fifteen was denied in terms of subsection (2) of this
section, the registered operator shall not be required to account for output tax in relation to such supply.
(4) Where, but for this subsection, an amount qualifies or has qualified for a deduction under more than one
provision of this Act, a deduction of such amount, or any portion thereof, shall not be made more than once in the
calculation of the amount of tax payable by any person.
17 Adjustments
(1) Subject to subsection (2) of section seven, where—
(a) goods or services have been supplied to or imported by a registered operator; or
(b) goods have been manufactured, assembled, constructed or produced by him; or
(c) goods or services were deemed by subsection (4) to have been supplied to him;
(excluding goods or services in respect of the acquisition of which by the registered operator a deduction of input
tax was denied by subsection (2) of section sixteen or would have been denied if that section had been applicable
prior to the 1st January, 2004,) and such goods or services were acquired, manufactured, assembled, constructed or
produced by such registered operator wholly or partly for the purpose of consumption, use or supply in the course
of making taxable supplies or such goods were held or applied for that purpose, such goods or services shall if they
are subsequently applied by him—
(i) otherwise than in the circumstances contemplated in subsection (8) of section seven, wholly for a purpose
other than the said purpose; or
 (ii) wholly for a purpose in respect of which, if such goods or services had been acquired by him at the time of
such application, a deduction of input tax would have been denied in terms of subsection (2) of section sixteen;
be deemed to have been supplied by him by way of a taxable supply by him in the course of his trade:
Provided that this subsection shall not apply—
(a) to any capital goods or services which cost less than twenty-five million ZW dollars (fifty thousand US
dollars) or the prescribed amount, excluding tax; or
[Proviso(a) amended by Act 7 of 2021and Act 8 of 2022]
(b) where such goods or services were deemed to be supplied to the registered operator by subsection (4) if the
amount which was represented by “B” in the formula contemplated in that subsection was less than twenty-five
million when such goods or services were deemed to be supplied to such registered operator; or
[Proviso (b)Amended byAct 8 of 2022]
(c) where taxable supplies produced by the registered operator become exempt supplies by virtue of any
amendment of this Act
[Proviso substituted by Act 1 of 2018]
(2) Where—
(a) capital goods or services have been supplied to or imported by a registered operator; or
(b) capital goods have been manufactured, assembled, constructed or produced by him; or
(c) capital goods or services were deemed by subsection (4) to have been supplied to him;
(excluding goods or services in respect of the acquisition of which by the registered operator a deduction of input
tax was denied by subsection (2) of section sixteen or would have been denied if that section had been applicable
prior to the 1st January, 2004,) and such goods or services were acquired, manufactured, assembled, constructed or
produced by such registered operator wholly or partly for the purpose of consumption, use or supply in the course
of making taxable supplies or such goods were held or applied for that purpose, such goods or services shall, if the
extent of the application or use of such goods or services in the course of making taxable supplies, in respect of
which, if such goods or services had been acquired at the time of such application or use, a deduction of input tax
would not have been denied in terms of paragraph (a) of subsection (2) of section sixteen, is subsequently reduced
in relation to their total application or use, be deemed to have been supplied by him by way of a taxable supply by
him in the course of his trade at the time at which such reduction is deemed by subsection (6) to take place:
Provided that this subsection shall not apply to any capital goods or services which cost less than sixty
United States dollars or the equivalent Zimbabwe dollars at the prevailing exchange rate or the prescribed amount,
excluding tax, or where such goods or services were deemed to be supplied to the registered operator by subsec-
tion (4) if the amount which was represented by “B” in the formula contemplated in that subsection was less than
fifty thousand dollars when such goods or services were deemed to be supplied to such registered operator.
[Proviso amended by Act 7 of 2021, Act 8 of 2022 and s 57 of Act 13 of 2023]
(3) Notwithstanding anything in this section, to the extent that any registered operator has or is deemed to have
granted a benefit or advantage to an employee or the holder of any office as contemplated in paragraph (f) of the
definition of “gross income” in subsection (1) of section 8 of the Taxes Act, as read with the Thirteenth Schedule
to that Act, and such benefit or advantage consists of a supply of goods or services, the granting of that benefit or
advantage shall be deemed to be a supply of goods or services made by the registered operator in the course of a
trade carried on by the registered operator:
Provided that this subsection shall not apply to any such benefit or advantage to the extent that it⎯
(a) has arisen by virtue of any supply of goods or services which is an exempt supply in terms of section eleven
or is a supply which is charged with tax at the rate of zero per centum in terms of section ten or is a supply of
entertainment;
(b) is granted by the registered operator in the course of making exempt supplies.
(4) Where—
(a) prior to the 1st January, 2004,⎯
(i) goods or services have been supplied to or imported by a person; or
(ii) goods have been manufactured, assembled, constructed or produced by him;
and such goods or services were acquired, manufactured, assembled, constructed or produced or applied
by such person wholly for purposes other than that of consumption, use or supply in the course of making
supplies in the course of an activity which was a trade or would have been a trade if section two had been
applicable prior to the 1st January, 2004, or for a purpose in respect of which a deduction of input tax in respect
of such goods or services would have been denied in terms of subsection (2) of section sixteen if that section
had been applicable prior to the 1st January, 2004,; or
(b) after the 1st January, 2004,⎯
(i) goods or services have been supplied to or imported by a person and tax has been charged in respect
of such supply or importation; or
 (ii) goods have been manufactured, assembled, constructed or produced by him and tax has been
charged in respect of the supply of goods or services acquired by him for the purpose of such manufacturing, as-
sembling, construction or production; or
(iii) goods or services are deemed by subsection (1) or subsection (2) of section seven to have been
supplied by him;
and no deduction has been made in terms of subsection (3) of section fifteen in respect of or in relation to
such goods or services; or
(c) second-hand goods situated in Zimbabwe have been supplied, otherwise than under a taxable supply, to a
person under a sale on or after the 1st January, 2004, by a resident of Zimbabwe and no deduction has been
made in terms of subsection (3) of section fifteen in respect of such second-hand goods; and
such goods or services are subsequent to the 1st January, 2004, applied in any tax period by that person or, where
he is a member of a partnership, by the partnership, wholly or partly for consumption, use or supply in the course
of making taxable supplies, other than taxable supplies in respect of which, if such goods or services had been
acquired at the time of such application, a deduction of input tax would have been denied in terms of subsection (2)
of section sixteen, those goods or services shall be deemed to be supplied in that tax period to that person or the
partnership, as the case may be, and the Commissioner shall allow that person or the partnership, as the case may
be, to make a deduction in terms of subsection (3) of section fifteen of an amount determined in accordance with
the formula⎯
A × B × C × D,
in which formula—
“A” represents the tax fraction;
“B” represents the lesser of—
(a) the cost, including any tax forming part of such cost, to the registered operator of the ac-
quisition, manufacture, assembly, construction or production of those goods or services:
Provided that where the goods or services were acquired under a supply in respect of
which the consideration in money was in terms of subsection (4) of section nine deemed to
be the open market value of the supply, the cost of those goods or services shall be deemed
to include such open market value to the extent that it exceeds the consideration in money
for that supply;
or
(b) the open market value of the supply of those goods or services at the time when the supply
is deemed to be made;
“C” represents the ratio that, immediately after the supply so deemed to be made, the intended use of
the goods or services, as contemplated in subsection (1) of section sixteen, in the course of making taxable
supplies, other than taxable supplies in respect of which, if such goods or services had been acquired at the
time of such application, a deduction of input tax would have been denied in terms of subsection (2) of section
sixteen, bears to the total intended use of those goods or services, expressed as a percentage:
Provided that where the intended use of goods or services in the course of making taxable supplies,
other than taxable supplies in respect of which, if such goods or services had been acquired at the time of such
application, a deduction of input tax would have been denied in terms of subsection (2) of section sixteen, is
equal to not less than ninety per centum of the total intended use of such goods or services, such percentage
shall be deemed to be one hundred per centum;
“D” represents, where paragraph (c) of this subsection applies, the ratio that the amount paid, which
payment reduces or discharges any obligation (whether an existing obligation or an obligation which will arise
in the future) in respect of or consequent upon, whether directly or indirectly, the consideration in money for
the supply of second-hand goods, bears to the total consideration in money, expressed as a percentage:
Provided that—
(a) paragraph (b) of this subsection shall not apply where a registered operator has, only
as a result of not complying with subsection (2) of section fifteen, not been entitled to
make a deduction of input tax in terms of subsection (3) of section fifteen;
(b) where the second-hand goods referred to in paragraph (c) of this subsection consist of
fixed property in respect of the acquisition of which stamp duty is, in terms of the
Stamp Act, payable or would have been payable had an exemption from stamp duty,
whether in terms of the Stamp Act or any other Act of Parliament, not been applicable,
the amount determined in terms of this subsection shall not exceed the amount of stamp
duty, which is or would have been payable in respect of such acquisition;
(c) where the second-hand goods referred to in paragraph (c) of this subsection consist of
fixed property in respect of the acquisition of which stamp duty is, in terms of the
Stamp Act, payable, the deduction in terms of subsection (3) of section fifteen shall be
made only after such stamp duty has been paid.
 (5) Where—
(a) capital goods or services have been supplied to or imported by a registered operator; or
(b) capital goods have been manufactured, assembled, constructed or produced by him; or
(c) capital goods or services were deemed by subsection (4) to have been supplied to him;
and such goods or services were acquired, manufactured, assembled, constructed or produced or applied by such
registered operator partly for the purpose of consumption, use or supply in the course of making taxable supplies,
other than taxable supplies in respect of which, if such goods or services had been acquired at the time of such
application, a deduction of input tax would have been denied in terms of subsection (2) of section sixteen, or of
making supplies in the course of an activity which was a trade or would have been a trade if section two had been
applicable prior to the 1st January, 2004,, other than supplies in respect of which, if such goods or services had been
acquired at the time of such application, a deduction of input tax would have been denied in terms of subsection (2)
of section sixteen if that section had been applicable prior to the 1st January, 2004,, such goods or services shall, if
the extent of the application or use of such goods or services in the course of making taxable supplies, other than
taxable supplies in respect of which, if such goods or services had been acquired at the time of such application, a
deduction of input tax would have been denied in terms of subsection (2) of section sixteen, is subsequent to the 1st
January, 2004, increased in relation to their total application or use, be deemed to be supplied to him, and the
Commissioner shall allow the registered operator to make a deduction in terms of subsection (3) of section fifteen,
in the tax period during which such increase is deemed by subsection (6) to take place, of an amount determined in
accordance with the formula⎯
A × B × (C ⎯ D),
in which formula—
“A” represents the tax fraction;
“B” represents the lesser of—
(a) the⎯
(i) cost, including any tax forming part of such cost, to the registered operator of the ac-
quisition, manufacture, assembly, construction or production of those goods or ser-
vices:
Provided that where the goods or services were acquired under a supply in respect
of which the consideration in money was in terms of subsection (4) of section nine
deemed to be the open market value of the supply the cost of those goods or services
shall be deemed to include such open market value to the extent that it exceeds the
consideration in money for that supply; or
(ii) amount, where goods or services were deemed by subsection (4) to have been supplied
to the registered operator, which was represented by “B” in the formula contemplated
in that subsection when such goods or services were deemed to be supplied to the
registered operator; or
(iii) amounts, where the registered operator was at some time after the acquisition of the
goods or services required to make an adjustment contemplated in subsection (2) or
this subsection, represented by “A” in the formula contemplated in subsection (8) of
section nine or by “B” in the formula contemplated in this subsection respectively, in
the most recent adjustment made under subsection (2) or this subsection by the regis-
tered operator prior to such supply of goods or services so deemed to be made;
and
(b) the open market value of the supply of those goods or services at the time any increase in
the extent of the use or application of the goods or services is deemed by subsection (6) to
take place;
“C” represents the percentage that, during the twelve month period during which the increase in use
or application of the goods or services is deemed to take place, the use or application of the goods or services
for the purposes of making taxable supplies, other than taxable supplies in respect of which, if such goods or
services had been acquired at the time of such application, a deduction of input tax would have been denied in
terms of subsection (2) of section sixteen, was of the total use or application of the goods:
Provided that where the said percentage does not exceed the percentage contemplated in “D” by more than
ten per centum of the total use or application, the said percentage shall be deemed to be the percentage deter-
mined in “D”;
“D” represents the percentage that the use or application of the goods or services for the purposes of
making taxable supplies, other than taxable supplies in respect of which, if such goods or services had been
acquired at the time of such application, a deduction of input tax would have been denied in terms of subsection
(2) of section sixteen, was of the total use or application of such goods or services determined in terms of
subsection (1) of section sixteen, subsection (8) of section nine, or subsection (4) of this section or this
 subsection, whichever was applicable in the period immediately preceding the twelve month period contem-
plated in “C”:
Provided that⎯
(a) this subsection shall not apply to any capital goods or services which cost less than fifty
thousand United States dollars or the equivalent Zimbabwe dollars at the prevailing
exchange rate or the prescribed amount, excluding tax, or where such goods or services
were deemed to be supplied to the person by subsection (4) if the amount which was
represented by “B” in the formula contemplated in that subsection was less than fifty
thousand United States dollars or the equivalent in Zimbabwe dollars at the prevailing
exchange rate or the prescribed amount when such goods or services were deemed to
be supplied to such person; or
[Paragraph amended by section 57 of Act 13 0f 2023]
(al) this subsection does not apply where taxable supplies produced by the registered op-
erator become exempt supplies by virtue of any amendment of this Act;
[Paragraph inserted by Act 1 of 2018]
(b) where such goods or services consist of second-hand goods contemplated in the pro-
viso to paragraph (b) of the definition of “input tax” in section two, the amount deter-
mined in terms of this subsection shall not exceed the amount of stamp duty which is
or would have been payable, less any amount which has previously been deducted in
terms of in terms of subparagraph (ii) of paragraph (a) of subsection (3), or subpara-
graph (i) of paragraph (b) of subsection (3) of section fifteen, or subsection (4) of this
section, in respect of such acquisition, original issue or registration of transfer, as the
case may be.
(6) For the purposes of subsections (2) and (5), any reduction or increase in the extent of the application or use
of goods or services shall be deemed to take place on the last day of the registered operator’s year of assessment as
defined in section two of the Taxes Act or, if the registered operator is not an income tax payer, on the last day of
December:
Provided that where a registered operator who is not an income tax payer draws up annual financial statements
in respect of a year or other period ending on a date other than the last day of December any reduction or increase
in the extent of the application or use of goods or services shall be deemed to take place on such first-mentioned
date.
(7) For the purposes of subsections (2) and (5) of this section, the extent of the application or use of any goods
or services for the purpose of making taxable supplies shall be determined with reference to the application or use
of such goods or services during the twelve-month period ending on the day any reduction or increase in the extent
of the application or use of such goods or services is deemed by subsection (6) to have taken place:
Provided that⎯
(a) where any goods or services are acquired, manufactured, assembled, constructed or produced by a regis-
tered operator or are deemed under subsection (4) to have been supplied to that registered operator during such
twelve month period, the extent of the application or use of such goods or services shall be determined with
reference to the period ending on the day contemplated in subsection (6) and commencing on the date such
goods or services are acquired, manufactured, assembled, constructed or produced by the registered operator
or are deemed to be supplied to the registered operator under subsection (4);
(b) where the period between the 1st January, 2004, and the date contemplated in subsection (6) is less than a
twelve-month period it shall, for the purposes of this section, be deemed to be a twelve month period.
(8) Where a deduction of an amount contemplated in paragraph (b) of the definition of “input tax” in section
two has been made by any registered operator in respect of the sale to him of any second-hand goods and subse-
quently—
(a) that sale is cancelled; or
(b) the nature of that sale is fundamentally varied or altered; or
(c) the previously agreed consideration for that sale is reduced; or
(d) the second-hand goods or part of the second-hand goods sold are returned to the supplier;
and, as a result of the occurrence of one or more of the above mentioned events, the input tax actually deducted in
relation to such sale exceeds the input tax properly deductible by the registered operator, either the amount of that
excess shall be deemed to be tax charged in relation to a taxable supply made by that registered operator in the tax
period during which the said event has occurred, at the rate of tax which applied when the said deduction was made,
or the amount of input tax deducted in terms of subsection (3) of section fifteen in the said tax period shall be reduced
by the amount of the said excess.
18 Adjustments in consequence of acquisition of going concern wholly or partly for purposes other than
making taxable supplies
(1) Where—
 (a) a trade or part of a trade has been supplied to any registered operator; and
(b) the supply of such trade or part was charged with tax at the rate of zero per centum in terms of paragraph
(e) of subsection (1) of section ten; and
(c) such trade or part, as the case may be, or any goods or services which formed part of such trade or part are
acquired by such registered operator wholly or partly for a purpose other than for consumption, use or supply
in the course of making taxable supplies;
such trade, part, goods or services, as the case may be, shall be deemed to have been supplied by him by way of a
taxable supply by him in the course of his trade:
Provided that where the intended use of such trade, part, goods or services, as the case may be, in the course of
making taxable supplies is equal to not less than ninety per centum of the total intended use of such trade, part,
goods or services, as the case may be, the trade, part, goods or services concerned may for the purposes of this Act
be regarded as having been acquired wholly for the purpose of consumption, use or supply in the course of making
taxable supplies.
(2) Notwithstanding anything in this Act, the value of the supply deemed by subsection (1) to have been made
by the registered operator, shall be the full cost to such registered operator of acquiring such trade, part, goods or
services, as the case may be, reduced by an amount which bears to the amount of such full cost the same ratio as the
intended use or application of the trade, part, goods or services in the course of making taxable supplies bears to the
total intended use or application of the trade, part, goods or services:
Provided that⎯
(a) the cost to such registered operator of acquiring such trade, part, goods or services may be reduced by any
amount which represents an appropriate allocation of such full cost to the acquisition of any goods or services
which form part of such trade or part of a trade and in respect of the acquisition of which by the registered
operator a deduction of input tax would be denied by section subsection (2) of section sixteen; or
(b) where such trade, part, goods or services were acquired—
(i) by means of a supply made by a registered operator for no consideration or for a consideration in
money which is less than the open market value of the supply; and
(ii) in circumstances where the supplier and the recipient are connected persons;
the cost of such trade, part, goods or services shall be deemed to be the open market value of the supply of
such trade, part, goods or services.
(3) Notwithstanding anything in this Act, the supply deemed by subsection (1) to have been made by the reg-
istered operator shall be deemed to be made in the tax period in which the supply of the trade or part of a trade is
made.
(4) For the purposes of this section and subsection (9) of section nine and subsections (4) and (5) of section
seventeen, the cost to the registered operator of any goods or services acquired by a registered operator in the cir-
cumstances contemplated in subsection (1) shall be deemed to be an amount equal to the aggregate of an amount
which represents an appropriate allocation of the full cost to the registered operator of the trade or part of a trade to
those specific goods or services and an amount determined by applying the rate of tax applicable at the time of
supply contemplated in subsection (3) to the amount of such appropriate allocation.
19 Goods or services acquired before incorporation
Any company, being a registered operator, shall, where any amount of tax has been charged in terms of section
six in relation to the acquisition of goods or services for or on behalf of that company or in connection with the
incorporation of that company, and those goods or services were acquired prior to incorporation by a person who—
(a) was reimbursed by the company for the whole amount of the consideration paid for the goods or services;
and
(b) acquired those goods or services for the purpose of a trade to be carried on by the company and has not
used those goods or services for any purpose other than carrying on such trade;
be deemed to be the recipient of the goods or services and to have paid the tax so charged as if the supply or the
payment of the tax had been made during the tax period in which the reimbursement referred to in paragraph (a) is
made:
Provided that this section shall not apply in relation to any goods or services where⎯
(a) the supply of those goods or services by that person to the company is a taxable supply, or is a supply of
second-hand goods not being a taxable supply; or
(b) those goods or services were so acquired more than six months prior to the date of incorporation of the
company; or
(c) the company does not hold sufficient records to establish the particulars relating to the deduction to be
made.
20 Tax invoices
(1) Except as otherwise provided in this section, a supplier, being a registered operator, making a taxable sup-
ply, other than a supply contemplated in subsection (9) of section seven, to a recipient shall provide that recipient
within thirty days from the date of supply with a tax invoice containing such particulars as are specified in this
section:
Provided that—
(a) it shall not be lawful to issue more than one tax invoice for each taxable supply;
(b) if a registered operator claims to have lost the original tax invoice, the supplier or the recipient, as the case
may be, may provide a copy clearly marked “copy”.
(2) Where a recipient, being a registered operator, creates a document containing the particulars specified in
this section and purporting to be a tax invoice in respect of a taxable supply of goods or services made to the recipient
by a supplier, being a registered operator, that document shall be deemed to be a tax invoice provided by the supplier
under subsection (1) of this section where—
(a) the Commissioner has granted prior approval for the issue of such documents by a recipient or recipients
of a specified class in relation to the taxable supplies or taxable supplies of a specified category to which the
documents relate; and
(b) the supplier and the recipient agree that the supplier shall not issue a tax invoice in respect of any taxable
supply to which this subsection applies; and
(c) such document is provided to the supplier and a copy thereof is retained by the recipient:
Provided that where a tax invoice is issued in accordance with this subsection, any tax invoice issued by the
supplier in respect of that taxable supply shall be deemed not to be a tax invoice for the purposes of this Act.
(3) Where a supply of goods is deemed by subsection (9) of section seven to be made and both the recipient
and the supplier in relation to that supply are registered operators, the recipient shall, within thirty days after the day
on which such supply is deemed by subsection (9) of section seven to be made, create and furnish to the supplier a
document which contains the particulars specified in this section, and such document shall for the purposes of this
Act be deemed to be a tax invoice provided by the supplier under subsection (1) of this section.
(4) Except as the Commissioner may otherwise allow, and subject to this section, a tax invoice shall contain
the following particulars⎯
(a) the words “fiscal tax invoice” in a prominent place (or other word or phrase employed by the fiscalised
recording regulations for the purpose of denoting an invoice of tax for the making of taxable supplies) in a
prominent place;
[Definition substituted by Act 4 of 2012 and by Act 7 0f 2021]
(b) the name, address and registration number of the supplier;
(c) name and address of the recipient and, if the recipient is a registered operator, the registration number of
the recipient;
[Paragraph amended by section 27 of Act 29 of 2004]
(d) an individual serialised number and the date upon which the tax invoice is issued;
(e) a description of the goods or services supplied;
(f) the quantity or volume of the goods or services supplied;
(g) either—
(i) the value of the supply, the amount of tax charged and the consideration for the supply; or
(ii) 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.
(5) Notwithstanding any other provision of this Act, a supplier shall not be required to provide a tax invoice if
the total consideration for a supply is in money and does not exceed ten United States dollars or the equivalent
Zimbabwe dollars at the prevailing exchange rate or the prescribed amount at the prevailing rate
[Subsection amended by Act 7 of 2021, Act 8 of 2022 and s 57 of Act 13 of 2023]
(6) Where the Commissioner is satisfied that there are or will be sufficient records available to establish the par-
ticulars of any supply or category of supplies, and that it would be impractical to require that a full tax invoice be
issued in terms of this section, the Commissioner may, subject to such conditions as he may consider necessary,
direct that—
(a) any one or more of the particulars specified in subsection (4) shall not be contained in a tax invoice; or
(b) a tax invoice is not required to be issued.
(7) Notwithstanding anything in this section, where a supplier makes a supply, not being a taxable supply, of
second-hand goods or of goods as contemplated in subsection (9) of section seven, to a recipient, being a
registered operator, the recipient shall maintain sufficient records to enable the following particulars to be
ascertained⎯
(a) the name and address of the supplier, and where the supplier is—
(i) a natural person, his identity number; or
(ii) not a natural person, the name and identity number of the natural person representing the supplier
in respect of the supply and any legally allocated registration number of the supplier:
 Provided that the recipient—
A. shall verify such name and identity number of any such natural person with
reference to his identity document, including any duplicate identity document, issued in terms of section 7 of
the National Registration Act [Chapter 10:17], and, where the value of the supply is (10 USD) (or the prescribed
amount) or more, retain a photocopy of such identity document; or
B. shall verify such name and registration number of any supplier, other than a nat-
ural person, with reference to its business letterhead or other similar document and, where the value of the supply
is ten United States dollars or the equivalent in Zimbabwe dollars at the prevailing exchange rate or (the prescribed
amount) or more, retain a photocopy of such name and registration number appearing on such letterhead or docu-
ment; and
[Proviso A and B amended by s 57 of Act 13 of 2023]
(b) the date upon which the second-hand goods were acquired or the goods were repossessed, as the case may
be;
(c) a description of the goods;
(d) the quantity or volume of the goods;
(e) the consideration for the supply:
Provided that this subsection shall not require that recipient to keep such records where the total consideration
for that supply is in money and does not exceed ten United States dollars or the equivalent in Zimbabwe dollars at
the prevailing exchange rate or the prescribed amount at the prevailing rate.
[Proviso amended by section 57 of act 13 of 2023
21 Credit and debit notes
(1) This section shall apply where, in relation to the supply of goods or services by any registered operator—
(a) that supply has been cancelled; or
(b) the nature of that supply has been fundamentally varied or altered; or
(c) the previously agreed consideration for that supply has been altered by agreement with the recipient,
whether due to the offer of a discount or for any other reason; or
(d) the goods or services or part of the goods or services supplied have been returned to the supplier, including
the return to a registered operator of a returnable container, the registered operator in such case being deemed
for the purposes of this Act to have made the supply of the container in respect of which the deposit was charged,
whether the supply was made by him or any other person;
and the supplier has—
(i) provided a tax invoice in relation to that supply and the amount shown therein as tax charged on that supply
is incorrect in relation to the amount properly chargeable on that supply as a result of the occurrence of any one
or more of the above-mentioned events; or
(ii) furnished a return in relation to the tax period in respect of which output tax on that supply is attributable,
and has accounted for an incorrect amount of output tax on that supply in relation to the amount properly
chargeable on that supply as a result of the occurrence of any one or more of the above-mentioned events.
(2) Where a supplier has accounted for an incorrect amount of output tax as contemplated in subsection (1),
that supplier shall make an adjustment in calculating the tax payable by the supplier in the return for the tax period
during which it has become apparent that the output tax is incorrect, and if—
(a) the output tax properly chargeable in relation to that supply exceeds the output tax actually accounted for
by the supplier, the amount of that excess shall be deemed to be tax charged by that supplier in relation to a
taxable supply attributable to the tax period in which the adjustment is to be made, and shall not be attributable
to any prior tax period; or
(b) the output tax actually accounted for exceeds the output tax properly chargeable in relation to that supply,
that supplier shall either make a deduction in terms of subsection (3) of section fifteen, in respect of the amount
of that excess, such amount being deemed for the purposes of that section to be input tax, or reduce the amount
of output tax attributable to the said tax period in terms of subsection (4) of section fifteen, by the amount of
that excess:
Provided that the said deduction shall not be made where the excess tax has been borne by a recip-
ient of goods or services supplied by the supplier and the recipient is not a registered operator, unless the amount
of the excess tax has been repaid by the supplier to the recipient, whether in cash or by way of a credit against
any amount owing to the supplier by the recipient.
(3) Subject to this section, where a tax invoice has been provided as contemplated in subparagraph (i) of para-
graph (d) of subsection (1), and—
(a) the amount shown as tax charged in that tax invoice exceeds the actual tax charged in respect of the supply
concerned, the supplier shall provide the recipient with a credit note, containing the following particulars⎯
(i) the words “credit note” in a prominent place;
(ii) the name, address and registration number of the registered operator;
 (iii) the name and address of the recipient, except where the credit note relates to a supply in respect of
which a tax invoice contemplated in subsection (4) of section twenty, was issued;
(iv) the date on which the credit note was issued;
(v) either—
A. the amount by which the value of the said supply shown on the tax invoice has been reduced
and the amount of the excess tax; or
B. where the tax charged in respect of the supply is calculated by applying the tax fraction to
the consideration, the amount by which the consideration has been reduced and either the
amount of the excess tax or a statement that the reduction includes an amount of tax and
the rate of the tax included;
(vi) a brief explanation of the circumstances giving rise to the issuing of the credit note;
(vii) information sufficient to identify the transaction to which the credit note refers;
(b) the actual tax charged in respect of the supply concerned exceeds the tax shown in the tax invoice as
charged, the supplier shall provide the recipient with a debit note, containing the following particulars⎯
(i) the words “debit note” in a prominent place;
(ii) the name, address and registration number of the registered operator;
(iii) the name and address of the recipient, except where the debit note relates to a supply in respect of
which a tax invoice contemplated in subsection (4) of section twenty-three, was issued;
(iv) the date on which the debit note was issued;
(v) either—
A the amount by which the value of the said supply shown on the tax invoice has been in-
creased and the amount of the additional tax; or
B where the tax charged in respect of the supply is calculated by applying the tax fraction to
the consideration, the amount by which the consideration has been increased and either the
amount of the additional tax or a statement that the increase includes an amount of tax and
the rate of the tax included;
(vi) a brief explanation of the circumstances giving rise to the issuing of the debit note;
(vii) information sufficient to identify the transaction to which the debit note refers:
Provided that—
A. it shall not be lawful to issue more than one credit note or debit note for the amount of the excess;
B. if any registered operator claims to have lost the original credit note or debit note, the supplier or recipient,
as the case may be, may provide a copy clearly marked “copy”;
C. a supplier shall not be required to provide a recipient with a credit note contemplated in paragraph (a) of
this subsection in any case where and to the extent that the amount of the excess referred to in that paragraph
arises as a result of, the recipient taking up a prompt payment discount offered by the supplier, if the terms of
the prompt payment discount offer are clearly stated on the face of the tax invoice.
(4) Where a recipient, being a registered operator, creates a document containing the particulars specified in
this section and purporting to be a credit note or a debit note in respect of a supply of goods or services made to the
recipient by a supplier, being a registered operator, the document shall be deemed to be a credit note or, as the case
may be, a debit note provided by the supplier under subsection (3) where—
(a) the Commissioner has granted prior approval for the issue of such documents by a recipient or recipients
of a specified class in relation to the supplies or supplies of a specified category to which the documents relate;
and
(b) the supplier and the recipient agree that the supplier shall not issue a credit note or, as the case may be, a
debit note in respect of any supply to which this subsection applies; and
(c) a copy of any such document is provided to the supplier and another copy is retained by the recipient:
Provided that⎯
(i) where a credit note is issued in accordance with this subsection, any credit note issued by the
supplier in respect of that supply shall be deemed not to be a credit note for the purposes of this Act;
(ii) where a debit note is issued in accordance with this subsection, any debit note issued by the sup-
plier in respect of that supply shall be deemed not to be a debit note for the purposes of this Act.
(5) Where the Commissioner is satisfied that there are or will be sufficient records available to establish the
particulars of any supply or category of supplies and that it would be impractical to require that a full credit note or
debit note be issued in terms of this section, the Commissioner may, subject to any conditions that the Commissioner
may consider necessary, direct—
(a) that any one or more of the particulars specified in paragraph (a) or, as the case may be, paragraph (b) of
subsection (3) shall not be contained in a credit note or, as the case may be, a debit note; or
(b) that a credit note or, as the case may be, a debit note is not required to be issued.
 (6) Where any recipient, being a registered operator, has been issued with a credit note in terms of paragraph
(a) of subsection (3), or has written or other notice or otherwise knows that any tax invoice which the registered
operator holds is incorrect as a result of any one or more of the events specified in any of paragraphs (a), (b), (c) or
(d) of subsection (1) and has made a deduction of any amount of input tax in any tax period in respect of the supply
of goods or services to which the credit note or that notice or other knowledge, as the case may be, relates, either
the amount of the excess referred to in paragraph (a) of subsection (3) shall be deemed to be tax charged in relation
to a taxable supply made by the recipient attributable to the tax period in which the credit note was issued, or that
notice or, as the case may be, other knowledge was received, or the amount of input tax deducted in terms of sub-
section (3) of section fifteen in the last-mentioned tax period shall be reduced by the amount of the said excess, to
the extent that the input tax deducted in the first-mentioned tax period exceeds the output tax properly charged.
(7) Where any recipient, being a registered operator, has been issued with a debit note in terms of paragraph
(b) of subsection (3) and has made a deduction of any amount of input tax in any tax period in respect of the supply
of goods or services to which that debit note relates, the recipient may, subject to section sixteen, make a deduction
of input tax in terms of subsection (3) of section fifteen in respect of the amount of the excess referred to in paragraph
(b) of subsection (3) in the tax period in which the debit note is issued, to the extent that the output tax properly
charged exceeds the input tax deducted.
22 Irrecoverable debts
(1) Where a registered operator—
(a) has made a taxable supply for consideration in money; and
(b) has furnished a return in respect of the tax period for which the output tax on the supply was payable and
has properly accounted for the output tax on that supply as required under this Act; and
(c) has written off so much of the said consideration as has become irrecoverable;
the registered operator may make a deduction in terms of subsection (3) of section fifteen, of that portion of the
amount of tax charged in relation to that supply as bears to the full amount of such tax the same ratio as the amount
of consideration so written off as irrecoverable bears to the total consideration for the supply, the deduction so made
being deemed for the purposes of the said section to be input tax:
Provided that—
(i) where tax charged in respect of a supply of goods under an instalment credit agreement has become
irrecoverable, any deduction in terms of subsection (3) of section fifteen as provided for in this section, shall be
restricted to the tax content of the amount which has become irrecoverable in respect of the cash value of such
supply, as applicable in respect of that agreement in terms of subsection (6) of section nine;
(ii) the amount which has become irrecoverable in respect of such cash value shall be deemed to be an
amount equal to the balance of the cash value remaining after deducting therefrom so much of the sum of the
payments made by the debtor in terms of the said agreement as, on the basis of an apportionment in accordance with
the rights and obligations of the parties to the said instalment credit agreement, may properly be regarded as having
been made in respect of the cash value;
(iii) the said tax content shall be an amount calculated by applying the tax fraction, as applicable at the
time the supply under the said instalment credit agreement was in terms of in terms of paragraph (c) of subsection
(3) of section eight deemed to have taken place, to the amount deemed as aforesaid to be irrecoverable in respect of
such cash value;
(iv) a registered operator who has transferred an account receivable at face value on a⎯
(i) non-recourse basis to any other person, shall not make any deduction in respect of such transfer in
terms of this subsection; or
(ii) recourse basis to any other person, may make a deduction in terms of this subsection only when
such account is receivable and is transferred back to him and he has written off so much of the consideration as has
become irrecoverable;
(v) the deduction provided for in this subsection shall not be made in terms of subsection (3) of section
fifteen in respect of any amount which has become irrecoverable in respect of an instalment credit agreement if the
registered operator has repossessed the goods supplied in terms of that agreement.
(2) Where a registered operator—
(a) has made a taxable supply for consideration in money; and
(b) has furnished a return in respect of the tax period for which the output tax on the supply was payable at the
rate of tax referred to in subsection (1) of section six, and has properly accounted for the output tax on that
supply as required in terms of this Act; and
(c) has transferred the account receivable relating to such taxable supply at face value to another registered
operator, hereinafter referred to as “the recipient”, on a non-recourse basis and any amount of the face value,
excluding any amount of finance charges or collection costs, of such account receivable has been written off as
irrecoverable by the recipient;
the recipient may make a deduction in terms of subsection (3) of section fifteen, of an amount equal to the tax
fraction, being the tax fraction applicable at the time such taxable supply is deemed to have been made, of such face
value, limited to the amount paid by the recipient in respect of such face value, written off by him, the deduction so
made being deemed for the purposes of the said section to be input tax.
(3) Where any amount in respect of which a deduction has been made in accordance with subsection (1) is at
any time wholly or partly recovered by the registered operator, or becomes recoverable by him by virtue of the
reassignment to him of the underlying debt, that portion of the amount of such deduction as bears to the full amount
of such deduction the same ratio as the amount of the irrecoverable debt recovered or reassigned bears to the debt
written off shall be deemed to be tax charged in relation to a taxable supply made during the tax period in which the
debt is wholly or partly recovered or assigned to such registered operator.
(4) Where a registered operator who is required to account for tax payable on an invoice basis in terms of
section fourteen—
(a) has made a deduction of input tax in terms of subsection (3) of section fifteen in respect of a taxable supply
of goods or services made to him; and
(b) has, within a period of twelve months after the expiry of the tax period within which such deduction was
made, not paid the full consideration in respect of such supply;
an amount equal to the tax fraction, as applicable at the time of such deduction, of that portion of the consideration
which has not been paid shall be deemed to be tax charged in respect of a taxable supply made in the next following
tax period after the expiry of the period of twelve months:
Provided that the period of twelve months shall, if any contract in writing in terms of which such supply was
made provides for the payment of consideration or any portion thereof to take place after the expiry of the tax period
within which such deduction was made, in respect of such consideration or portion be calculated as from the end of
the month within which such consideration or portion was payable in terms of that contract.
(5) If a registered operator who has accounted for tax payable in accordance with subsection (4) at any time
thereafter pays any portion of the consideration in respect of the supply in question, he may in terms of subsection
(3) of section fifteen make a deduction of input tax of an amount equal to the tax fraction, as applicable at the time
of the deduction contemplated in paragraph (a) of subsection (4), of that portion of the consideration so paid.
PART IV
REGISTRATION

23 Registration of persons making supplies in the course of trades

(1) Every person who, on or after the 1st January, 2004, carries on any trade and is not registered, becomes
liable to be registered—
(a) at the end of any month where the total value of taxable supplies made by that person in the period of twelve
months ending at the end of that month in the course of carrying on of business, has exceeded twenty-five
thousand United States dollars or the equivalent in Zimbabwe dollars at the prevailing exchange rate of ex-
change or the prescribed amount;
[Paragraph amended by Act 7 of 2021, Act 8 of 2022, s 20 of Act 13 and 57 of 2023]
(b) at the commencement of any month where there are reasonable grounds for believing that the total value
of the taxable supplies to be made by that person in the period of twelve months reckoned from the commence-
ment of the said month will exceed the above-mentioned amount:
Provided that—
(a) the total value of the taxable supplies of the registered operator within the period of twelve months referred
to in subparagraph (a) or the period of twelve months referred to an subparagraph (b) shall not be deemed to
have exceeded or be likely to exceed the amount of five hundred thousand dollars or the prescribed amount,
where the Commissioner is satisfied that the said total value will exceed or is likely to exceed such amount
solely as a consequence of—
(i) any cessation of, or any substantial and permanent reduction in the size or scale of, any trade
carried on by that person; or
(ii) the replacement of any plant or other capital asset used in any trade carried on by that person; or
(iii) abnormal circumstances of a temporary nature;
(b) in calculating the total value of the taxable supplies of a clearing agent, it shall be deemed (notwithstanding
anything to the contrary) that, on every bill of entry in the preceding period of twelve months the clearing agent
charged a clearance fee of at least fifty dollars United States dollars (or other prescribed amount).
[Proviso substituted by Act 8 of 2015]
(2) Every person who, in terms of subsection (1) or section fifty-two, becomes liable to be registered shall not
later than thirty days after becoming so liable apply to the Commissioner for registration in such application form
as may be prescribed or as the Commissioner may direct and provide the Commissioner with such further particulars
and any documentation as the Commissioner may require in such application form for the purpose of registering
that person:
Provided that where—
(a) a person who applies for registration under this subsection has not provided all particulars and documenta-
tion as required by the Commissioner, that person shall be deemed not to have applied for registration until he
has provided all such particulars and documentation to the Commissioner;
(b) such person is not a resident of Zimbabwe, such person shall be deemed not to have applied for registration
until he has—
(i) appointed a representative registered operator as contemplated in paragraph (f) of subsection (1)
of section forty-seven in Zimbabwe and furnished the Commissioner with the particulars of such representative
registered operator;
(ii) opened a banking account with any bank, building society or other similar institution for the pur-
poses of his trade carried on in Zimbabwe and furnished the Commissioner with the particulars of such banking
account.
(3) Notwithstanding subsections (1) and (2), every person who satisfies the Commissioner that, on or after the
1st January, 2004,—
(a) that person is carrying on any trade; or
(b) that person intends to carry on any trade from a specified date;
may apply to the Commissioner in the prescribed form for registration under this Act and provide the Commissioner
with such further particulars as the Commissioner may require for the purpose of registering that person.
(4) Where any person has—
(a) applied for registration in accordance with subsection (2) or (3) and the Commissioner is satisfied that that
person is eligible to be registered in terms of this Act, that person shall be a registered operator for the purposes
of this Act with effect from such date as the Commissioner may determine; or
(b) not applied for registration in terms of subsection (2) and the Commissioner is satisfied that that person is
liable to be registered in terms of this Act, that person shall be a registered operator for the purposes of this Act
with effect from the date on which that person first became liable to be registered in terms of this Act:
Provided that the Commissioner may, having regard to the circumstances of the case, determine
that person to be a registered operator from such later date as the Commissioner may consider equitable.
(5) Notwithstanding anything to the contrary in this Act, where any trade is carried on by any association not
for gain in branches or divisions, or separate trades are carried on by that association, that association may apply in
writing to the Commissioner for any such branch, division or separate trade to be deemed to be a separate person
for the purposes of this section, and if every such branch, division or separate trade maintains an independent system
of accounting and can be separately identified by reference to the nature of the activities carried on or the location
of that branch, division or separate trade, every such branch, division or separate trade shall be deemed to be a
separate person, and not a part of the association, and, where any such branch, division or separate trade is deemed
to be a separate person under this subsection, any trade carried on by that branch or division or any separate trade
carried on by the association shall, to that extent, be deemed not to be carried on by the association concerned.
(6) The provisions of this Act relating to the determination of the value of any supply of goods or services,
whether such supply is made before or on or after the 1st January, 2004, shall apply for the purposes of this section,
but no regard shall be had to any tax charged in respect of any such supply:
Provided that any supply of services contemplated in terms of paragraph (n) of subsection (2) of section ten
shall for the purposes of this section be deemed not to be a taxable supply.
(7) Where the Commissioner is satisfied that any person who has applied for registration in terms of subsection
(3) is not eligible to be registered in terms of this Act or should not be registered by reason of the fact that such
person—
(a) has no fixed place of abode or business; or
(b) does not keep proper accounting records relating to any trade carried on by him; or
(c) has not opened a banking account with any bank, building society or other similar institution for the pur-
poses of any trade carried on by him; or
(d) has previously been registered as a registered operator in respect of any trade, whether in terms of this Act
or in terms of the repealed Act, but failed to perform his duties under either of the said Acts in relation to such
trade;
the Commissioner may refuse to register the said person as a registered operator in terms of this Act and shall give
written notice to that person of such refusal.
[For moratorium on punitive application of section 23 – see section 27 of Act 3 of 2017]
24 Cancellation of registration
(1) Subject to subsection (2), every registered operator shall cease to be liable to be registered where the Com-
missioner is satisfied that the total value of the registered operator’s taxable supplies in the period of twelve months
commencing at the beginning of any tax period of the registered operator will be not more than the amounts referred
to in subsection (1) of section twenty-three.
(2) Every registered operator who wishes to have his registration cancelled in the circumstances contemplated
in subsection (1), may request the Commissioner in writing to cancel his registration, and if the Commissioner is
satisfied as contemplated in subsection (1), the Commissioner shall cancel the registered operator’s registration with
effect from the last day of the tax period during which the Commissioner was so satisfied, or from such other date
as may be determined by the Commissioner, and shall notify the registered operator of the date on which the can-
cellation of the registration takes effect.
(3) Every registered operator who ceases to carry on all trades shall notify the Commissioner of that fact within
twenty-one days of the date of such cessation and the Commissioner shall cancel the registration of such registered
operator with effect from the last day of the tax period during which all such trades ceased, or from such other date
as may be determined by the Commissioner:
Provided that the Commissioner shall not at any time cancel the registration of any such registered operator if
there are reasonable grounds for believing that the registered operator will carry on any trade at any time within
twelve months from the date of such cessation.
(4) Any notification by a registered operator in terms of subsection (3) shall be made in writing to the Com-
missioner and shall state the date upon which that registered operator ceased to carry on all trades and whether or
not that registered operator intends to carry on any trade within twelve months from that date.
(5) Where the Commissioner is satisfied that a registered operator is not carrying on any trade the Commis-
sioner may cancel such registered operator’s registration with effect from the last day of the tax period during which
the Commissioner is so satisfied, or from such other date as may be determined by the Commissioner.
(6) Where any person has been registered as a registered operator in consequence of an application made by
him under subsection (3) of section twenty-three and subsequent to the registration of that person as a registered
operator it appears to the Commissioner that such person’s registration should be cancelled by reason of any of the
circumstances referred to in subsection (7) of section twenty-three, the Commissioner may cancel such person’s
registration with effect from a date determined by the Commissioner:
Provided that where such person lodges an objection against the Commissioner’s decision under this subsection
the cancellation of that person’s registration shall not take effect until such time as the Commissioner’s decision
becomes final and conclusive.
(7) The Commissioner shall give written notice to the person concerned of his decision to cancel such person’s
registration in terms of this section or of his refusal to cancel such registration.
25 Registered operator to notify change of status
Subject to this Act, every registered operator shall within twenty-one days and in the prescribed form notify the
Commissioner in writing of—
(a) any change in the name, address, constitution or nature of the principal trade or trades of that registered
operator;
(b) any change of address at or from which, or the name in which, any trade is carried on by that registered
operator;
(c) any change whereby that registered operator ceases to satisfy the circumstances contemplated in the proviso
to subsection (2) of section fourteen;
(d) any change whereby paragraph (a) of subsection (5) of section twenty-seven becomes applicable in the case
of that registered operator:
Provided that this section shall not apply to the notification of any changes in the ownership of any company.
26 Liabilities not affected by person ceasing to be registered operator
The obligations and liabilities under this Act of any person in respect of anything done, or omitted to be done,
by that person while that person is a registered operator shall not be affected by the fact that that person ceases to
be a registered operator, or by the fact that, being registered as a registered operator, the Commissioner cancels that
person’s registration as a registered operator.
PART V
RETURNS, PAYMENTS AND ASSESSMENTS

27 Tax period
(1) For the purposes of this section—
“Category A” means the category of registered operators whose tax periods are periods of two months ending
on the last day of the months of January, March, May, July, September and November of the calendar year;
“Category B” means the category of registered operators whose tax periods are periods of two months ending
on the last day of the months of February, April, June, August, October and December of the calendar year;
 “Category C” means the category of registered operators whose tax periods are periods of one month ending
on the last day of each of the twelve months of the calendar year;
“Category D” means the category of registered operators who have made written applications for tax periods
other than those of Category A, B or C, and whose tax periods end on the last day of such other months as the
Commissioner may approve.
(2) For the purposes of paragraph (a) of subsection (5) and paragraph (c) of subsection (6)—
(a) any provision of this Act relating to the determination of the value of any supply of goods or services,
whether such supply is made before or on or after the 1st January, 2004, shall apply for the purposes of this
paragraph, but no regard shall be had to any tax charged in respect of such supply; and
(b) the total value of the taxable supplies of a registered operator within any period of twelve months referred
to in paragraph (a) of subsection (5) and paragraph (c) of subsection (6) shall not be deemed to have exceeded
or be likely to exceed twenty-five thousand United States dollars or the equivalent Zimbabwe dollars at the
prevailing exchange rate or the prescribed amount or where that total value exceeds or is likely to exceed that
amount solely as a consequence of—
[Paragraph amended by Act 7 of 2021, Act 8 of 2022 and by s 57 of Act 13 of 2023]
(i) any cessation of, or any substantial or permanent reduction in the size or scale of, any trade carried
on by the registered operator; or
(ii) the replacement of any plant or other capital asset used in any trade carried on by the registered
operator; or
(iii) abnormal circumstances of a temporary nature.
(3) Every registered operator, not being a registered operator who falls within Category C or D as contemplated
in subsection (5) or (6), shall fall within Category A or Category B.
(4) The Commissioner⎯
(a) shall determine whether such registered operator falls within Category A or Category B and notify the
registered operator accordingly:
Provided that the determinations made by the Commissioner, in terms of this subsection, shall be
made so as to ensure that approximately equal numbers of registered operators fall within Category A and
Category B;
(b) may from time to time direct that any registered operator falling within Category A shall, with effect from
the commencement of a future period, fall within Category B, or vice versa.
(5) A registered operator shall fall within Category C if—
(a) the total value of the taxable supplies of the registered operator, including the taxable supplies of any
branches, divisions or separate trades of the registered operator registered as separate registered operators under
subsection (2) of section fifty-one—
(i) has in the period of twelve months ending on the last day of any month of the calendar year ex-
ceeded two hundred and forty thousand United States dollars or the equivalent Zimbabwe dollars at the prevailing
exchange rate or the prescribed amount; or
[Subparagraph amended by Act 7 of 2021, Act 8 of 2022 and s 57 of Act 13 of 2023]
(ii) is likely to exceed that amount in the period of twelve months beginning on the first day of any
such month; or
(b) the registered operator has applied in writing for the tax periods in his case to be on a monthly basis; or
(c) the registered operator has repeatedly made default in performing any of his obligations in terms of this
Act;
and the Commissioner has directed that, with effect from the 1st January, 2004, or such later date as may be appro-
priate, the registered operator shall fall within Category C:
Provided that a registered operator falling within Category C shall cease to fall within that Category with effect
from the commencement of a future period notified by the Commissioner, if the registered operator has applied in
writing to be placed within Category A, B or D and the Commissioner is satisfied that by reason of a change in the
registered operator’s circumstances he satisfies the requirements of this section for placement within Category A,
B or D.
(6) A registered operator shall fall within Category D if—
(a) the registered operator’s trade consists solely of agricultural, pastoral or other farming activities or the
registered operator is a branch, division or separate trade which is deemed by subsection (5) of section twenty-
three to be a separate person for the purposes of that section and is as such registered under that section, or the
registered operator is a branch, division or separate trade registered as a separate registered operator under
subsection (2) of section fifty-one; and
(b) the activities of any such branch, division or separate trade consist solely of agricultural, pastoral or other
farming activities and activities of that kind are not carried on in any other branch, division or separate trade of
 the registered operator or the association not for gain, as the case may be, by whom a written application referred
to in paragraph (e) is made; and
(c) the total value of the taxable supplies of the registered operator from agricultural, pastoral or other farming
activities—
(i) has in the period of twelve months ending on the last day of any month of the calendar year not
exceeded one hundred and twenty thousand United States dollars or the equivalent Zimbabwe dollars at the prevail-
ing exchange rate or the prescribed amount; and
[Subparagraph amended by Act 7 of 2021, Act 8 of 2022 and s 57 of Act 13 of 2023]
(ii) is not likely to exceed that amount in the period of twelve months commencing at the end of the
period referred to in subparagraph (i);
(d) the registered operator does not fall within Category C; and
(e) the registered operator whose trade consists solely of agricultural, pastoral or other farming activities or the
registered operator referred to in subsection (2) of section fifty-one or the association not for gain referred to in
subsection (5) of section twenty-three, as the case may be, has made a written application to the Commissioner,
in such form as the Commissioner may prescribe, for such first-mentioned registered operator or the branch,
division or separate trade in question, as the case may be, to be placed within Category D;
and the Commissioner has directed that, with effect from the 1st January, 2004, or such later date as may be appro-
priate, the registered operator shall fall within Category D:
Provided that a registered operator falling within Category D shall cease to fall within that Category with effect
from the commencement of a future period notified by the Commissioner, if written application is made by the
person who made the application referred to in paragraph (e) for the registered operator to be placed within Category
A, B or C or the Commissioner is satisfied that by reason of a change in circumstances that registered operator
should be placed within Category A, B or C.
(7) The tax periods applicable under this Act to any registered operator shall be the tax periods applicable to
the category within which the registered operator falls as contemplated in this section:
Provided that—
(a) the first such period shall commence on the 1st January, 2004, or, where any person becomes a registered
operator on a later date, such later date;
(b) any tax period ending on the last day of a month, as applicable in respect of the relevant Category, may,
instead of ending on such last day, end within ten days before or after such last day;
(c) the first day of any tax period of the registered operator subsequent to the registered operator’s first tax
period shall be the first day following the last day of the registered operator’s preceding tax period.
28 Returns and payments of tax
(1) Every registered operator shall, within the period ending on the twenty-fifthday of the first month com-
mencing after the end of a tax period relating to such registered operator or, where such tax period ends on or after
the first day and before the last day of a month, within the period ending on such last day—
(a) furnish the Commissioner with a return in the prescribed form reflecting such information as may
be required for the purpose of the calculation of tax in terms of section 15; and
(b) calculate the amounts of such tax in accordance with the said section and pay the tax payable to
the Commissioner or calculate the amount of any refund due to the registered operator.
[Subsection substituted by Act 5 of 2009and amended by Act 10 of 2009, by Act 3 of 2010, by Act 5 of 2010 and by Act 9 of 2011]
(1a) …
[Subsection repealed by Act 5 of 2009]
(2) Every registered operator who is registered in terms of Part IV shall within the period allowed by subsection
(1) of this section furnish the return referred to in that subsection in respect of each tax period relating to such
registered operator, whether or not tax is payable or a refund is due in respect of such period.
(3) The Commissioner may, having regard to the circumstances of any case but subject to section thirty-eight,
extend the period within which such return is to be furnished or such tax is to be paid.
29 Special returns
Where goods are deemed by subsection (1) of section seven to be supplied in the course of a trade the person
selling the goods, hereinafter referred to as “the seller”, whether or not the seller is a registered operator, shall,
within the period of thirty days after the date on which the sale was made—
(a) furnish the Commissioner with a return in the prescribed form reflecting—
(i) the name and address of the seller and, if registered as a registered operator, his registration num-
ber; and
(ii) the name and address of the person whose goods are sold, hereinafter referred to as “the owner”,
and, if the owner is registered under this Act, the registration number of the owner; and
(iii) the date of the sale; and
(iv) the description and quantity of the goods sold; and
 (v) the selling price of the goods and the amount of tax charged in respect of the supply of goods under
the sale, being the tax leviable in respect of such supply in terms of paragraph (a) of subsection (1) of section six;
and
(vi) such other particulars as may be required;
and
(b) pay to the Commissioner the amount of tax so charged; and
(c) send or deliver to the owner a copy of the return referred to in paragraph (a),
and the seller and the owner shall exclude from any return which the seller or owner is required to furnish under
section twenty-eight the tax charged on the supply of goods under the sale in respect of which the return is furnished
under this section.
30 Other returns
In addition to any return required under any other provision of this Act, the Commissioner may require any
person, whether or not that person is a registered operator, to furnish on his own behalf or as an agent or trustee, to
the Commissioner such further or other return, in the prescribed form as and when required by the Commissioner
for the purposes of this Act.
31 Assessments
(1) For the purposes of this section, Part III, Part VII and sections sixty-three, sixty-five, sixty-six and sixty-
seven—
(a) the person referred to in paragraph (d) of subsection (3) shall be deemed to be a registered operator; and
(b) any tax represented to be charged on any supply referred to in paragraph (d) of subsection (3) or paragraph
(e) of subsection (3) shall be deemed to be tax payable by the registered operator concerned and the amount
thereof as assessed under this section shall be paid within the period allowed by the Commissioner.
(2) For the purposes of subsection (3), the person liable for the payment of any amount of tax assessable by
the Commissioner shall be—
(a) the person liable for the payment of such tax in terms of section six; or
(b) where section twenty-nine is applicable—
(i) the seller referred to in that section, unless subparagraph (ii) is applicable; or
(ii) the owner referred to in that section, if the said seller holds a written statement contemplated in
paragraph (b) of subsection (1) of section seven furnished by the said owner and that written statement is incorrect;
or
(c) where paragraph (d) of subsection (3) is applicable, the person referred to in that provision; or
(d) where paragraph (e) of subsection (3) is applicable, the registered operator referred to in that provision.
(3) Where—
(a) any person fails to furnish any return as required by sections twenty-eight, twenty-nine or thirty or fails to
furnish any declaration as required by section thirteen; or
(b) the Commissioner is not satisfied with any return or declaration which any person is required to furnish
under a section referred to in paragraph (a); or
(c) the Commissioner has reason to believe that any person has become liable for the payment of any amount
of tax but has not paid such amount; or
(d) any person, not being a registered operator, supplies goods or services and represents that tax is charged on
that supply; or
(e) any registered operator supplies goods or services and such supply is not a taxable supply or such supply
is a taxable supply in respect of which tax is chargeable at a rate of zero per centum, and in either case that
registered operator represents that tax is charged on such supply at a rate in excess of zero per centum;
the Commissioner may make an assessment of the amount of tax payable by the person liable for the payment of
such amount of tax, and the amount of tax so assessed shall be paid by the person concerned to the Commissioner.
(4) In making such assessment the Commissioner may estimate the amount upon which the tax is payable
(5) The Commissioner shall give the person concerned a written notice of such assessment, stating the amount
upon which tax is payable, the amount of tax payable, the amount of any additional tax payable in terms of section
sixty-six and the tax period, if any, in relation to which the assessment is made, and—
(a) where the assessment is made on a seller referred to in subparagraph (i) of paragraph (b) of subsection (2),
send a copy of that notice of assessment to the owner referred to in that subsection; or
(b) where the assessment is made on an owner referred to in subparagraph (ii) of paragraph (b) of subsection
(2), send a copy of that notice of assessment to the seller referred to in that subsection.
(6) The Commissioner shall, in the notice of assessment referred to in subsection (5), give notice to the person
upon whom it has been made that any objection to such assessment shall be lodged or be sent so as to reach the
Commissioner within thirty days after the date of such notice.
 PART VI
OBJECTIONS AND APPEALS

32 Objections to certain decisions or assessments

(1) Any person who is dissatisfied with—
(a) any decision given in writing by the Commissioner—
(i) in terms of subsection (7) of section twenty-three notifying that person of the Commissioner’s
refusal to register that person in terms of this Act; or
(ii) in terms of subsections (6) or (7) of section twenty-four notifying that person of the Commis-
sioner’s decision to cancel any registration of that person in terms of this Act or of the Commissioner’s refusal to
cancel such registration; or
(iii) in terms of subsection (8) of section forty-four of the Commissioner’s refusal to make a refund; or
(b) any assessment made upon him under sections thirty-one, sixty-six or sixty-seven; or
(c) any direction or supplementary direction made by the Commissioner and served on that person in terms of
subsections (3) or (4) of section fifty-two;
(d) any decision of the Commissioner implementing or interpreting regulations made under section 78 in con-
nection with fiscalised electronic registers, and any assessments of amounts of tax due arising from the opera-
tion of such registers;
[Paragraph inserted by Act 1 of 2014]
may lodge an objection thereto with the Commissioner.
(2) Every objection shall be in writing and shall specify in detail the grounds upon which it is made.
(3) No objection shall be considered by the Commissioner which is not delivered at his office or posted to him
in sufficient time to reach him within thirty days after the date on which notice of any decision or assessment against
which such objection is lodged was given by the Commissioner, unless the Commissioner is satisfied that reasonable
grounds exist for delay in lodging the objection:
Provided that any decision of the Commissioner in the exercise of his discretion under this subsection shall be
subject to objection and appeal.
(4) After having considered the objection, the Commissioner may—
(a) alter any decision pursuant thereto; or
(b) alter or reduce any assessment pursuant thereto; or
(c) disallow the objection;
and shall send to the person upon whom the assessment has been made or to whom the decision has been conveyed
or, as the case may be, to whom the reduction has been allowed, notice of the reduction, increase, alteration or
disallowance:
Provided that if the Commissioner has not notified the person who lodged the objection of his decision within
three months after receiving the notice of objection or within such longer period as the Commissioner and the person
may agree, the objection shall be deemed to have been disallowed.
[Section amended by Act 12 of 2006]
(5) Where no objection is lodged against any decision or assessment by the Commissioner as contemplated in
subsection (1), or where any objection has been disallowed or withdrawn or any decision has been altered or any
assessment has been altered or reduced, as the case may be, such decision or altered decision or such assessment or
altered or reduced assessment, as the case may be, shall, subject to the right of appeal hereinafter provided, be final
and conclusive.
33 Appeals to Fiscal Appeal Court
(1) An appeal against any decision or assessment of the Commissioner, as notified in terms of subsection (4)
of section thirty-two, shall lie to the Fiscal Appeal Court in terms of the Fiscal Appeal Court Act [Chapter 23:05].
(2) Every appeal shall be by way of a notice in writing and shall be lodged with the Commissioner within thirty
days after the date of the notice mentioned in subsection (4) of section thirty-two or, if the Commissioner has under
subsection (4) of section seventy-five withdrawn the last-mentioned notice and sent it anew, the date of the notice
so sent anew:
Provided that⎯
(a) the Commissioner may, on good cause shown, condone any delay in the lodging of any such notice of
appeal within the said period;
(b) any decision of the Commissioner in the exercise of his discretion under this subsection shall be subject to
objection and appeal.
(3) At the hearing by the Fiscal Appeal Court of any appeal to that court—
(a) the appellant shall be limited to the grounds of objection stated in the notice of objection referred to in
subsection (2) of section thirty-two unless the Commissioner agrees to the amendment of such grounds or the
appellant, on good cause shown prior to or at such hearing, is given leave by the court to amend such grounds
 of objection within a reasonable period and on such terms as to any postponement of such hearing and costs
which may result from such postponement as the court may order;
(b) the Fiscal Appeal Court may inquire into and consider the matter before it and may confirm, cancel or vary
any decision of the Commissioner under appeal or make any other decision which the Commissioner was em-
powered to make at the time the Commissioner made the decision under appeal or, in the case of any assess-
ment, order that assessment to be altered, reduced or confirmed or, if it thinks fit, refer such matter back to the
Commissioner for further investigation and reconsideration in the light of principles laid down by the court.
34 Appeals against decisions of Fiscal Appeal Court
The appellant in proceedings before the Fiscal Appeal Court referred to in section thirty-three or the Commis-
sioner may appeal to the Supreme Court in the manner provided in the Fiscal Appeal Court Act [Chapter 23:05]
against any decision of the Fiscal Appeal Court.
35 Members of Fiscal Appeal Court not disqualified from adjudicating
A member of the Fiscal Appeal Court referred to in section thirty-three shall not solely on account of any
liability imposed upon him under this Act be deemed to be interested in any matter upon which he may be called
upon to adjudicate there under.
36 Pagement of tax pending decision on objection and appeal
The obligation to pay and the right to receive and recover any tax, additional tax, penalty or interest chargeable
under this Act shall not, unless the Commissioner so directs, be suspended by any objection or appeal pending the
decision of a court of law on such objection or appeal, but if any assessment is altered on objection or appeal in
conformity with any such decision or the Commissioner decides to concede the objection or appeal to the Fiscal
Appeal Court or such court of law, a due adjustment shall be made, amounts paid in excess being refunded with
interest at the prescribed rate (but subject to section 46) and calculated from the date proved to the satisfaction of
the Commissioner to be the date on which such excess was received, and amounts underpaid being recoverable with
penalty and interest calculated as provided in section 39(1).
[Section 36 substituted by Act 8 of 2022]
37 Burden of proof
The burden of proof that any supply or importation is exempt from or not liable to any tax chargeable under
this Act or is subject to tax at the rate of zero per centum or that any value upon which tax is chargeable under this
Act or any amount of tax chargeable under this Act is subject to any deduction or set-off or that any amount should
be deducted as input tax, shall be upon the person claiming such exemption, non-liability, rate of zero per centum,
deduction or set-off, and upon the hearing of any appeal from any decision of the Commissioner, the decision shall
not be reversed or altered unless it is shown by the appellant that the decision is wrong.
PART VII
PAYMENT, RECOVERY AND REFUND OF TAX

38 Manner in which tax shall be paid

(1) Subject to this section and sections 6(3) and 12(4) and (5), the tax payable under this Act shall be paid in
full within the time allowed by section thirteen or section twenty-eight or section twenty-nine, whichever is appli-
cable.
[Subsection amended by Act 6 of 2006]
(2) Where the Commissioner is satisfied that due to circumstances beyond the control of the person liable for
the payment of the tax the amount of tax due cannot be accurately calculated within the time allowed by section
thirteen or section twenty-eight or section twenty-nine, whichever is applicable, the Commissioner may in his dis-
cretion and subject to such conditions as he may impose, agree to accept a payment of a deposit by such person of
an amount equal to the estimated liability of such person for such tax.
(3) The payment made in terms of subsection (2) shall be deemed to be a provisional payment in respect of the
liability of the said person for such tax, as finally determined, and when such liability is so determined any amount
paid in excess shall be refundable to such person and any amount short-paid shall be recoverable from him.
(4) Notwithstanding section 41 and 44C of the Reserve Bank of Zimbabwe Act [Chapter 22:15] and the Ex-
change Control Act [Chapter 22:05] where a registered operator—
[Subsection (4) amended by Act 8. of 2022]
(a) receives payment of any amount of tax in foreign currency in respect of the supply of goods or services,
that operator shall pay that amount to the Commissioner in foreign currency;
(b) imports or is deemed in terms of section 12(1) to have imported goods into Zimbabwe, that operator shall
pay any tax thereon to the Commissioner in foreign currency.
In this subsection “foreign currency” means the euro, British pound, United States dollar, South African rand,
Botswana pula or any other currency denominated under the Exchange Control (General) Order, 1996, published in
Statutory Instrument 110 of 1996, or any other enactment that may be substituted for the same.
[Subsection substituted by Act 3 of 2009]
 (4a) For the purposes of subsection (4)—
(a) if the price for the taxable supplies in question is paid for in a foreign currency, then the registered operator
shall pay the amount of the tax to the Commissioner in that foreign currency;
(b) if the price for the taxable supplies in question is paid for in legal tender other than foreign currency, then
the registered operator may pay the amount of the tax to the Commissioner in that legal tender or in a foreign
currency.
[Subsection inserted by Act 1 of 2019]
(5) Where a registered operator does not receive payment of any amount of tax in respect of the supply of
goods or services directly in the form of currency, whether Zimbabwean or foreign, but in the form of a coupon or
any instrument or token that, in the opinion of the Commissioner, is exchangeable, whether directly or indirectly,
for foreign currency, that operator shall pay an amount of tax to the Commissioner in foreign currency calculated
on a valuation of that coupon, document or token which, in the opinion of the Commissioner, represents a fair
valuation of that coupon, document or token in foreign currency.
[Sections inserted by Act 3 of 2009]
(6) For the purposes of subsection (5) the Commissioner may, in the case of any coupon, instrument or token
denominated in units of weight, volume or other measure of a specified commodity, specify from time to time by
notice in the Gazette that a unit by weight, volume or other measure of that commodity shall be deemed to be worth
a specified amount of a foreign currency.
[Sections inserted by Act 3 of 2009]
(7) If the Commissioner has reasonable grounds to believe that a registered operator receives payment of any
amount of tax in foreign currency in respect of the supply of goods or services, and that the registered operator—
(a) has prepared or maintained or authorised the preparation or maintenance of any false books of account or
other records, or falsified or authorised the falsification of any books of account or records; or
(b) has furnished a false return or information;
with the effect that payment to the Commissioner of any amount of tax in foreign currency is avoided or postponed,
the Commissioner may deem that all tax received by that operator in respect of the supply of goods or services is
received in foreign currency unless, in respect of any particular transaction, such operator proves to the satisfaction
of the Commissioner that the tax received in respect of that transaction was received in Zimbabwean currency.
[Sections inserted by Act 3 of 2009]
(8) The Commissioner may require that any registered operator who tenders payment of tax in a foreign cur-
rency other than the United States dollar, to tender instead the equivalent amount of that tax in United States dollars,
being an amount obtained by applying the international cross rate of exchange of the first-mentioned currency for
the United States dollar prevailing on the day the tax concerned becomes due.
[Sections inserted by Act 3 of 2009]
(9) In subsections (4) and (4a)—
“bondnote”meansaunitoflegaltenderwhoseparvalue inrelationtotheUnitedStatesdollarisbackedbya guaran-
teeextendedtotheReserveBankbyoneormore international financial institutions, and “bond coins” shall be con-
strued accordingly;
“legal tender other than foreign currency” means bond notes and coins, or money paid by means of an elec-
tronic transferof funds through an account (other than a nostro foreign currency account) with a banking insti-
tution;
“nostro foreign currency account” means any account designated in terms of Exchange Control Directive
RT/120 of 2018, held with a financial institution in Zimbabwe, in whichmoney in the form of foreign currency
is deposited from offshore or domestic sources.
[Subsection inserted by Act 1 of 2019 and numbered (9) in error. Law Reviser]
(9) For the avoidance of doubt it is declared that all the provisions of this Act shall apply, with such changes
as may be necessary, to the payment in foreign currency of tax in terms of subsection (4) in the same way as they
apply to the payment of tax in Zimbabwean currency.
In particular, section 44 (“Refunds”) shall apply so that any part of tax paid in foreign currency that is required
to be refunded shall be refunded in foreign currency.
[Sections inserted by Act 3 of 2009]
38A Civilpenalty for breach of section 38(4a)
(1) As soon as it comes to the notice of the Commissioner that a registered operator has failed to comply with
section 38(4a), the Commissioner shall, having given the operator a prior right of reply at least seven (7) days before
the service of the order, serve upon the operator notice of an assessment in terms of section 31 of double the amount
of tax payable in the foreign currency concerned, which shall be payable in the foreign currency concerned(herein-
after called “the primary civil penalty:
Provided that if the amount assessed is in a foreign currency other than the United States dollar, the registered
operator may tender instead the equivalent amount of that tax in United States dollars, being an amount obtained by
applying the international cross rate of exchange of the first-mentioned currency for the United States dollar pre-
vailing on the day the tax concerned becomes due.
(2) A registered operator upon whom the Commissioner has served a notice of assessment in terms of subsec-
tion (1) and who fails without just cause to comply with the notice within the first seven (7) days of the period of
one hundred and eighty-one (181) days shall, if the registered operator continues to be in default, be guilty of an
offence and liable on conviction to a fine not exceeding level 10 or to imprisonment for a period not exceeding six
months or to both such fine and such imprisonment.
(3) The primary and secondary civil penalty shall be paid into and form part of the funds of the Consolidated
Revenue Fund.
[Section inserted by Act 1of 2019]
39 Penalty and interest for failure to pay tax when due
(1) For the purposes of this section “month” means any of the twelve portions into which any calendar year is
divided.
(2) Where⎯
(a) a person who is liable for the payment of tax and is required to make such payment in the manner prescribed
in subsection (1) of section twenty-eight, fails to pay any amount of such tax within the period for the payment
of such tax specified in the said provision, he shall, in addition to such amount of tax, pay—
(i) penalty of an amount equal to the said amount of tax; and
(ii) where payment of the said amount of tax is made on or after the first day of the month following
the month during which the period allowed for payment of the tax ended, interest on the said amount of tax, calcu-
lated at the prescribed rate (but subject to section forty-six) for each month or part of a month in the period reckoned
from the said first day;
(b) an amount of tax has in relation to any tax period of any registered operator been refunded to the registered
operator in terms of subsection (1) of section forty-four, as read with subsection (6) of section fifteen, or has in
relation to that period been set off against unpaid tax in terms of subsection (6) of section forty-four, and such
amount was in whole or in part not properly refundable to the registered operator under subsection (6) of section
fifteen, so much of such amount as was not properly so refundable shall for the purposes of subparagraph (i) of
paragraph (a) be deemed to be an amount of tax required to be paid by the registered operator within the said
period and for the purposes of subparagraph (ii) of paragraph (a), an amount of tax required to be paid by the
registered operator during the period in which the refund was made.
(3) If any person who is liable for the payment of tax in accordance with section twenty-nine fails to pay any
amount of such tax within the period allowed for the payment of such tax in terms of that section, he shall, in
addition to such amount of tax, pay—
(a) a penalty of a prescribed amount not exceeding an amount equal to the said amount of tax; and
(b) where payment of the said amount of tax is made on or after the first day of the month following the month
during which the period allowed for payment of the tax ended, interest on the said amount of tax, calculated at
the prescribed rate (but subject to section forty-six) for each month or part of a month in the period reckoned
from the said first day.
(4) If any person who is liable for the payment of additional tax in accordance with section sixty-six fails to
pay any amount of such tax on or before the last business day of the month in which the last day of the period
allowed for the payment of such tax in terms of that section falls, he shall, in addition to such amount of tax, pay
interest on the said amount of tax, calculated at the prescribed rate but subject to section forty-six) for each month
or part of a month during which the said tax is not paid.
(5) Where the Commissioner is satisfied that the failure on the part of the person concerned or any other person
under the control or acting on behalf of that person to make payment of the tax within the period for payment
contemplated in paragraph (a) of subsection (2), or subsection (3) or (4)⎯
(a) did not, having regard to the output tax and input tax relating to the supply in respect of which interest is
payable, result in any financial loss, including any loss of interest payable, to the State; or
(b) such person did not benefit financially, taking interest payable into account, by not making such payment
within the said period or on the said date;
was not due to an intent to avoid or postpone liability for the payment of the tax, he may remit in whole or in part
any penalty or interest payable in terms of this section.
(6) For the avoidance of doubt, a person by whom no tax is found to be payable but who, being under a duty
to do so, fails to comply with sectionthirteen,twenty-three, twenty-five, twenty-eight, twenty-nine or thirty, shall be
liable for contravening subsection (2) of section sixty-two, and accordingly may agree with the Commissioner to
compromise the offence as provided in section sixty-five.
[Subsection amended by Act 10 of 2009]
40 …
[Section repealed by of Act 1 of 2019]
41 Liability for tax in respect of certain past supplies or importations
Notwithstanding anything to the contrary in this Act—
(a) no amount of tax otherwise properly chargeable and payable by any person or deductible by him under this
Act, shall be recoverable by the Commissioner in respect of any past supply of goods or services or any past
importation of goods if, in terms of a general written ruling by the Commissioner given by him previously,
which had not been withdrawn by him at the time at which the said person became contractually obliged to
supply or receive such goods or services, as the case may be, no tax was payable in respect of such supply or
importation;
(b) no further amount of tax shall be recoverable by the Commissioner in respect of or in relation to any past
supply of goods or services or any past importation of goods if, in terms of a general written ruling by the
Commissioner which had not been withdrawn by him at the time of such supply or importation, the tax payable
or deductible in respect of such supply or importation had been calculated and paid or had been deducted in
accordance with such ruling, as the case may be;
(c) where any written decision has been given by the Commissioner—
(i) to the effect that any person is required or not required to be registered as a registered operator in
terms of this Act; or
(ii) as to the taxable or non-taxable nature of any supply of goods or services by any person or of the
importation of goods by any person, including any decision as to the applicability of any exemption or rate of zero
per centum, or as to the deductibility or non-deductibility in terms of subsection (3) of section fifteen of tax in respect
of the supply to any person of goods or services or the importation by any person of goods;
and such decision is subsequently withdrawn, such withdrawal shall, as respects any contractual obligation
incurred by the person concerned before such withdrawal to supply or receive the goods or services concerned,
not affect the liability or non-liability of that person for the payment of tax in accordance with such decision or
his entitlement or otherwise to a deduction of tax, as determined in accordance with such decision, as the case
may be, provided such decision was accepted by the said person and all the material facts were known to the
Commissioner when the decision was given;
(d) where—
(i) any amount of tax chargeable under this Act in respect of a supply of goods or services has not
been returned in any return required to be furnished under section twenty-eight or twenty-nine and in which the said
amount is required to be returned; or
(ii) excise duties are imposed in terms of the Customs Act; or
(iii) any amount of tax chargeable under this Act in respect of a supply of imported services has not
been accounted for and paid as required by subsection (1) of section thirteen; or
(iv) any amount of tax has been incorrectly deducted in terms of paragraph (3) of section fifteen in any
return required to be furnished under section twenty-eight;
and in consequence thereof an amount of tax which should have been paid to the Commissioner, or the
successor postal company or other postal licensee in terms of this Act has not been paid, that amount shall not
be recoverable by the Commissioner after the expiration of a period of six years reckoned from the date on
which that amount became payable in terms of this Act, if it is shown—
A. that the failure to pay the amount which should have been paid was not due to an intent of the
person concerned or any other person under the control or acting on behalf of that person not to make payment of
tax; and
B. that the person responsible for the payment of the amount which should have been paid acted in
good faith and on an assumption that an exemption or a rate of zero per centum was in fact applicable in respect of
the supply referred to in subparagraph (i) or subparagraph (iii) or that any such supply was not subject to tax under
this Act, or that the amount of tax referred to in subparagraph (iii) was not payable, or that a deduction in respect of
the amount referred to in subparagraph (iv) was in fact applicable, as the case may be; and
C. that the said assumption was based on reasonable grounds and not due to negligence on the part of
the said person:
Provided that this paragraph shall not apply if the Commissioner has not later than the end of the
said period issued an assessment in respect of the unpaid tax.
42 Evidence as to assessments
The production of any document issued by the Commissioner purporting to be a copy of or an extract from any
notice of assessment shall be conclusive evidence of the making of an assessment, and shall, except in the case of
proceedings on appeal against the assessment, be conclusive evidence that the amount and all the particulars of such
assessment appearing in such document are correct.
43 Security for tax
(1) The Commissioner may, in the case of any registered operator who has been convicted of any offence under
this Act or who has repeatedly failed to pay amounts of tax due to him or to carry out other obligations imposed
upon him by this Act, by written notice to such registered operator require him, within such period as the Commis-
sioner may allow, to furnish to or deposit with the Commissioner security for the payment of any tax, additional
tax, penalty or interest which has or may become payable by the registered operator in terms of this Act.
(2) Such security shall be of such nature, for such amount and in such form as the Commissioner may direct.
(3) Where the Commissioner has directed that such security shall be in the form of a cash deposit and the
registered operator fails to make such deposit within the period allowed by the Commissioner, the amount of such
deposit shall be recoverable from the registered operator in terms of section forty as though such amount were an
amount of tax due by the registered operator.
(4) Where such security is in the form of a cash deposit, the amount deposited may be set off in whole or in
part by the Commissioner against any liability of the registered operator for any tax, additional tax, penalty or
interest in terms of this Act, or such amount (or the balance thereof remaining after deducting any portion thereof
which has been so set off) may be repaid by the Commissioner to the registered operator when the Commissioner
is satisfied that the security is no longer required.
44 Refunds
(1) Any amount of tax which is refundable to any registered operator in terms of subsection (4) of section
fifteen in respect of any tax period shall, to the extent that such amount has not been set off against unpaid tax in
terms of subsection (6) of this section, be refunded to the registered operator by the Commissioner:
Provided that—
(a) the Commissioner shall not make a refund under this subsection unless the claim for the refund is made
within six years after the end of the said tax period; or
(b) where the amount that would be so refunded to the registered operator is determined to be sixty United
States dollars or the equivalent Zimbabwe dollars at the prevailing exchange rate or the prescribed amount or
less, the amount so determined shall not be refunded in respect of the said tax period but shall be carried forward
to the next succeeding tax period of the registered operator and be accounted for as provided in subsection (6)
of section fifteen.
[Paragraph (b) amended by Act 7 of 2021, Act 8 of 2022 and s 57 of Act 13 of 2023]
(2) Subject to subsection (3), where—
(a) any amount of tax, additional tax, penalty or interest paid by any person in terms of this Act to the Com-
missioner was in excess of the amount of tax, additional tax, penalty or interest, as the case may be, that should
properly have been charged under this Act; or
(b) any amount refunded to a registered operator in terms of subsection (1) was less than the amount properly
refundable under that subsection; the Commissioner shall, on application by the person concerned, refund the
amount of tax, additional tax, penalty or interest paid in excess or the amount by which the amount refunded
was less than the amount properly refundable, as the case may be.
(3) The Commissioner shall not make a refund under subsection (2), unless—
(a) the claim for the refund of such excess amount of tax, additional tax, penalty or interest is received by the
Commissioner within six years after the date upon which payment of the amount claimed to be refundable was
made:
Provided that if the Commissioner is satisfied that such payment was made in accordance with the practice
generally prevailing at the said date, no refund shall be made unless the claim for any refund is received by the
Commissioner within six months after that date; or
(b) the amount to be refunded is sixty United States dollars the equivalent Zimbabwe dollars at the prevailing
exchange rate or the prescribed amount or more; or
[Paragraph (b) amended by Act 7 of 2021, Act 8 of 2022 and s 57 of Act 13 of 2023]
(c) the Commissioner is satisfied that any amount of output tax claimed to be refundable to a registered
operator will, if such amount has been borne by any other person, in turn be refunded by the registered operator to
such other person.
(4) Where the amount that would be refunded under subsection (2) is determined to be thirty thousand ZW
dollars (sixty US dollars) or the prescribed amount or less, the amount so determined shall not be refunded but
shall be credited to the registered operator’s account and be accounted for as provided in subsection (6) of section
fifteen.
[Subsection (4) amended by Act 7 of 2021 and amended by Act 8 of 2022]
(5) Notwithstanding paragraph (b) of the proviso to subsection (1) and subsection (4) any amount determined
to be refundable to a registered operator in respect of his final tax period on the cancellation of his registration as a
registered operator shall be refundable to him in full.
(6) Where any registered operator—
(a) has failed to pay to the Commissioner within the period prescribed for payment any amount of tax,
additional tax, penalty or interest payable by the registered operator under this Act; or
 (b) owes any amount of tax, interest or penalty levied under any Act of Parliament administered on behalf of
the Minister responsible for finance by the Commissioner and the registered operator is in default in respect of
the payment of such amount;
the Commissioner may set off against the amounts referred to in paragraphs (a) and (b) any amount or part thereof
which has become refundable to the registered operator under this section or any interest which has become payable
to the registered operator in terms of section forty-five.
(7) Where the registered operator has failed to furnish a return for any tax period as required by this Act, the
Commissioner may withhold payment of any amount refundable to the registered operator under subsection (1)
until the registered operator has furnished such return as so required.
(8) If the Commissioner refuses to make or authorise a refund in terms of this section he shall, at the request
of the registered operator concerned, give the registered operator written notice of such refusal.
(9) The Commissioner may make or authorise a refund of any amount of tax which has become refundable to
any person under an export incentive scheme referred to in paragraph (c) of the definition of ‘exported’ in section
two.
45 Interest on delayed refunds
The Minister may direct that interest at the rate prescribed by regulations made in terms of section seventy-
eight may, subject to section forty-six, be paid on any amount refundable in terms subsection (1) of section forty-
four if the Commissioner fails to refund such amount within the period so prescribed.
45A Refunds of tax to exempted persons
(1) The Commissioner may, on compliance by the person concerned with such terms and conditions as may
be prescribed, refund to that person any tax paid by him or her on—
(a) such goods or services as may be prescribed which are purchased by or supplied to a person who—
(i) is not a citizen of Zimbabwe; and
(ii) is not permanently resident in Zimbabwe; and
(iii) is a person specified in the list published in terms of section 10 of the Privileges and Immunities
Act [Chapter 3:03], or is a representative or official of an international or regional organization or agency specified
in a notice published in terms of section 7 of that Act;
or
(b) such goods or services as may be prescribed which are purchased by or supplied to a prescribed person.
(2) Subject to this section, if the Commissioner is satisfied that any person has paid any tax which he or she
was not liable to pay in terms of this Act, he or she shall authorize a refund of such tax to be made to such person.
(3) Where a refund is made in terms of subsection (2) the Commissioner may deduct from the amount to be
refunded, as an administrative charge, a prescribed amount.
(4) No refund shall be granted in terms of this section unless an application therefor is received by the
Commissioner within a period of three years from the date when such tax was paid.
[Section inserted by section 25 of Act 2 of 2005]
46 Calculation of interest payable under this Act
Where—
(a) any interest is payable under sections thirty-six, thirty-nine or forty-five;
(b) the rate at which such interest is payable has with effect from any date been altered; and
(c) such interest is payable in respect of any period or any number of months or any part of a month which
commenced before the said date;
the interest to be determined in respect of that portion of such period which ended immediately before the said date
or in respect of any such months or part of a month which commenced before the said date shall be calculated as if
the said rate had not been so altered.
PART VIII
REPRESENTATIVE REGISTERED OPERATORS

47 Persons acting in a representative capacity

The person responsible for performing the duties imposed by this Act on—
(a) any company shall be the public officer thereof contemplated in section 53 of the Taxes Act or, in the case
of any company which is placed in liquidation, the liquidator thereof;
(b) any public authority shall be any person responsible for accounting for the receipt and payment of
moneys under any law or for the receipt and payment of moneys or funds on behalf of such public authority;
(c) a local authority shall be any person responsible for accounting for the receipt and payment of moneys or
funds on behalf of such local authority;
(d) any corporate or unincorporated body, other than a company, shall be any person who is the treasurer of
that body or whose functions are similar to those of a treasurer of that body;
 (e) a person under legal disability shall be his guardian, curator or administrator or the other person having the
management or control of his affairs;
(f) any person who is not a resident of Zimbabwe or any person, other than a company, who is for the time
being out of Zimbabwe, shall be any agent of such person controlling such person’s affairs in Zimbabwe or any
manager of any trade of such person in Zimbabwe;
(g) a deceased person or his estate shall be the executor or administrator of such estate;
(h) an insolvent person or his estate shall be the trustee or administrator of such estate;
(i) any trust fund shall be the person administering the fund in a fiduciary capacity:
Provided that nothing herein contained shall be construed as relieving any such company, public authority,
local authority, body or person or any member of a partnership referred to in subsection (3) of section fifty-three
from having to perform any duties imposed by this Act upon such company, public authority, local authority, body
or person which the first-mentioned person has failed to perform.
48 Power to appoint agent
(1) For the purpose of subsection (2)—
“person” includes—
(a) a bank, building society or savings bank; and
(b) a partnership; and
(c) any officer in the Public Service; and
(d) any prescribed person in relation to a prescribed service.
(2) The Commissioner may, if he thinks it necessary, declare any person to be the agent of any other person,
and the person so declared an agent shall be the agent of such other person for the purposes of this Act, and, not-
withstanding anything to the contrary contained in any other law, may be required to pay any amount of tax,
additional tax, penalty, or interest due from any moneys in any current account, deposit account, fixed deposit
account or savings account or any other moneys—
(a) including pensions, salary, wages or any other remuneration, which may be held by him for, or due by him
to, the person whose agent he has been declared to be; or
(b) that the person so declared an agent receives as an intermediary from the other person.
[Section inserted by section 26 of Act 2 of 2005]
49 Liability of representative registered operators
(1) For the purposes of this section “representative registered operator” means, in relation to—
(a) any company, public authority, local authority, body, trust fund or person referred to in section forty-seven,
the person who is, in terms of that section, responsible for performing the duties imposed under this Act on
such company, public authority, local authority, body, trust fund or person; and
(b) the other person referred to in section forty-eight, any person declared by the Commissioner under that
section to be the agent of that other person.
(2) Every representative registered operator shall as respects moneys controlled or transactions concluded or
anything done by him in his representative capacity be liable for the payment of any tax, additional tax, penalty or
interest chargeable under this Act in relation to such moneys or transactions as though such liability had been in-
curred by him personally, but such liability shall be deemed to have been incurred by him in his representative
capacity only.
(3) Any tax, additional tax, penalty or interest payable by any representative registered operator in his
representative capacity shall be recoverable from him, but to the extent only of any assets belonging to the
person whom he represents which may be in his possession or under his management, disposal or control:
Provided that any tax, additional tax, penalty or interest payable by a company shall not be recoverable from
the public officer of the company but shall be recoverable from the company.
(4) Every representative registered operator who, as such, pays any tax, additional tax, penalty or interest due
under this Act shall be entitled to recover the amount so paid from the person on whose behalf it is paid, or to
retain out of any moneys that may be in his possession or may come to him in his representative capacity, an
amount equal to the amount so paid.
(5) Every representative registered operator referred to in paragraph (g) of section forty-seven who, as such,
pays any tax, additional tax, penalty or interest due under this Act by any deceased person shall be entitled to
recover the amount so paid from the estate of such deceased person or to retain out of any moneys of the estate
of such deceased person that may be in his possession or that may come to him as executor or administrator of such
estate, an amount equal to the amounts so paid.
(6) Every representative registered operator shall be personally liable for the payment of any tax, additional
tax, penalty or interest payable by him in his representative capacity, if, while the amount thereof remains
unpaid—
 (a) he alienates, charges or disposes of any money received or accrued in respect of which the tax is chargeable;
or
(b) he disposes of or parts with any fund or money belonging to the person whom he represents which is in his
possession or comes to him after the tax, additional tax, penalty or interest has become payable, if such tax,
additional tax, penalty or interest could legally have been paid from or out of such fund or money.
(7) Every person who becomes a representative registered operator, other than a person representing a
company, public authority or local authority as contemplated in paragraphs (a), (b) or (c) of section forty-seven,
or a person appointed as an agent under section forty-eight shall within thirty days after becoming responsible for
performing duties under this Act on behalf of any other person notify the Commissioner in such form as the Com-
missioner may prescribe, of the fact that he has become a representative registered operator of that other person.
50 Remedies of Commissioner against agent or trustee
The Commissioner shall have the same remedies against all property of any kind vested in or under the control
or management of any agent or person acting in a fiduciary capacity as he would have against the property of any
person liable to pay any tax, additional tax, penalty or interest chargeable under this Act and in as full and ample a
manner.
50A Commissioner may appoint value added withholding tax agents
(1) If the Commissioner reasonably believes that any registered operator or significant number of registered
operators in any sector of the economy have not been regularly submitting returns of output tax charged and input
tax paid in terms of this Act, or not submitting truthful returns,the Commissioner may by notice in writing appoint
any registered operator who purchases goods and services from the first-mentioned registered operator or class of
registered operators (hereinafter referred to as “specified operators”) to be a value added tax withholding agent in
relation to that specified operator or class of specified operators for the period specified in the notice or until the
Commissioner revokes the notice, whichever is the earlier.
(2) Every value added withholding tax agent shall—
(a) withhold the portion of the full amount of output tax specified in the Charging Act from each amount to be
paid to a specified operator; and
(b) remit each amount so withheld to the Commissioner on or before the 15th of the following month or any
other date that Commissioner may fix in the specifying notice or prescribe.
(3) When submitting a return in terms of section28, every specified operator shall, for the purposes of
subsection (4), indicate the amount of any value added withholding tax withheld by the value added
withholding tax agent.
(4) The Commissioner shall in determining tax payable in terms of section 15, credit the account of the
specified operator with the value added withholding tax withheld in terms of subsection (2).
(5) For the avoidance of doubt, it is declared that the withholding of tax under subsection (2) shall not relieve
the supplier of taxable supplies of the obligation to account for tax in accordance with this Act.
(6) Any value added withholding tax agent who fails to withhold or pay to the Commissioner any amount of
value added withholding tax in terms of subsection (2) shall be personally liable for the payment, not later than the
date on which payment should have been made if value added withholding tax had been withheld in terms of
section (2), of the amount of value added withholding tax which he or she failed to withhold or pay to the
Commissioner and a further amount equal to such value added withholding tax.
(7) In addition, a value added withholding tax agent who fails to comply with subsection (2) shall be guilty of
an offence and liable on conviction to a fine not exceeding level seven or to imprisonment for a period not
exceeding twelve months or to both such fine and such imprisonment.
[Section inserted by Act 3 of 2017]

PART IX
SPECIAL PROVISIONS

51 …
[Section repealed by Act 10 of 2009]
52 Separate persons carrying on same trade under certain circumstances deemed to be single person
(1) For the purposes of this Act, where a directive is made under this section—
(a) the person carrying on the trade specified in the directive shall be registered in such name as the members
may jointly nominate upon compliance with subsection (2) of section twenty-three; and
(b) any supply of goods or services by or to one of the members in the course of the activities of such single
person shall be deemed to be a supply by or to such single person; and
(c) each of the members shall be jointly and severally liable for any tax due by such single person; and
(d) notwithstanding paragraph (c), any failure by such single person to comply with any requirement imposed
upon him by or under this Act shall be deemed to be a failure by each of the members severally; and
 (e) subject to paragraphs (a) to (d) of this subsection, the members shall be deemed to be a body of persons
carrying on the trade of such single person and any question as to the scope of the activities of that trade at any
time shall be determined accordingly.
(2) Notwithstanding section twenty-three, if the Commissioner makes a directive under this section, the
persons named in the directive shall be deemed to be a single person carrying on the activities of a trade de-
scribed in the directive and that person shall be liable to be registered in terms of section twenty-three with effect
from the date of the directive or, if the directive so provides, from such date as may be specified therein.
(3) The Commissioner shall not make a directive under this section naming any person unless he is satisfied
that—
(a) such person is making or has made taxable supplies; and
(b) the activities in the course of which he makes or made those taxable supplies form only part of certain
activities which should properly be regarded as those of the trade described in the directive, the other
activities of that trade being carried on at that time or previously by one or more other persons; and
(c) if all the taxable supplies of that trade were taken into account, a person carrying on that trade should at
that time be liable to be registered in terms of subsection (2); and
(d) the main reason or one of the main reasons for the person concerned carrying on the activities first
referred to in paragraph (b) in the way he does is the avoidance of a liability to be so registered, whether that
liability would be his, another person’s or that of two or more persons jointly.
(4) A directive made under this section shall be served on each of the persons named in it.
(5) Where, after a directive has been given under this section specifying a description of the trade, it appears
to the Commissioner that a person who was not named in that directive is making taxable supplies in the course or
furtherance of activities which should properly be regarded as part of the activities of that trade, the Commissioner
may make and serve on him a supplementary directive referring to the earlier directive and the description of the
trade specified in it and adding that person’s name to those of the persons named in the earlier directive with
effect from—
(a) the date on which he began to make those taxable supplies; or
(b) if it was later, the date with effect from which the single person referred to in the earlier directive became
liable to be registered in terms of this section.
(6) If, immediately before a directive, including a supplementary directive, is made under this section, any
person named in the directive is registered in respect of the taxable supplies made by him as contemplated in
subsection (3) or (5), he shall cease to be liable to be so registered with effect from—
(a) the date with effect from which the single person concerned became liable to be registered; or
(b) the date of the directive;
whichever date is the later.
(7) In relation to a trade specified in a directive, including a supplementary directive, under this section, the
persons named in such directive, who together are deemed to be the liable person, are in subsections (1) and (8)
referred to as the members.
(8) If the Commissioner is of the opinion that any person who is one of the members should no longer be
regarded as such for the purposes of paragraphs (c) and (d) of subsection (1) and the Commissioner gives notice to
that effect, that person shall no longer be liable in terms of that subsection for anything done after the date
specified in that notice and shall be deemed to have ceased to be a member of the body of persons referred to
in paragraph (e) of subsection (1).
53 Bodies of persons, corporate or unincorporated, other than companies
(1) Subject to section forty-seven, where anybody of persons, whether corporate or unincorporated, other than
a company, carries on or is to carry on any trade—
(a) such body shall be deemed to carry on such trade as a person separate from the members of such body; and
(b) registration of that body as a registered operator shall be effected separately from any registration of any of
its members in respect of any other trade; and
(c) liability for tax in respect of supplies by the body shall be determined and calculated in respect of the trade
carried on by it as a trade carried on independently of any trade carried on by any of its members, and any
refund relating to the body’s trade which is payable in terms of section forty-four shall be made to that body;
and
(d) the duties and obligations imposed by this Act on any registered operator or other person shall, as respects
the trade carried on by that body, be performed by it separately from the duties and obligations
imposed on any of its members.
(2) Where any such body is a partnership or other unincorporated body and is dissolved in consequence of the
retirement or withdrawal of one or more, but not all, of its members or the admission of a new member, and a new
partnership or unincorporated body comes into being consisting of the remaining members of the dissolved partner-
ship or body, as the case may be, or such remaining members and one or more new members, and the new
partnership or body continues to carry on the trade of the dissolved partnership or body as a going concern, the
dissolved partnership or body and the new partnership or body, as the case may be, shall, unless the Commissioner,
having regard to the circumstances of the case, otherwise directs, for the purposes of this Act be deemed to be one
and the same partnership or body, as the case may be.
(3) Subject to section forty-seven, every member of a partnership shall be liable jointly and severally with other
members of the partnership for performing the duties of the partnership in terms of this Act and paying the tax
imposed by this Act on the partnership in respect of supplies made by the partnership while such member was a
member of the partnership:
Provided that this subsection shall not apply to any such member of a partnership who in relation to that part-
nership is a partner who has not held himself out as an ordinary or general partner of the partnership concerned.
54 Pooling arrangements
(1) Any pool managed by any board or body for the sale of agricultural, pastoral or other farming products,
may, on written application by such board or body, for the purposes of this Act be deemed to be a trade or part of a
trade carried on by that board or body separately from the members of such board or body:
Provided that such board or body may⎯
(a) elect in writing that the pool be treated as a separate trade for the purposes of this Act and may apply for
such pool to be registered separately in terms of section fifty-one;
(b) notwithstanding subsections (1) and (2) of section fifty-six, if it makes an election in writing, be treated for
the purposes of this Act as a principal and not as an agent of its members.
(2) Notwithstanding section fifty-six, any rental pool scheme operated and managed by any person for the ben-
efit of some or all of the owners of time-sharing interests in a property time-sharing scheme shall be deemed for the
purposes of this Act to be a separate trade carried on by such person separately from the owners and shall be regis-
tered separately under section fifty-one:
Provided that such a rental pool scheme shall, notwithstanding subsections (1) and (2)of section fifty-six, be
treated for the purposes of this Act as a principal and not as an agent of the owners.
55 Death or insolvency of registered operator
(1) Where⎯
(a) after the death of any registered operator or the sequestration of his estate, any trade previously carried on
by the registered operator continues to be carried on by or on behalf of the executor or trustee of his estate or
anything is done in connection with the termination of the trade, the estate of the registered operator, as repre-
sented by the executor or trustee, as the case may be, shall for the purposes of this Act be deemed to be a
registered operator in respect of the trade;
(b) paragraph (a) is applicable, the deceased registered operator and his estate or the registered operator whose
estate is sequestrated and his estate, as the case may be, shall, as respects the trade in question, be deemed for
the purposes of this Act to be one and the same person.
(2) Where a mortgagee is in possession of any land or other property previously mortgaged by the mortgagor,
being a registered operator, and the mortgagee carries on any trade of the mortgagor in relation to such land or other
property, the mortgagee shall, from the date on which the mortgagee took possession of that land or other property,
until such time as the mortgagee ceases to be in possession of that land or other property, be deemed, to the extent
that the mortgagee carries on such trade, to be a registered operator.
56 Agents and auctioneers
(1) For the purposes of this Act, where an agent makes a supply of goods or services for and on behalf of any
other person who is the principal of that agent, that supply shall be deemed to be made by that principal and not by
that agent:
Provided that, where that supply is a taxable supply and that agent is a registered operator, the agent may,
notwithstanding anything to the contrary in this Act, issue a tax invoice or a credit note or a debit note in relation to
such supply as if the agent had made a taxable supply, and to the extent that that tax invoice or credit note or debit
note relates to that supply, the principal shall not also issue a tax invoice or a credit note or a debit note, as the case
may be.
(2) For the purposes of this Act, where any registered operator makes a taxable supply of goods or services to
an agent who is acting on behalf of another person who is the principal for the purposes of that supply, that supply
shall be deemed to be made to that principal and not to such agent:
Provided that such agent may nevertheless request that he be provided with a tax invoice and the registered
operator may issue a tax invoice or a credit note or debit note as if the supply were made to such agent.
(3) For the purposes of this Act, where any goods are imported into Zimbabwe by an agent who is acting on
behalf of another person who is the principal for the purposes of that importation, that importation shall be deemed
to be made by that principal and not by such agent:
 Provided that a bill of entry or other document prescribed in terms of the Customs Act in relation to that im-
portation may nevertheless be held by such agent.
(4) Notwithstanding subsection (3), where any goods are imported into Zimbabwe by an agent who is acting
on behalf of another person who is the principal for the purposes of that importation, and—
(a) the agent is a registered operator; and
(b) the principal is not a resident of Zimbabwe and is not a registered operator; and
(c) the goods are imported by the principal for the purposes of a supply made or to be made by him to a person
in Zimbabwe; and
(d) the agent obtains and retains such documentary proof as is acceptable to the Commissioner that—
(i) he paid the tax on importation on behalf of that principal; and
(ii) such agent and that principal agree in writing that the said tax has not and will not be reimbursed
to such agent by that principal;
that importation shall for the purposes of this Act be deemed to be made by such agent and not by that principal.
(5) Where—
(a) a tax invoice or a credit note or debit note in relation to a supply has been issued—
(i) by an agent as contemplated in subsection (1); or
(ii) to an agent as contemplated in subsection (2); or
(b) a bill of entry or other document prescribed in terms of the Customs Act in relation to the importation of
goods is held by an agent as contemplated in subsection (3);
the agent shall maintain sufficient records to enable the name and address and registration number of the principal
to be ascertained.
(6) For the purposes of subsection (7), the expression “auctioneer” means a registered operator carrying on a
trade which comprises or includes the supply by him by auction or by sale, of goods and services as an auctioneer
or agent for or on behalf of another person, hereinafter in this section referred to as “the principal”.
(7) Notwithstanding anything in the preceding provisions of this section, where the principal and the auctioneer
agree to have a supply by auction of any goods and services, other than a taxable supply, treated as if that supply
were made by the auctioneer and not by the principal, the supply shall be charged with tax as if it were made by the
auctioneer in the course or furtherance of the auctioneer’s trade and the auctioneer may—
(a) recover the amount of tax charged on that supply from that principal as a debt together with the costs of
recovery in any court of competent jurisdiction; or
(b) retain or deduct such amount and costs out of any money in the auctioneer’s hands belonging or payable to
the principal.
(8) Notwithstanding anything in subsection (2), where any registered operator makes a taxable supply, other
than a supply that is charged with tax at the rate of zero per centum under section ten, of goods or services to an
agent who is a registered operator and is acting for or on behalf of another person who is the principal for the
purposes of that supply, and—
(a) the principal is not a resident of Zimbabwe and is not a registered operator; and
(b) the supply is⎯
(i) directly in connection with either the exportation, or the arranging of the exportation, of
goods from Zimbabwe to any country or place outside Zimbabwe, or the importation, or
the arranging of the importation, of goods to Zimbabwe from any country or place outside
Zimbabwe, including, in either case, the transportation of those goods within Zimbabwe as
part of such exportation or importation, as the case may be; or
(ii) the supply is of services which comprise the handling, pilotage, salvage or towage of any
foreign-going aircraft while present in Zimbabwe or is of services provided in connection
with the operation or management of any foreign-going aircraft;
this Act shall, where such agent and such principal agree, apply as if the supply were made to that agent and not to
the principal.
PART IXA
SPECIAL PROVISIONS APPLICABLE TO SALES OF MOTOR VEHICLES
[Part IXA inserted by section 35 of Act 10 of 2003]
56A - 56B …
[Part IXA sections 56A and 56B repealed by section 35 of Act 8 of 2005]
 PART X
COMPLIANCE

57 Records
(1) Every registered operator shall keep such books of account (which books of account, where generated by
means of a computer, shall be retained in the form of a computer print-out) or other records as may enable him to
observe the requirements of this Act and enable the Commissioner to satisfy himself that the registered operator has
observed such requirements, and every registered operator shall, in particular, keep the following records and doc-
uments—
(a) a record of all goods and services supplied by or to the registered operator showing the goods and services,
and the suppliers or their agents, in sufficient detail to enable the goods and services, and the suppliers or the
agents to be readily identified by the Commissioner, and all invoices, tax invoices, credit notes, debit notes,
bank statements, deposit slips, stock lists and paid cheques relating thereto; and
(b) a record of all importations of goods and documents relating thereto as contemplated in paragraph (d) of
subsection (2) of section fifteen; and
(c) the charts and codes of account, the accounting instruction manuals and the system and programme docu-
mentation which describe the accounting system used in each tax period in the supply of goods and services;
and
(d) any documentary proof required to be obtained and retained in accordance with subsection (3) of section
ten.
(2) Such books of account, records and documents referred to in subsection (1), whether in their original form
or in a form authorised by the Commissioner in terms of subsection (4), shall at all reasonable times during the
relevant period referred to in subsection (3) be open for inspection by any person acting under the authority of the
Commissioner.
(3) All such books of account, records and documents, whether in their original form or in a form authorised
by the Commissioner in terms of subsection (4) shall—
(a) where kept in book form, be retained and carefully preserved by the registered operator for a period of six
years from the date of the last entry in any book; or
(b) where not kept in book form, be retained and carefully preserved by the registered operator for a period of
six years after the completion of the transactions, acts or operations to which they relate.
(4) The Commissioner may, subject to such conditions as he may determine, authorise the retention of the
information contained in any records or documents referred to in subsection (3), other than ledgers, cash books,
journals and paid cheques, in a form acceptable to him, in lieu of the retention of the originals of such records or
documents.
58 General provisions with regard to information, documents or items
(1) For the purposes of this Part—
“administration of this Act” includes—
(a) obtaining full information in relation to the—
(i) supply by any registered operator of goods and services supplied by him in the course or
furtherance of any trade carried on by him;
(ii) importation of any goods into Zimbabwe by any person; and
(iii) supply of any imported services by any person;
(b) ascertaining the correctness of any return, financial statement, document, declaration of facts or
valuation;
(c) determining the liability of any person for any tax and any interest or penalty in relation thereto
leviable under this Act;
(d) collecting any such liability;
(e) ascertaining whether an offence in terms of this Act has been committed;
(f) ascertaining whether a person has, other than in relation to a matter contemplated in paragraphs
(a), (b), (c), (d) and (e) of this definition, complied with this Act;
(g) enforcing any of the Commissioner’s powers under this Act to ensure that any obligation imposed
upon any person by or under this Act is complied with;
(h) performing any other administrative function which is necessary for the carrying out of any provi-
sion of this Act;
“authorisation document” means a written authorisation granted by the Commissioner to an officer to inspect,
audit, examine or obtain, any information, documents or items for the purposes of this Part;
“documents” include any document as defined in section 2 of the Civil Evidence Act [Chapter 8:01];
“information” includes any data stored by means of a computer;
“items” include any corporeal or incorporeal thing and any document relating thereto
 “judge” means a judge of the High Court;
“officer” means an officer referred to in subsection (1) of section five;
“premises” include any building, premises, aircraft, vehicle, vessel or place.
(2) Where any information, documents or items are submitted to the Commissioner in a language other than in
English, the Commissioner or any officer may by notice in writing require the registered operator or, on the regis-
tered operator’s default, any other person, to produce, within a reasonable period, a translation of the information,
documents or items, which translation shall be made, at the expense of the registered operator, by such person or
body as the Commissioner may approve.
(3) Any translation referred to in subsection (2) shall be—
(a) produced at such time and premises as may be specified by the Commissioner or any officer; and
(b) prepared and certified by a sworn translator or another person approved by the Commissioner or such of-
ficer.
59 Furnishing of information, documents or items by any person
The Commissioner or any officer may, for the purposes of the administration of this Act in relation to any
registered operator, require such registered operator or any other person to furnish such information, whether orally
or in writing, documents or items as the Commissioner or such officer may require.
60 Obtaining of information, documents or items at certain premises
(1) The Commissioner, or an officer named in an authorisation document, may, for the purposes of the admin-
istration of this Act in relation to any registered operator, require such registered operator or any other person, with
reasonable prior notice, to furnish, produce or make available any such information, documents or items as the
Commissioner or such officer may require to inspect, audit, examine or obtain.
(2) For the purposes of the inspection, audit, examination or obtaining of any such information, documents or
items, the Commissioner or an officer contemplated in subsection (1), may call on any person—
(a) at any premises; and
(b) at any time during such person’s normal business hours.
(3) For the purposes of subsection (2), the Commissioner or any officer contemplated in subsection (1) shall
not enter any dwelling-house or domestic premises, except any part thereof as may be occupied or used for the
purposes of trade, without the consent of the occupant.
(4) Any officer exercising any power under this section shall on demand produce the authorisation document
issued to him.
61 Powers of entry, search, etc.
(1) The Commissioner or an officer may, if he has reasonable grounds for believing that it is necessary to do
so for the enforcement of any tax in terms of this Act⎯
(a) at any reasonable time enter into any place of business of a trader;
(b) require any person to produce for inspection any⎯
(i) book, record, statement, account, trade list or other document; or
(ii) file, schedule, working paper or calculation relating to the determination of a taxpayer’s
income, expenses or liability for tax;
(c) require any person to prepare and additionally, or alternatively, to produce for inspection a print-out or
other reproduction of any information stored in a computer or other information retrieval system;
(d) take possession of any document or other thing referred to in paragraph (b) or (c) for so long as may be
necessary for the purpose of any examination, investigation, trial or inquiry:
Provided that the Commissioner, who shall take reasonable care to ensure that the information,
documents or items are preserved, may retain them until the conclusion of any investigation into the non-com-
pliance or offence in relation to which the information, documents or things were seized or until they are re-
quired to be used for the purposes of any legal proceedings under this Act, whichever event occurs last;
(e) require any person reasonably suspected of having committed an offence under this Act or any person who
may be able to supply information in connection with a suspected offence to give his name and address;
(f) pursue any inquiry which may be deemed by him to be necessary to ascertain whether any provision of this
Act is being complied with.
(2) Any person to whose affairs any information or documents taken or seized in terms of this section shall be
entitled to examine and make extracts from them during office hours or such further hours as the Commissioner
may in his directive allow and under such supervision as the Commissioner may determine.
62 Offences
(1) Any person who—
(a) falsely holds himself out as an officer engaged in the administration of this Act; or
(b) fails to comply with section thirteen; or
 (c) without just cause shown by him, refuses or neglects to do the following when so required by the Commis-
sioner or an officer for the purpose of the administration of this Act—
(i) furnish, produce or make available any information, documents or items;
(ii) reply to or answer truly and fully, any questions put to him; or
(iii) attend and give evidence as and when required; or
(d) hinders or obstructs or assaults any officer engaged in carrying out his duties under this Part; or
(e) fails to notify the Commissioner upon becoming a representative registered operator, as required by sub-
section (7) of section forty-seven to notify the Commissioner; or
(f) being an auctioneer or a supplier of goods or services—
(i) declares to any person to whom goods or services are supplied by such auctioneer or supplier that
tax has been included in or will be added to the price or amount chargeable in respect of such supply, where in fact
no tax is payable in terms of this Act; or
(ii) without reasonable cause, the proof whereof shall be on him, includes in or adds to the price or
amount charged to the recipient in relation to such supply any tax, where in fact no tax is payable in terms of this
Act; or
(iii) without reasonable cause, the proof whereof shall be on him, includes in or adds to the price or
amount charged to the recipient in relation to such supply any tax in excess of the tax properly leviable under this
Act in respect of the value of such supply; or
(g) without reasonable cause, the proof whereof shall be on him or her—
(i) contravenes the proviso to section 20(1)(a), or section 20(4), or subparagraph A of the proviso to
section 21(3); or
(ii) fails to comply with section21(3);
[Paragraph substituted by Act 1 of 2014]
(h) being a registered operator, fails to provide another registered operator with a tax invoice, credit note or
debit note as required by this Act;
(i) …
[Paragraph repealed by Act 8 of 2011]
(j) contravenes section seventy;
(k) contravenes any provision of any regulations made in terms of section seventy-eight with which it is his or
her duty to comply;
[Paragraph inserted by section 28 of Act 29 of 2004]
shall be guilty of an offence and liable on conviction to a fine not exceeding level seven or to imprisonment for a
period not exceeding twelve months or to both such fine and such imprisonment.
[Subsection amended by section 35 of Act 10 of 2003]
(2) Any person who, being under a duty to do so, fails without reasonable cause (the proof whereof shall be on
him or her) to apply for registration as required by section 23, or fails to comply with section 25,28 or 30, shall—
(a) be liable for a civil penalty of thirty United States dollars for each day the person remains in default, not
exceeding a period of one hundred and eighty-one days:
Provided that the Commissioner shall have power to waive the payment or refund the whole or
part of any penalty prescribed under this paragraph if he or she is satisfied that the contravention was not wilful,
or not due to the want of reasonable care; and
(b) if the personcontinues to be in default after the period specified in paragraph (a), be guilty of an offence
and liable on conviction to a fine not exceeding level seven or to imprisonment for a period not exceeding
twelve months or to both such fine and such imprisonment.
[Subsection substituted by Act 1 of 2014]
(2a) Any person who fails to comply with any of the requirements of section 57 shall be guilty of an offence
and liable to—
(a) a fine not exceeding level seven; or
(b) a fine equivalent to ten per centum of the person’s taxable supplies for the tax period appropriate to the
category to which that person belongs in terms of section 27 as a registered operator;
whichever is the greater amount, or to imprisonment for a period not exceeding three months, or to both such fine
and such imprisonment.
[Subsection inserted by Act 8 of 2012]
(3) If, upon conviction of any person for an offence under subsection (1) or (2), it is proved that that person
has been previously convicted under either of those subsections, then such person shall be liable to a fine not ex-
ceeding level fourteen or to imprisonment for a period not exceeding twelve months or to both such fine and such
imprisonment.
[Subsection amended by section 36 of Act 10 of 2003]
63 Offences and penalties in regard to tax evasion
(1) Any person who with intent to evade the payment of tax levied under this Act or to obtain any refund of
tax under this Act to which such person is not entitled or with intent to assist any other person to evade the payment
of tax payable by such other person under this Act or to obtain any refund of tax under this Act to which such other
person is not entitled—
(a) makes or causes or allows to be made any false statement or entry in any return rendered in terms of this
Act, or signs any statement or return so rendered without reasonable grounds for believing the same to be true;
or
(b) gives any false answer, whether verbally or in writing, to any request for information made under this Act
by the Commissioner or any person duly authorised by the Commissioner or any officer; or
(c) prepares or maintains or authorises the preparation or maintenance of any false books of account or other
records or authorises the falsifications of any books of account or other records; or
(d) makes use of any fraud, art or contrivance whatsoever, or authorises the use of such fraud, art or contriv-
ance; or
(e) makes any false statement for the purposes of obtaining any refund of or exemption from tax; or
(f) receives, acquires possession of or deals with any goods or accepts the supply of any service, knowing or
having reason to believe that the tax on the supply of the goods or services has been or will be evaded; or
(g) knowingly issues any tax invoice, credit note or debit note required under this Act which is in any material
respect erroneous or incomplete; or
(h) knowingly issues any tax invoice showing an amount charged as tax where the supply in respect of which
the tax is charged will not take place; or
(i) for the purposes of subsection (2) of section fifteen, fabricates, produces, furnishes or makes use of any tax
invoice, debit note, credit note, bill of entry or other document contemplated in that section knowing the same
to be false;
shall be guilty of an offence and liable on conviction to a fine not exceeding level twelve or to imprisonment for a
period not exceeding twenty-four months or to both such fine and such imprisonment.
[Subsection amended by section 37 of Act 10 of 2003]
(2) Wherever in any proceedings under this section it is proved that any false statement or entry has been made
in any return rendered under this Act by or on behalf of any person or in any books of account or other records of
any person, that person shall be presumed, until the contrary is proved, to have made that false statement or entry
or to have caused that false statement or entry to be made or to have allowed it to be made with intent to evade the
payment of tax or to obtain a refund of tax to which that person is not entitled, as the case may be, and any other
person who made any such false statement or entry shall be presumed, until the contrary is proved, to have made
such false statement or entry with intent to assist the first-mentioned person to evade the payment of tax or to obtain
a refund of tax to which he is not entitled.
(3) A conviction for an offence in terms of this Act shall not exempt the person convicted from the payment
of any tax, additional tax, penalty or interest payable in accordance with any provision of this Act.
(4) If, upon conviction of any person for an offence under subsection (1), it is proved that that person has been
previously convicted under that subsection, then such person shall be liable to a fine not exceeding twice level
twelve or to imprisonment for a period not exceeding twenty-four months or to both such fine and such imprison-
ment.
[Subsection amended by section 37 of Act 10 of 2003]
63A Offences and penalties in regard to fiscalisation
(1) Words or phrases defined in the Schedule bear the same meaning when used in this section.
(2) Any person—
(a) registered or required to be registered as an operator under this Act who fails to issue a fiscal tax invoice
or receipt to any buyer of its goods or services or (if such issuance is refused by the buyer for any reason), to
retain a copy of the same for a period of at least twenty-four months from the date of the purchase, shall be
guilty of an offence and liable on conviction to a fine not exceeding level 7 or to imprisonment for a period not
exceeding six months or to both such fine and such imprisonment; or
(b) registered or required to be registered as an operator under this Act who fails to produce to an officer of the
Authority on demand a fiscal tax invoice or receipt in proof of the purchase of any its goods or services at any
time within a period of twelve months from the date of the demand, shall be guilty of an offence and liable on
conviction to a fine not exceeding level 7 or to imprisonment for a period not exceeding six months or to both
such fine and such imprisonment;
(c) who manufactures, sells or offers to sell, or distributes fiscal memory devices to any person, not being a
supplier of such devices who is approved by the Authority in terms of regulations made in terms of section 78,
shall be guilty of an offence and liable on conviction to a fine not exceeding level fourteen or to imprisonment
for a period not exceeding five years or to both such fine and such imprisonment;
 (d) registered or required to be registered as an operator under this Act deliberately tampers with an electronic
fiscal device with the result that it fails faithfully to record any transactions subject to tax under this Act, shall
be guilty of an offence and liable on conviction to a fine not exceeding level fourteen or to imprisonment for a
period not exceeding five years or to both such fine and such imprisonment
[Section inserted by s 21 of Act 13 of 2023]
64 Offences: increased penalty on subsequent conviction
If, upon conviction of any person for an offence under section sixty-two for⎯
(a) failing or neglecting to furnish, file or submit any return or document required by the Commissioner; or
(b) refusing or neglecting to furnish any information or reply, or to produce any books or papers required of
him by the Commissioner or any other officer;
within any reasonable period fixed by the Commissioner or any other officer and of which notice has been given to
him by the Commissioner, it is proved that that person has been previously convicted of a like failure, neglect or
refusal in relation to the same return, document, information, reply, books or papers, then such person shall, in
addition to any punishment inflicted under such section, be liable also to a fine not exceeding fifty dollars for each
day that he is in default, or to imprisonment for a period not exceeding twelve months.
65 Imposition of fine by Commissioner
(1) If a person alleged to be an offender under this Act, hereinafter called the alleged offender, agrees to pay a
specified fine proposed by the Commissioner, which does not exceed the maximum penalty provided by this Act
for the offence in question, the Commissioner may impose such fine on the alleged offender:
Provided that, if criminal proceedings have been instituted against the alleged offender for such offence, the
power conferred by this subsection shall not be exercised without the prior approval of the Prosecutor-General.
[Proviso amended by Act 5 of 2014]
(2) The Commissioner shall, at the request of the alleged offender, furnish him with a written statement setting
out the nature of the offence, the date of its occurrence and the fine imposed under subsection (1), and such written
statement may be used as prima facie proof of the facts stated therein.
(3) If a fine imposed in terms of subsection (1) is not paid on demand, the Commissioner may institute civil
action in a court of competent jurisdiction for the recovery of such fine.
(4) The imposition of a fine under subsection (1) shall not be treated as a conviction of an alleged offender of
a criminal offence and no prosecution for the offence in question shall thereafter be competent.
(5) A fine imposed in terms of this section shall not exempt the person concerned from the payment of any tax
or penalties payable in terms of this Act.
66 Additional tax in case of evasion
(1) Where any registered operator or any person under the control or acting on behalf of the registered operator
fails to perform any duty imposed upon him by this Act or does or omits to do anything, with intent—
(a) to evade the payment of any amount of tax payable by him; or
(b) to cause a refund to him by the Commissioner in terms of subsection (1) of section forty-four of any amount
of tax, such amount being referred to hereunder as the excess, which is in excess of the amount properly re-
fundable to him under the said section, read with subsection (6) of section fifteen, before applying subsection
(6) of section forty-four;
such registered operator shall be chargeable with additional tax not exceeding an amount equal to the amount of tax
referred to in paragraph (a) or the excess referred to in paragraph (b), as the case may be.
(2) The amount of the said additional tax shall be assessed by the Commissioner and shall be paid by the
registered operator within such period as the Commissioner may allow.
(3) The power conferred upon the Commissioner by this section shall be in addition to any right conferred
upon him by this Act to institute or take other proceedings under this Act.
67 Recovery of tax from recipient
(1) Where in respect of any supply made by a registered operator the registered operator has, in consequence
of any fraudulent action or any misrepresentation by the recipient of the supply, incorrectly applied a rate of zero
per centum or treated such supply as being exempt from tax, the Commissioner may, notwithstanding anything to
the contrary contained in this Act, raise an assessment upon the recipient for the amount of tax payable, together
with any penalty or interest that has become payable in terms of section thirty-nine in respect of such amount, and,
in raising such assessment, the Commissioner may estimate the amount on which the tax is payable.
(2) The amounts payable under such assessment shall be paid by the recipient within such period as the Com-
missioner may allow and shall be recoverable from the recipient in the manner provided in section forty.
(3) This section shall not be construed as preventing the Commissioner from recovering the amounts of unpaid
tax, penalty and interest from the registered operator, but in the event of such amounts being recovered from the
recipient the registered operator shall be absolved from liability for the payment of the amounts due.
68 Reporting of unprofessional conduct
(1) For the purposes of this section “controlling body” means any professional association, body or board
which has been established, whether voluntarily or by or under any law, for the purpose of exercising control over
the carrying on of any profession, calling or occupation and which has power to take disciplinary action against any
person who in the carrying on of such profession, calling or occupation fails to comply with or contravenes any
rules or code of conduct laid down by such association, body or board.
(2) Where any person who carries on any profession, calling or occupation in respect of which a controlling
body has been established has, in relation to the affairs of any other person, hereinafter referred to as a client, done
or omitted to do anything which in the opinion of the Commissioner—
(a) was intended to enable or assist the client to evade or unduly postpone the performance of any duty or
obligation imposed on such client by or under this Act or to obtain any refund of tax under this Act to which
such client is not entitled, or by reason of negligence on the part of such person resulted in the avoidance or
undue postponement of the performance of any such duty or obligation or the obtaining of any such refund;
and
(b) constitutes a contravention of any rule or code of conduct laid down by the controlling body which may
result in disciplinary action being taken against such person by the body;
the Commissioner may lodge a complaint with the said controlling body.
(3) The Commissioner may in lodging any complaint under subsection (2) disclose such information relating
to the client’s affairs as in the opinion of the Commissioner it is necessary to lay before the controlling body to
which the complaint is made.
(4) Before lodging any such complaint or disclosing any information the Commissioner shall deliver or send
to the client and the person against whom the complaint is to be made a written notification of his intended action
setting forth particulars of the said information.
(5) The client or the said person may within thirty days after the date of such written notification lodge in
writing with the Commissioner any objection he may have to the lodging of the said complaint.
(6) If on the expiry of the said period of thirty days no objection has been lodged as contemplated in subsection
(5), or if an objection has been lodged and the Commissioner is not satisfied that the objection should be sustained,
the Commissioner may thereupon lodge the complaint as contemplated in subsection (2).
(6) The complaint shall be considered by the controlling body to which it is made and may be dealt with by it
in such manner as the controlling body in terms of its rules sees fit:
Provided that any hearing of the matter shall not be public and may only be attended by persons whose attend-
ance, in the opinion of the controlling body, is necessary for the proper consideration of the complaint.
(7) The controlling body with which a complaint is lodged and its members shall at all times preserve and aid
in preserving secrecy in regard to such information as to the affairs of the client as may be conveyed to them by the
Commissioner or as may otherwise come to their notice in the investigation of the Commissioner’s complaint and
shall not communicate such information to any person whatsoever other than the client concerned or the person
against whom the complaint is lodged, unless the disclosure of such information is ordered by a competent court of
law.
PART XA
APPLICATION OF INFORMATION TECHNOLOGY TO ACT
[Part inserted by Act 12 of 2006]
68A Interpretation in Part XA
In this Part—
“access”, means gaining entry into, instructing or communicating with the logical, arithmetical or memory
function resources of a computer, computer system or computer network;
“affixing a digital signature”, in relation to an electronic record or communication, means authenticating the
electronic record or communication by means of a digital signature;
“computer” means any electronic, magnetic, optical or other high speed data processing device or system
which performs logical, arithmetic and memory functions by manipulation of electronic, magnetic or optical
impulses and includes all input, output, processing, storage, computer software or communication facilities
which are connected or related to the computer in a computer system or a computer network;
“computer network” means the interconnection of one or more computers through—
(a) the use of satellite, microwave, terrestrial line or other communication media; and
(b) terminals or a complex consisting of two or more interconnected computers whether or not the
interconnection is continuously maintained;
“computer system”, means a device or collection of devices, including input and output devices capable of
being used with external files, which contain computer programmes, electronic instructions and input and
 output data, and that performs logic, arithmetical, data storage and retrieval, communication control and other
functions;
‘digital signature” means an electronic signature created by computer that is intended by the registered user
using it and by the Commissioner accepting it to have the same effect as a manual signature, and which com-
plies with the requirements for acceptance as a digital signature specified in subsection (1) of section sixty
eight F.
“electronic data” means any information, knowledge, fact, concept or instruction stored internally in the
memory of the computer or represented in any form (including computer printouts, magnetic optical storage
media, punched cards or punched tapes) that is being or has been prepared in a formalised manner and is
intended to be or is being or has been processed in a computer system or network;
“electronic record or communication” means electronic data that is recorded, received or sent in an electronic
form or in microfilm or computer-generated microfiche;
“intermediary”, with respect to any particular electronic communication, means any person who on behalf of
another person receives, stores or transmits that communication or provides any service with respect to that
communication;
“Internet” has the meaning given to that word by the Postal and Telecommunications Act [Chapter 12:05];
“originator”, means a person who sends, generates, stores or transmits any electronic communication to be
sent, generated, stored or transmitted to any other person, but does not include an intermediary;
“registered user” means a person registered in terms of section sixty-eight E;
“user agreement”, means the agreement between the registered user and the Commissioner referred to in sec-
tion sixty-eight D.
68B Use of electronic data generally as evidence
(1) Notwithstanding anything to the contrary contained in any other law, the admissibility in evidence of any
electronic data for any purpose under this Act shall not be denied—
(a) on the sole ground that it is electronic data; or
(b) if it is the best evidence that the person adducing it can reasonably be expected to obtain, on the grounds
that it is not in original form.
(2) Information in the form of electronic data shall be given due evidential weight.
(3) In assessing the evidential weight of electronic data a court shall have regard to such of the following
considerations as may be applicable in the circumstances of the case—
(a) the reliability of the manner in which the data was generated, stored and communicated; and
(b) the reliability of the manner in which the integrity of the data was maintained; and
(c) the manner in which its originator was identified.
68C Establishment of computer systems for tax purposes
The Commissioner may, notwithstanding anything to the contrary in this Act, establish and maintain a computer
system for the purpose of applying information technology to any process or procedure under this Act, including—
(a) the despatch and receipt and processing of any return, record, assessment, receipt invoice, bill of entry,
credit or debit note, declaration, form, notice, statement or other document relating to any amount liable to tax;
and
(b) the electronic processing of any return, record, assessment, receipt, invoice, bill of entry, credit or debit
note, declaration, form, notice, statement or other document.
68CC Virtual Fiscalisation System
For the purposes of creating an electronic platform to enable the electronic recording by taxpayers of transac-
tions that may be liable to tax under this Act (to be known as the Virtual Fiscalisation System), the Minister shall
in regulations made under section 78 prescribe the rules to be followed by taxpayers using the Virtual
Fiscalisation System.
[Section 68CC inserted by Act 10 of 2022]
68D User agreements
(1) The Commissioner may, for the purpose of regulating communication through a computer system estab-
lished in terms of section 68C, prescribe the form of a user agreement to be entered between the Zimbabwe Revenue
Authority and registered users.
(2) A user agreement shall set out—
(a) the terms and conditions governing communication through a computer system established in terms of
section 68C, including—
(i) the use by registered users of computer equipment and facilities of a class or kind specified in the
agreement;
(ii) the allocation to a registered user of a digital signature by the Commissioner;
 (iii) the requirement that registered users ensure the security of the digital signatures allocated to them
in the manner specified in the agreement,
(b) the manner of affixing a digital signature to any electronic communication or record;
(c) the conditions of reasonable access to the computer system of the registered user by the Commissioner for
such verification and audit purposes as may be required by this Act;
(d) the manner and period of keeping electronic records that are necessary or convenient to be kept in connec-
tion with a computer system established in terms of section sixty-eight C.
68E Registration of registered users and suspension or cancellation of registration
(1) No person shall communicate with the Commissioner through a computer system established in terms of
section 68C unless such person is a registered user.
(2) An application for registration as a registered user shall be made in the prescribed form, and be accompa-
nied by the user agreement completed by the applicant and the prescribed fee, if any, and such other information as
the Commissioner may reasonably require the applicant to furnish in support of the application.
(3) If, after considering an application in terms of subsection (2) and making such enquiries as he or she may
deem necessary, the Commissioner is satisfied that the applicant—
(a) is a registered operator or other person who will make regular use of the computer system established in
terms of section sixty-eight C;
(b) will introduce adequate measures to—
(i) prevent disclosure of the digital signature allocated to him or her by the Commissioner to any
person not authorised to affix such signature;
(ii) safeguard the integrity of information communicated through a computer system established in
terms of section 68C, apart from any change which may occur in the normal course of such communication or
during storage and display of such information;
(c) will maintain the standard of reliability of his or her own computer system required in accordance with the
requirements of the user agreement;
the Commissioner may approve the application, subject to such reasonable conditions as he or she may impose
either generally or in relation to the applicant.
(4) If, at anytime after granting an application in terms of subsection (3), the Commissioner is satisfied that a
registered user—
(a) has not complied with the requirements of his or her user agreement or with any condition or obligation
imposed by the Commissioner in respect of such registration;
(b) has made a false or misleading statement with respect to any material fact or omits to state any material
fact which was required to be stated in the application for registration;
(c) fails to make regular use of the computer system established in terms of section sixty-eight C;
(d) has contravened or failed to comply with any provision of this Act;
(e) has been convicted of an offence under this Act;
(f) has been convicted of an offence involving dishonesty;
(g) is sequestrated or liquidated;
(h) ceases to be a registered operator;
the Commissioner may cancel or suspend for a specified period the registration of the registered user.
(5) Before cancelling or suspending the registration of a registered user in terms of subsection (4) the Com-
missioner shall—
(a) give notice to the registered user of the proposed cancellation or suspension; and
(b) provide the reasons for the proposed cancellation or suspension; and
(c) afford the registered user a reasonable opportunity to respond and make representations as to why the reg-
istration should not be cancelled or suspended.
68EE Commissioner may require registered operators to become registered users
(1) The Commissioner may, by notice in writing to any registered operator, require such taxpayer to become a
registered user.
(2) On receiving a notice the registered operator concerned shall make an application in terms of section 68E
to become a registered user.
(3) A registered operator upon whom the Commissioner has served a notice in terms of subsection (1) and who
fails without just cause to comply with the notice within the first seven days of the period of one hundred and eighty-
one days referred to in paragraph (a) below, shall—
(a) be liable for a civil penalty of thirty United States dollars (or the maximum monetary figure specified from
time to time for level four, whichever is the lesser amount) for each day the registered operator remains in
default, not exceeding a period of one hundred and eighty-one days:
 Provided that the Commissioner shall have power to waive the payment or refund the whole or
part of any penalty prescribed under this paragraph if he or she is satisfied that the contravention was not wilful,
or not due to the want of reasonable care; and
(b) if the registered operator continues to be in default after the period specified in paragraph (a), be guilty of
an offence and liable on conviction to a fine not exceeding level ten or to imprisonment for a period not ex-
ceeding six months or to both such fine and such imprisonment.
(4) A civil penalty order that becomes payable by the infringer shall constitute a debt due by the infringer to
the Zimbabwe Revenue Authority and shall. at any time after it becomes due, be recoverable in a court of competent
jurisdiction by proceedings in the name of the Authority.
(5) The amount of a civil penalty shall be paid into and form part of the funds of the Zimbabwe Revenue
Authority.
[Section inserted by Act 3 of 2017]
68F Digital signatures
(1) Every digital signature intended for use in connection with a computer system established in terms of sec-
tion 68C shall comply with the following requirements, namely it must—
(a) be unique to the registered user and under the sole control of the registered user; and
(b) be capable of verification; and
(c) be linked or attached to electronically transmitted data in such a manner that, if the integrity of the data
transmitted is compromised, the digital signature is invalidated; and
(d) .be in complete conformity with the requirements prescribed by the Commissioner and contained in the
user agreement.
(2) The Commissioner shall, on registering a user, allocate to the registered user—
(a) if the user is a natural person, a digital signature or sufficient digital signatures for the user and each em-
ployee of the user nominated in the user agreement; or
(b) if the user is not a natural person, sufficient digital signatures for each employee of the user nominated in
the user agreement.
68G Production and retention of documents
Where any provision of this Act prescribes or requires that documents, records, information or the like should
be retained for a specific period, that requirement shall be deemed to have been satisfied by a registered user if such
documents, records, information or the like are so retained in electronic form that—
(a) the information contained therein remains accessible so as to be subsequently usable; and
(b) the electronic record is retained in the format in which it was originally generated, sent or received or in a
format which can be demonstrated to represent accurately the information originally generated, sent or received;
and
(c) the details which will facilitate the identity of the origin, destination, date and time of dispatch or receipt
of such electronic record are available in the electronic record.
68H Sending and receipt of electronic communications
(1) An electronic communication through a computer system established in terms of section eighty D or the
record of such communication shall be attributed to the originator—
(a) if it was sent by the originator; or
(b) if it was sent by a person who had the authority to act on behalf of the originator in respect of that commu-
nication or record; or
(c) •if it was sent by a computer system programmed by or on behalf of the originator to operate automatically.
(2) Where the Commissioner and a registered user have not agreed that an acknowledgment of receipt of elec-
tronic communication be given in any particular form or by any particular method, an acknowledgement may be
given by—
(a) any communication by the Commissioner, electronic or otherwise; or
(b) conduct by the Commissioner or any officer sufficient to indicate to the registered user that the electronic
communication has been received.
(3) Where the Commissioner and the registered user have agreed that an electronic communication shall be
binding only on the receipt of an acknowledgement of such electronic communication shall be deemed not to have
been sent.
(4) As between .a computer system established in terms of section 68C and any other computer system of a
registered user, the lodgement of an electronic communication occurs when it enters a computer system outside the
control of the originator.
(5) The time of receipt of an electronic communication shall be the time when the electronic communication
enters the computer—
(a) where the electronic communication is by a registered user, at any office of the Zimbabwe Revenue Au-
thority, or of the Commissioner, to whichever it was addressed, and such office shall be the place of receipt; or
 (b) if the electronic communication is sent by the Zimbabwe Revenue Authority or the Commissioner to a
registered user, at the place of receipt that is stipulated in the user agreement.
(6) Whenever any registered user is authorised to submit and sign electronically any return, record, assessment,
receipt, invoice, bill of entry, credit or debit note, declaration, form, notice, statement or the like, which is required
to be submitted and signed in terms of this Act, such signature electronically affixed to such electronic communi-
cation and communicated to the Zimbabwe Revenue Authority or the Commissioner, shall, for the purposes of this
Act, have effect as if it was affixed thereto in manuscript, and acceptance thereof shall not be denied if it is in
conformity with the user agreement concluded between the Commissioner and the registered user.
(7) The Commissioner may, notwithstanding anything to the contrary contained in this section, permit any
registered user to submit electronically any return, record, assessment, receipt, invoice, bill of entry, credit or debit
note, declaration, form, notice, statement or the like, which is required to be submitted in terms of this Act, by using
the Internet, and subject to such exceptions, adaptations or additional requirements as the Commissioner may stip-
ulate or prescribe, this section shall apply to the submission of the foregoing documents using the Internet.
68I Obligations, indemnities and presumptions with respect to digital signatures
(1) If the security of a digital signature allocated to a registered user has been compromised in any manner the
registered user shall inform the Commissioner in writing of that fact without delay.
(2) No liability shall attach to the Commissioner, the Zimbabwe Revenue Authority or any officer or employee
thereof for any failure on the part of a registered user to ensure the security of the digital signature allocated to him
or her and, in particular where electronic data authenticated by a digital signature is received by the Commissioner
or the Zimbabwe Revenue Authority—
(a) without the authority of the registered user to whom such signature was allocated; and
(b) before notification to the Commissioner or the Zimbabwe Revenue Authority by the registered user that
the security of the digital signature allocated to him or her has been compromised;
the Commissioner or the Zimbabwe Revenue Authority shall be entitled to assume that such data has been commu-
nicated by, or with the authority of, the registered user of that digital signature.
(3) Where in any proceedings or prosecution under this Act or in any dispute to which the Zimbabwe Revenue
Authority is a party, the question arises whether a digital signature affixed to any electronic communication to the
Commissioner or the Zimbabwe Revenue Authority was used in such communication with or without the consent
and authority of the registered user, it shall be presumed, in the absence of proof to the contrary, that such signature
was so used with the consent and authority of the registered user.
68J Alternatives to electronic communication in certain cases
(1) Whenever a computer system established in terms of section 68C or any other computer system of a regis-
tered user is inoperative, the registered user and the Commissioner shall communicate with each other in writing in
the manner prescribed in this Act.
(2) The Commissioner may at any time require from any registered user the submission of any original docu-
ment required to be produced under any of the provisions of this Act.
68K Unlawful uses of computer systems
(1) A person who, not being the registered user of a digital signature to whom it is allocated, uses such a
signature in any electronic communication to the Commissioner or the Zimbabwe Revenue Authority without the
authority of such registered user, commits an offence and is liable to a fine not exceeding level twelve or to impris-
onment for a period not exceeding ten years or to both such fine and such imprisonment.
(2) A person who—
(a) makes a false electronic record or falsifies an electronic record; or
(b) dishonestly or fraudulently—
(i) makes, affixes any digital signature to, transmits or executes an electronic record or communica-
tion; or
(ii) causes any other person to make, affix any digital signature to execute, transmit or execute an
electronic record or communication;
commits an offence and is liable to a fine not exceeding level twelve or to imprisonment for a period not exceeding
ten years or to both such fine and such imprisonment.
PART XI
MISCELLANEOUS

69 Prices deemed to include tax

(1) Any price charged by any registered operator in respect of any taxable supply of goods or services shall for
the purposes of this Act be deemed to include any tax payable in terms of paragraph (a) of subsection (1) of section
six in respect of such supply, whether or not the registered operator has included tax in such price.
 (2) The amount of any deposit payable to or refundable by a registered operator in respect of a returnable
container shall be deemed to include tax.
70 Prices advertised or quoted to include tax
Any price advertised or quoted by any registered operator in respect of any taxable supply of goods or services
shall include tax and the registered operator shall in his advertisement or quotation state that the price includes tax:
Provided that—
(a) price tickets on goods need not state that the prices include tax if this is stated by way of a notice promi-
nently displayed at all entrances to the premises in which the trade is carried on and at all points in such premises
where payments are effected;
(b) the Commissioner may in the case of any registered operator or class of registered operators approve any
other method of displaying prices of goods or services by such registered operator or class of registered opera-
tors during a period approved by the Commissioner which commences before and ends after the 1st January,
2004, or, where the rate of tax is increased or reduced, the date on which the increased or reduced rate of tax
takes effect.
71 Rounding-off tables
Any amount of tax determinable under this Act shall be calculated, to the nearest cent giving advantage to the
taxpayer, as the Commissioner may from time to time prescribe.
72 Contract price or consideration may be varied according to rate of value-added tax
(1) Whenever the value-added tax is imposed or increased in respect of any supply of goods or services in
relation to which any agreement was entered into by the acceptance of an offer made before the tax was imposed or
increased, as the case may be, the registered operator may, unless agreed to the contrary in any agreement in writing
and notwithstanding anything to the contrary contained in any law, recover from the recipient, as an addition to the
amounts payable by the recipient to the registered operator, a sum equal to any amount payable by the registered
operator by way of the said tax or increase, as the case may be, and any amount so recoverable by the registered
operator shall, whether it is recovered or not, be accounted for by the registered operator under this Act as part of
the consideration in respect of the said supply.
(2) Whenever the value-added tax is withdrawn or decreased in respect of any supply of goods or services in
relation to which any agreement was entered into by the acceptance of an offer made before the tax was withdrawn
or decreased, as the case may be, the registered operator shall, notwithstanding anything to the contrary in any
agreement or law, reduce the amount payable to him by the recipient by way of any consideration in which the
amount of such tax was included, by a sum equal to the amount of the tax withdrawn or the amount by which the
tax was decreased, as the case may be.
(3) Whenever the value-added tax is imposed or increased, or withdrawn or decreased, as the case may be, in
respect of any supply of goods or services subject to any fee, charge or other amount, whether it is a fixed, maximum
or minimum fee, charge or other amount, prescribed by, or determined pursuant to, any enactment or measure having
the force of law, that fee, charge or other amount may be increased or shall be decreased, as the case may be, by the
amount of tax or additional tax charged or chargeable or the amount of tax no longer charged or chargeable, as the
case may be:
Provided that this subsection shall not⎯
(a) apply to any fee, charge or other amount if such fee, charge or other amount has been altered in any Act,
regulation or measure prescribing or determining such fee, charge or other amount to take account of any im-
position, increase, decrease or withdrawal of such tax;
(b) be construed so as to permit any further increase or require a further decrease, as the case may be, in a fee,
charge or other amount referred to in this subsection, where such fee, charge or other amount is calculated as a
percentage or fraction of another amount which represents the consideration in money for a taxable supply of
goods or services, other than a taxable supply charged with tax at the rate rof zero per centum or a supply which
is an exempt supply.
73 Application of increased or reduced tax rate
(1) For the purposes of subsections (2) and (3) goods shall be deemed to be provided by the supplier thereof
when such goods are delivered to the recipient and goods supplied under a rental agreement shall be deemed to be
provided to the recipient when he takes possession or occupation thereof:
Provided that where goods consist of fixed property supplied by way of a sale and transfer thereof is effected
by registration in a deeds registry that property shall for the purposes of this subsection be deemed to be delivered
to the recipient when such registration is effected.
(2) Subject to subsection (1), where⎯
(a) goods are provided before the date on which an increase or decrease in the rate of tax leviable under para-
graph (a) of subsection (1) of section six becomes effective in respect of the supply of such goods or the date
on which the tax is imposed or withdrawn in respect of the supply of such goods; or
 (b) goods are provided in respect of a supply contemplated in terms of paragraphs (a) and (b) of subsection (3)
of section eight during a period beginning before and ending before, on or after the said date; or
(c) services are performed during a period beginning before and ending before, on or after the date on which
an increase or decrease in the rate of tax leviable under paragraph (a) of subsection (1) of section six becomes
effective in respect of the supply of such services or the date on which the tax is imposed or withdrawn in
respect of the supply of such services;
and the supply of such goods or services, as the case may be, is in terms of section eight deemed to be made on or
after the said date, then—
(i) in the case of the increase or decrease in the rate of the tax on the said date, the tax payable in respect of
the supply of the goods referred to in paragraph (a) or the supply of the goods referred to in paragraph (b) which
are provided during a period referred to in that paragraph which ends before the said date or the supply of
services referred to in paragraph (c) which are performed during a period referred to in that paragraph which
expires before the said date, shall be determined at the rate applicable on the day before the said date or, in the
case of the imposition of the tax on the said date, any such supply of goods or services, as the case may be,
shall be deemed not to be subject to such tax or, in the case of the withdrawal of the tax on the said date, any
such supply of goods or services, as the case may be, shall be deemed to be subject to such tax as if such tax
had not been withdrawn; and
(ii) where the period referred to in paragraph (b) or the period referred to in paragraph (c) ends on or after the
said date, the value of the supply in respect of the period in question shall, on the basis of a fair and reasonable
apportionment, be deemed to consist of a part, hereinafter referred to as the first part, relating to the provision
of the goods or the performance of the services, as the case may be, before the said date and a part, hereinafter
referred to as the second part, relating to the provision of the goods or the performance of the services, as the
case may be, on or after the said date, and, in the case of the increase or decrease in the rate of the tax on the
said date, the tax payable in respect of each part shall be separately determined, the tax in respect of the first
part being determined at the rate applicable on the day before the said date and the tax in respect of the second
part at the rate applicable on the said date or, in the case of the imposition of the tax on the said date, the first
part shall be deemed not to be subject to such tax or, in the case of the withdrawal of the tax on the said date,
the first part shall be deemed not to be subject to such tax or, in the case of the withdrawal of the tax on the said
date, the first part shall be deemed to be subject to such tax as if such tax had not been withdrawn:
Provided that this subsection shall not apply in respect of any sale of fixed property.
(3) Subject to subsection (1), where goods or services would in terms of section eight be deemed to be supplied
at a time within the period commencing on the date of the announcement of an increase in the rate of tax leviable
in terms of paragraph (a) of subsection (1) of section six and ending on the day before the date on which the increase
in the rate of tax becomes effective, that supply shall, to the extent to which it consists of the provision of goods on
or after the day following the last day of the period of thirty days after the date on which the increase of the rate
becomes effective, or the performance of services on or after the date on which the increase of the rate becomes
effective, be deemed not to take place at the said time, but on the date on which the increase in the rate becomes
effective:
Provided that this subsection shall not apply where the supply takes place⎯
(a) in consequence of any payments customarily made or becoming due or invoices customarily issued, when
made, becoming due or issued at regular intervals for the provision of goods or the performance of services still
to be provided or performed; or
(b) under any written agreement referred to in subsection (4).
(4) Where—
(a) goods are sold in terms of a lay-by agreement as contemplated in paragraph (a) of subsection (4) of section
seven; or
(b) a service is supplied in relation to the said agreement as contemplated in paragraph (b) of subsection (4) of
section seven;
and such agreement is concluded before the date on which an increase of the rate of tax leviable in terms of paragraph
(a) of subsection (1) of section six becomes effective, and the deposit referred to in the said paragraph (a) of sub-
section (4) of section seven was paid before that date, the rate at which tax is in terms of the said paragraph (a) of
subsection (1) of section six leviable in respect of that supply, shall be the rate at which tax would have been levied
had the supply taken place on the date on which such agreement was concluded.
74 Tax relief allowable to certain diplomats and diplomatic and consular missions
(1) The Minister may, with the concurrence of the Minister responsible for foreign affairs, authorise the grant-
ing of relief, by way of a refund, in respect of value-added tax paid or borne—
(a) by any person enjoying full or limited immunity, rights or privileges under section 3 of the Privileges and
Immunities Act [Chapter 3:03], or is specified in a notice or list published in terms of sections 7 and 10 of that
Act, or otherwise as contemplated under the recognised principles of international law; or
 (b) by any diplomatic or consular mission of a foreign country established in Zimbabwe, relating to transactions
concluded for the official purposes of such mission.
(2) The relief contemplated in paragraph (a) of subsection (1) shall not be granted to⎯
(a) a citizen; or
(b) any permanent resident;
of Zimbabwe.
(3) The Minister may authorise any relief under this section on such conditions and subject to such restrictions
as he may deem fit.
(4) Any claim for a refund of tax under this section shall be made in such form and at such time as the Com-
missioner may prescribe and shall be accompanied by such proof of payment of tax or certification as the Commis-
sioner may require.
75 Forms and authentication and service of documents
(1) Any form, notice, demand or other document issued or given or made by or on behalf of the Commissioner
or any other officer in terms of this Act shall be sufficiently authenticated if the name or official designation of the
Commissioner or officer by whom the same is issued or given or made is stamped or printed thereon.
(2) Any form, notice, demand, document or other communication required or authorised under this Act to be
issued, given or sent to or served upon any person by the Commissioner or any other officer in terms of this Act
shall, except where otherwise provided in this Act, be deemed to have been effectively issued, given, sent or
served—
(a) if delivered to him; or
(b) if left with some adult person apparently residing at or occupying or employed at his last known abode or
office or place of business in Zimbabwe; or
(c) if despatched by registered or any other kind of post addressed to him at his last known address, which may
be any such place or office as is referred to in paragraph (b) or his last known post office box number or that of
his employer; or
(d) in the case of a company—
(i) if delivered to the public officer of the company contemplated in section 61 of the Taxes Act; or
(ii) if left with some adult person apparently residing at or occupying or employed at the place ap-
pointed by the company as its registered office in Zimbabwe or, where no such place has been appointed by the
company, if left with some adult person apparently residing at or occupying or employed at the last known office
or place of business of the company in Zimbabwe; or
(iii) if despatched by registered or any other kind of post addressed to the company or its public officer
at its or his last known address, which may be any such office or place as is referred to in subparagraph (ii) or its or
his last known post office box number or that of his employer.
(3) Any form, notice, demand, document or other communication referred to in subsection (2) which has been
issued, given, sent or served in the manner contemplated in paragraph (c) or subparagraph (iii) of paragraph (d) of
that subsection shall be deemed to have been received by the person to whom it was addressed at the time when it
would, in the ordinary course of post, have arrived at the place to which it was addressed, unless the Commissioner
is satisfied that it was not so received or was received at some other time or, where the time at which it was received
or the fact that it was received is in dispute in proceedings under this Act in any court having jurisdiction to decide
the matter, the court is so satisfied:
Provided that the preceding provisions of this subsection shall not apply where any person is in criminal pro-
ceedings charged with the commission of an offence under this Act by reason of his failure, refusal or neglect to do
anything which he is required to do in terms of the said form, notice, demand, document or other communication,
unless it was despatched to such person by registered or certified post.
(4) If the Commissioner is satisfied that any form, notice, demand, document or other communication, other
than a notice of assessment, issued, given sent or served in a manner contemplated in paragraphs (b), (c) or subpar-
agraphs (ii) or (iii) of paragraph (d) of subsection (2) or, has not been received by the person to whom it was
addressed or has been received by such person considerably later than it should have been received by him and that
such person has in consequence been placed at a disadvantage, the Commissioner may, if he is satisfied that the
circumstances warrant such action, direct that such form, notice, demand, document or other communication be
withdrawn and be issued, given, sent or served anew.
76 Arrangements and directions to overcome difficulties, anomalies or incongruities
If in any case the Commissioner is satisfied that in consequence of the manner in which any registered operator
or class of registered operators conducts his or their business, trade or occupation, difficulties, anomalies or incon-
gruities have arisen or may arise in regard to the application of any provisions of this Act, the Commissioner may
make an arrangement or give a direction as to—
(a) the manner in which such provisions shall be applied; or
 (b) the calculation or payment of tax or the application of any rate of zero per centum or any exemption from
tax provided in this Act;
in the case of such registered operator or class of registered operators or any person transacting with such registered
operator or class of registered operators as appears to overcome such difficulties, anomalies or incongruities:
Provided that such direction or arrangement shall not have the effect of substantially reducing or increasing the
ultimate liability for tax levied under this Act.
77 Schemes for obtaining undue tax benefits
(1) For the purposes of this section—
“scheme” includes any transaction, operation, scheme or understanding, whether enforceable or not, including
all steps and transactions by which it is carried into effect;
“tax benefit” includes—
(a) any reduction in the liability of any person to pay tax; or
(b) any increase in the entitlement of any registered operator to a refund of tax; or
(c) any reduction in the consideration payable by any person in respect of any supply of goods or
services; or
(d) any other avoidance or postponement of liability for the payment of any tax, duty or levy imposed
by this Act or by any other law administered by the Commissioner.
(2) Notwithstanding anything in this Act, whenever the Commissioner is satisfied that any scheme, whether
entered into or carried out before or after the 1st January, 2004,, and including a scheme involving the alienation of
property—
(a) has been entered into or carried out which has the effect of granting a tax benefit to any person; and
(b) having regard to the substance of the scheme—
(i) was entered into or carried out by means or in a manner which would not normally be
employed for bonafide business purposes, other than the obtaining of a tax benefit; or
(ii) has created rights or obligations which would not normally be created between persons
dealing at arm’s length; and
(c) was entered into or carried out solely or mainly for the purpose of obtaining a tax benefit;
the Commissioner shall determine the liability for any tax imposed by this Act, and the amount thereof, as if the
scheme had not been entered into or carried out, or in such manner as in the circumstances of the case he deems
appropriate for the prevention or diminution of such tax benefit.
(3) Any decision of the Commissioner under this section shall be subject to objection and appeal, and whenever
in proceedings relating thereto it is proved that the scheme concerned does or would result in a tax benefit, it shall
be presumed, until the contrary is proved that such scheme was entered into or carried out solely or mainly for the
purpose of obtaining a tax benefit.
78 Regulations
(1) Subject to subsection (3), the Minister may make regulations prescribing anything which under this Act is
to be prescribed or which in his opinion is necessary or convenient to be prescribed for carrying out or giving effect
to this Act.
(2) Without derogating from the generality of subsection (1) regulations made under that provision may pro-
vide for⎯
(a) the registration application form referred to in subsection (2) and (3) of section twenty-three;
(b) the form by a registered operator notifying the Commissioner of any changes referred to in section twenty-
five;
(c) the form of a return referred to in paragraph (a) of subsection (1) of section twenty-eight;
(d) the form of a return referred to in section thirty;
(3) Regulations in terms of subsection (1) may provide for the manner in which sales of goods which are rated
at zero per centum in terms of section ten, or on which no tax is payable in terms of subsection (1) of section eleven
are to be dealt with.
(4) Where any amount referred to in—
(a) paragraph (b) or subparagraph (ii) of paragraph (c) of the definition of “commercial rental establishment”
in section two;
(b) subsection (4) of section seven; or
(c) the proviso to subsection (2) or paragraph (a) of the proviso to (5) of section seventeen; or
(d) subsection (5) or (7) of section twenty; or
(e) paragraph (a) of, and the proviso to, subsection (1) of section twenty-three; or
(f) paragraph (b) of subsection (2), or subparagraph (i) of paragraph (a) of subsection (5), or subparagraph (i)
of paragraph (c) of subsection (6)of section twenty-seven; or
(g) paragraph (a) of subsection (3) of section thirty-nine; or
 (h) paragraph (b) of the proviso to subsection (1), or paragraph (b) of subsection (3) or (4), of section forty-
four;
is prescribed in regulations made in terms of this section instead of being prescribed by the Charging Act, section
30 of the Charging Act shall apply to such regulations in the same way that it applies to a statutory instrument
amending or replacing the rate of value-added tax or tax on imports mentioned in section 29 of the Charging Act.
(5) Regulations made under this section may prescribe for any contraventions thereof civil penalties of a pre-
scribed amount leviable by the Commissioner on behalf of the Zimbabwe Revenue Authority for each day during
which a contravention continues, not exceeding a prescribed number of days:
Provided that the Commissioner shall have power to waive the payment or refund the whole or part of any
penalty prescribed under this subsection if he or she is satisfied that the contravention was not wilful, or not due to
the want of reasonable care.
(6) A civil penalty prescribed under subsection (5) shall constitute a debt due to the Commissioner by the
person against whom it is levied, and shall, at any time after it becomes due, be recoverable in a court of competent
jurisdiction by proceedings in the name of the Commissioner or the Zimbabwe Revenue Authority.
(7) The amount of any penalty prescribed under subsection (5) that is received or recovered by the Commis-
sioner shall form part of the funds of the Zimbabwe Revenue Authority.
[Sections 5, 6 and 7 inserted by Act 9 of 2011]

PART XII
AGREEMENTS

79 Tax agreements
(1) Without derogation from the powers conferred on the President in terms of any other law, the President
may conclude conventions, treaties, agreements or other arrangements with the government of any country, under
such conditions as he may consider necessary, providing for any or all of the following matters—
(a) the prevention, mitigation or discontinuance of the levying, under the laws of Zimbabwe and such other
country, of value-added tax or any similar tax where the supply of goods or services is subject to such tax in
either Zimbabwe or such other country and such supply or the importation of such goods or services is also
subject to such tax in the other country which is a party to the agreement;
(b) the refunding of value-added tax or any similar tax, or any portion of such value-added tax or similar tax,
levied under the laws of Zimbabwe and such other country in respect of the supply of goods or services in
Zimbabwe or such other country, as the case may be, where such goods or services are imported into such other
country or Zimbabwe, as the case may be;
(c) regulating or co-ordinating any matter with regard to the levying and collection, under the laws of Zimba-
bwe and such other country, of value-added tax or any similar tax; or
(d) the rendering of reciprocal assistance in the administration of and the collection of value-added tax or any
similar tax under the laws of Zimbabwe and such other country, or in respect of the execution of the arrange-
ments provided for in any agreement entered into in terms of this section;
(e) concessions as to, or exemptions from, the tax normally payable in respect of supply of services or goods
grown, produced or manufactured in, or imported from, the territory of that government, in consideration of the
extension by that government of privileges in respect of supply of services or goods grown, produced or man-
ufactured in, or imported into the territory of that government from, Zimbabwe;
(f) payments to compensate for the extension of privileges by either of the parties in respect of supply of
services or goods grown, produced or manufactured in, or imported from, the territory of the other party;
(g) the importation, removal and exportation of goods, including the collection by the one party on behalf of
the other party of the value added tax imposed in respect of goods which, having been imported into the territory
of the one party, are removed into the territory of the other party, the payment of such tax or of an amount in
commutation thereof, and the charges for the collection of such tax.
(2) Any concession as to, or exemption from, tax referred to in paragraph (e) of subsection (1) and any payment
in compensation referred to in paragraph (f) of subsection (1) may be made or granted with retrospective effect if
the President considers it expedient to do so.
(3) Any convention, treaty, agreement or other arrangement concluded by the President in terms of subsection
(1) shall, as soon as may be possible after it is concluded, be published by notice in a statutory instrument, and
thereupon the arrangements so notified shall, subject to subsection (5), have effect as if enacted by this Act.
(4) The Minister shall lay a copy of every convention, treaty, agreement or other arrangement referred to in
subsections (1) before Parliament on one of the thirty days on which it next sits after the date on which the conven-
tion, treaty, agreement or other arrangement was published in terms of subsection (3).
(5) If Parliament, on one of the thirty days on which it next sits after a copy of a convention, treaty, agreement
or other arrangement has been laid before it in terms of subsection (4), does not by resolution approve such
convention, treaty, agreement or other arrangement, it shall cease to be of force or effect at the end of the thirtieth
sitting day.
(6) Any convention, treaty, agreement or other arrangement referred to in subsections (1) or any regulations
relative to thereto shall have force and effect notwithstanding anything inconsistent therewith contained elsewhere
in this Act or in any other law or instrument having effect by virtue of any law.
(7) The President may at any time by notice in a statutory instrument withdraw any notice made in terms of
subsection (3), and the arrangements notified in such earlier notice shall cease to have effect upon a date fixed in
such latter notice, but the withdrawal of any notice shall not affect the validity of anything previously done there-
under.
(8) The duty imposed by this Act to preserve secrecy with regard to such tax shall not prevent the disclosure
to any authorised officer of the country contemplated in subsection (1) of any information necessary for the proper
execution of the convention, treaty, agreement or other arrangement notified in terms of subsection (3).
80 President may suspend tax payable under agreement
Any suspension of tax granted in terms of this Part in respect of any tax may be extended in whole or in part
by the President, by notice in the Gazette, to any corresponding special rate of tax which may be applicable under
an agreement to the supply of services or goods grown, produced or manufactured in any particular country and
such suspension of tax may in like manner be amended or repealed.
PART XIII
GENERAL

81 Notice of variation of rate of tax

(1) The Minister may by notice in the Gazette make known for general information—
(a) that in terms of a taxation proposal tabled by him in Parliament, the rate of tax specified in section six is to
be increased to a rate set forth in that proposal and in that notice; or
(b) that it is proposed to decrease the rate of tax so mentioned to a rate set forth in that notice;
and the increased or decreased rate of tax so set forth shall, until an Act of Parliament is promulgated within six
calendar months after the publication of the notice in the Gazette, by which effect is given to the proposal or other
provision is made, apply for the purpose of determining amounts of tax in respect of supplies of goods and services
made by registered operators on any date falling on or after the date which the Minister has specified in the said
notice for the coming into operation of such increased or decreased rate of tax, as the case may be, or in respect of
importations of goods made on such date.
(2) When in any legal proceedings the question arises whether the Minister has tabled a taxation proposal
referred to in subsection (1), or as to the particulars contained in that proposal, a copy of a document purporting to
be printed by order of the Speaker of Parliament and to contain such proposal, shall be accepted as sufficient evi-
dence that such proposal was tabled and of the particulars contained therein.
81A Measures to protect value chain integrity and transparency, and to counter unfair competition by
informal traders
(1) In this section—
“compliant”, with reference to an informal trader, means compliant in every respect with regulations referred
to in subsection (6);
“consumer facility” means the purchase of goods by a person other than a registered operator from a wholesaler
under the conditions specified in subsection (3);
“informal trader” means an individual who carries on a trade for his or her own account but is not a registered
operator without limiting the generality of the term, includes—
(a) a hawker or street vendor; and
(b) a person who sells articles at a place commonly known as a “people’s market” or a “flea market”; and
(c) the operator of a tuck shop, that, one who sells good on premises, including residential premises, not li-
censable by the local authority for the sale of goods on a regular basis;
(d) any intermediary for any informal trader or informal traders generally who buys goods from a manufacturer
or wholesaler and sells them to informal traders;
“manufacturer” means a person who assembles or processes any commodity for distribution by wholesalers;
“retail trade” means the sale of any commodity in small quantities for consumption or use by the purchaser, &
the expressions “retail transaction”, “retailer” & “retail dealer” shall be construed accordingly;
“retailer” means any person engaged in the retail trade;
“wholesaler” means any person engaged in the wholesale trade, that is to say, the sale of any commodities in
large quantities or in bulk to a purchaser who intends to make a profit on the resale of the commodities or to
consume them.
 (2) Subject to this section, no person, other than a wholesaler which is a registered operator, and who produces
to the manufacturer proof of registration as such together with a current tax clearance certificate, may purchase
goods from a manufacturer.
(3) Subject to this section, no person, other than a retailer who or which is a registered operator, and who
produces to the wholesaler proof of registration as such together with a current tax clearance certificate, may pur-
chase goods from a wholesaler.
(4) A person other than one referred to in subsection (3) maypurchase goods from a wholesaler under the
following conditions—
(a) such person may purchase goods from the same wholesaler at intervals of not less than thirty days, up to a
limit per purchase not exceeding one thousand United States dollars (or its equivalent in Zimbabwe dollars at
the auction rate of exchange that prevailed on the date of the purchase);
(b) such person must produce a receipt of goods purchased from the same wholesaler that is dated no earlier
than thirty days from the date of the last purchase from the wholesaler;
(c) if the purchase is the first purchase by such person from that wholesaler in any calendar year, or if the
person concerned cannot produce a receipt in proof of a previous purchase from the same wholesaler, such
person can only purchase goods not exceeding twenty United States dollars (or its equivalent in Zimbabwe
dollars at the auction rate of exchange that prevailed on the date of the purchase); however the production of
such receipt for the next purchase;
(d) the wholesaler shall retain all copies of receipt produced in proof of previous purchases in terms of this
subsection for a period of at least three years, or may scan and store such data in digital format in a manner
approved by the Commissioner;
(e) the Commissioner shall at any time have access on demand to any data gathered by a wholesaler in terms
of paragraph(d) to determine whether any person availing himself or herself of the consumer facility is using
goods purchased by virtue of it for the purposes of informal trade.
(5) A wholesaler who was not operating a consumer facility before the 1st January, 2024, shall not avail such
a facility after that date without the leave of the Commissioner in writing.
(6) On such date as regulations made in terms of subsection (8) become operative, there shall be charged by
every wholesaler and manufacturer for the benefit of the Consolidated Revenue Fund a surcharge of thirty per
centum.
(a) on the value goods purchased by every informal trader using a consumer facility; and
(b) on the value goods purchased by individuals using a consumer facility, who are not informal traders or
registered operators, but exceed the thresholds for the purchase of such goods specified in subsection (3)(a)
and (c).
(7) The Commissioner shall build up and keep up to date a database of informal traders using a consumer
facility at any time during the previous period of twelve months.
(8) The Minister may by regulations made under section 78 prescribe anything which it is necessary, desirable
or expedient to prescribe for the purposes of this section.
(9) In particular, regulations—
(a) shall provide—
(i) that a compliant informal trader acting as an intermediary is liable for only half the surcharge, and the
informal trader to whom he or she sells goods purchased by virtue of a consumer facility is liable for the
other half, if the intermediary can produce a copy of a full receipt for such goods sold to the informal
trader;
(ii) for a system of registration of compliant informal traders, including the assignment to them of trader
identification numbers;
(b) shall provide that an informal trader acting as an intermediary is liable for only half the surcharge, and the
informal trader to whom he or she sells goods purchased by virtue of a consumer facility is liable for the other
half, if the intermediary can produce a copy of a full receipt for such goods sold to the informal trader;
(c) may provide a threshold for the value of goods sold by a compliant informal trader in any year using a
consumer facility, below which such trader will not become liable for the surcharge.
[Section inserted by s 22 of Act 13 of 2023]
81B Civil penalty orders
The provisions of the Schedule apply to any infringement of this Act in respect of which it is provided that a
civil penalty is payable.
[Section inserted by s 22 of Act 13 of 2023]
82 Transitional matters
(1) For the purposes of this Act, where—
 (a) goods are provided under a rental agreement for a period which commences before and ends on or after the
1st January, 2004,; or
(b) the performance of any services is commenced before and is completed on or after that date; or
(c) domestic goods and services are provided for a period which commences before and ends on or after that
date;
the value of the supply, as determined under this Act, shall not be reduced to take account of any portion thereof
made before the said date:
Provided that—
(i) where the goods referred to in paragraph (a) consist of fixed property, there shall be excluded from the
rental consideration of the supply so much of such consideration as is attributable to the portion of the period
referred to in that paragraph which ends before the said date;
(ii) where the services referred to in paragraph (b) were not taxable services for the purposes of the repealed
Act—
A. any progress payment in respect of that portion of the services performed before the said date shall
for the purposes of this Act be ignored; and
B. where any payment becomes due or is received in respect of services which were not taxable ser-
vices for the purposes of the repealed Act and which are commenced before and completed on or after the said date,
that portion of the payment which, on the basis of a fair and reasonable apportionment, is attributable to the portion
of the services performed before the said date shall be excluded from the consideration for the supply.
(2) For the purposes of this section—
“sales tax” means the sales tax levied under the repealed Act.
(3) For the purposes of subsection (14) where an option to purchase fixed property or a right of pre-emption in
respect of fixed property is granted, the agreement for the sale of the property shall be deemed to be concluded when
the option or right of pre-emption is exercised.
(4) Where any leased property has been leased by a registered operator under the repealed Act who is on the
1st January, 2004, a registered operator under this Act, to a lessee under a financial lease, as defined in section 2 of
the repealed Act, and such property is delivered to the lessee on or after that date, such property shall, notwithstand-
ing section eight, be deemed for the purposes of this Act to have been supplied to the lessee under an instalment
credit agreement at the time of delivery of such property.
(5) Where, on or after the 1st January, 2004,, any amount accrues to a registered operator who was a registered
operator for the purposes of the repealed Act and the amount so accruing, or a portion thereof, would, but for the
repeal of that Act, have been taken into account in the determination of a taxable value chargeable with sales tax,
value-added tax shall, notwithstanding anything in this Act to the contrary, be chargeable under this Act in respect
of that amount as though such amount were consideration for a supply of goods or services supplied by the registered
operator on the date on which that amount accrued.
(6) This Act shall not be construed as imposing value-added tax under paragraph (a) of subsection (1) of section
six in respect of—
(a) a provision of goods under a rental agreement entered into before the 1st January, 2004, for a period which
ended before that date where such goods did not constitute goods as defined in section 2 of the repealed Act;
or
(b) a performance of services under an agreement entered into before the 1st January, 2004, where the perfor-
mance of such services is completed before that date or such services were performed during and in respect of
a period which ended before that date, if in either case such services were not taxable services as contemplated
in the definition of “sale value” in section 2 of the repealed Act.
(7) Where the value of any supply of goods or services, as determined under section nine, includes any amount
which has been taken into account by a registered operator in the determination of a taxable value under the repealed
Act, and sales tax was chargeable in respect of such taxable value under section 4 of that Act or would have been
so chargeable but for section 8 of that Act, the value in respect of such supply shall for the purposes of the value-
added tax be reduced by the said amount, but excluding so much of that amount as represents sales tax.
(8) Where any payment is made or an invoice is issued on or after the date of promulgation of this Act and
before the 1st January, 2004, in respect of consideration for the supply of any goods or services, not being a trans-
action in respect of which a sale value is subject to sales tax, a supply of such goods or services shall be deemed to
have been made on the 1st January, 2004, to the extent to which such payment or invoice relates to the provision of
goods or the performance of services on or after the 1st January, 2004,:
Provided that this subsection shall not apply in respect of any payments customarily made or invoices custom-
arily issued, when made or issued at regular intervals for the provision of goods or performance of services still to
be provided or performed.
(9) In the case of a registered operator who was on the day before the 1st January, 2004, a registered operator
for the purposes of the repealed Act an adjustment shall be made in the manner provided in subsections (11) and
(12) in respect of sales tax attributable to an amount of bad debts previously written off but now recovered which
would, but for the repeal of that Act, have been accounted for under that Act.
(10) The sales tax attributable to an amount due in terms of subsection (9) shall be determined by applying the
formula⎯
r
xt
100 + r
in which formula “r” is the rate of sales tax, expressed as a percentage, which was in force on the day before the 1st
January, 2004, and “t” is the said amount.
(11) The adjustment in terms of subsection (9) shall be made in the tax period of the registered operator under
this Act which, as nearly as possible, corresponds with the tax period of the registered operator which would, but
for the repeal of the repealed Act, have applied under that Act.
(12) The adjustment in terms of subsection (9) shall be made by including in the amounts of output tax ac-
counted for in terms of subsection (3) of section fifteen in respect of the relevant tax period under this Act the amount
of sales tax attributable to the amount that would have been accounted for under the repealed Act and by including
in the amounts of input tax accounted for under subsection (3) of section fifteen such amount as would have been
accounted for under section 28A of that Act.
(13) Notwithstanding subsection (8), where fixed property has been disposed of under an agreement for the
sale of such property concluded before the 1st January, 2004,, the disposal of such property under such sale shall
be deemed not to be a supply of goods for the purposes of this Act:
Provided that where an agreement for the construction of improvements on such property has been concluded
before the said date and the consideration payable under such agreement is in terms of the Stamp Act, required for
the purpose of the payment of stamp duty to be added to the consideration payable in respect of the acquisition of
such property, such agreement and the agreement for the sale of the property shall for the purposes of this paragraph
be deemed to be one agreement for the sale of the property.
(14) Where any registered operator who is on or with effect from the 1st January, 2004, registered under section
twenty-three and on that date—
(a) carries on a construction, civil engineering or similar trade and has on hand a stock of materials acquired
by him prior to that date in order to be used by him for the purpose of incorporation in any building or other
structure or work of a permanent nature to be erected, constructed, assembled, installed, extended or embel-
lished by him in the course of such trade, and sales tax has been borne by him in respect of such materials; or
(b) has on hand a stock of consumable goods or maintenance spares acquired under sales concluded by him or
the importation by him prior to the 1st January, 2004, for the purpose of consumption or use in the course of
his trade, and sales tax has been borne by him in respect of such sales or importation;
and on or after that date any item of such stock is withdrawn by him for the purpose referred to in paragraph (a) or
the purpose referred to in paragraph (b), as the case may be, the registered operator may, provided he has taken
stock of such materials, consumable goods or maintenance spares, as the case may be, and he retains properly
prepared stock lists in respect of such stocktaking, include in the amounts of input tax deducted by him under
subsection (3) of section fifteen in respect of the tax period during which such item is withdrawn, the amount of
sales tax borne by him in respect of that item:
Provided that where the registered operator does not maintain records which are adequate enough to determine
when items are withdrawn from such stocks or the sales tax so borne thereon in respect of sales to him of such items,
the Commissioner may, on application by the registered operator, authorise him to deduct the actual sales tax borne
by him in respect of such sales or an amount of sales tax which on the basis of a reasonable calculation represents
the amount of sales tax so borne by him on the stocks in equal instalments by way of inclusions in the input tax
deducted by the registered operator in his tax returns over a period of two years or such shorter period as the Com-
missioner may allow.
(15) Where sales tax has been borne by any registered operator, being a person who is on or with effect from
the 1st January, 2004, registered under section twenty-three in respect of the acquisition of goods, other than fixed
property or goods incorporated therein, under a sale or the importation of goods and such goods are held by him on
the 1st January, 2004, as trading stock as defined in section 2 of the Taxes Act, whether or not the registered operator
is liable for normal tax under that Act, the registered operator may, provided he has taken stock of such goods and
he retains properly prepared stock lists in respect of such stocktaking, include the amount of that tax in the amount
of input tax deducted by him under subsection (3) of section fifteen in respect of the tax period during which such
goods are supplied by him in the course or furtherance of his trade:
Provided that where it appears to the Commissioner that the keeping of records for the purposes of subsection
(14) can be dispensed with without prejudice to revenue collections, the Commissioner may, on application by the
registered operator, authorise him to deduct the sales tax on stocks of such goods so held by the registered operator
in equal instalments by way of inclusions in the input tax deducted by the registered operator in his tax returns over
a period of six months or such shorter period as the Commissioner may allow.
(16) Where any person—
(a) is on the day before the 1st January, 2004, registered as a registered operator under the repealed Act;
(b) at the end of that day has in his possession goods, as defined in the repealed Act, which he has not disposed
of or which he has disposed of under a sale but for which he has not received full payment and in either case
sales tax was not borne by him on acquisition; and
(c) on the 1st January, 2004, is not a registered operator for the purposes of this Act;
he shall for the purposes of the repealed Act be deemed to have applied such goods on the day referred to in para-
graph (a) to a use or consumption contemplated in section 16 of that Act.
(17) Any sales tax payable under the repealed Act in respect of the taxable value of such goods as are referred
to subsection (16) shall be payable at the rate specified in the Charging Act and shall be paid to the Commissioner
within the period of three months reckoned from the day after the 1st January, 2004,, without penalty.
(18) Every person who on the 1st January, 2004, is a registered operator under the repealed Act shall be deemed
to be a registered operator under this Act if, on that date, he is liable to be registered in terms of Part IV of this Act.
83 Act binding on State, and effect of certain exemptions from taxes
(1) This Act shall bind the State.
(2) Any provision contained in any other law providing for an exemption from any tax or duty shall be con-
strued as applying or referring, as the case may be, to the tax leviable under this Act unless such tax is specifically
mentioned in such provision.
84 Repeal of Cap. 23:08 and savings
(1) Subject to subsection (2), the Sales Tax Act [Chapter 23:08] is repealed.
(2) Notwithstanding the repeal of the repealed Act⎯
(a) Nothing done or commenced or any decision made in terms of the repealed Act which, immediately before
the 1st January, 2004, had or was capable of acquiring effect shall continue to have or be capable of acquiring,
as the case may be, effect as if it had been done, commenced or made in terms of this Act;
[Subsection amended by section 27 of Act 2 of 2005]
(b) any provision of the repealed Act shall remain in force for the purposes of the levying, payment, assessment
and recovery of sales tax levied under that Act which is in terms of that Act deemed to have become payable
on a date falling before the 1st January, 2004, and matters connected therewith.
FIRST SCHEDULE…
[Repealed by s 38 of Act 10 of 2003]

SCHEDULE (Section 83B)

[Schedule inserted by s 22 of Act 13 of 2023]
CIVIL PENALTY ORDERS
ARRANGEMENT OF PARAGRAPHS
Section
1. Interpretation in Schedule.
2. Power of Commissioner to issue civil penalty orders and categories thereof.
3. Variation of certain penalties and limitation of multiple of penalties.
4. Service and enforcement of civil penalties and destination of proceeds thereof.
5. Limitation on issuance and enforcement of civil penalty orders.
6. Additional due process requirements before service of certain civil penalty orders.
7. Judicial review of civil penalty orders.
8. Evidentiary provisions in connection with civil penalty orders.
9. Designated officers.
1 Interpretation in Schedule
In this Schedule, unless the context otherwise requires—
“approved”, in relation to a fiscal memory device, means such a device whose use is approved by the Authority,
having been sold for registered operators to use by or on behalf of a supplier approved by the Authority;
“approved fiscal memory device” means an approved electronic
device used to record sales of taxable supplies;
“citation clause”, in relation to a civil penalty order, is the part of the order in which the Reserve Bank names the
defaulter and cites the provision of this Act in respect of which the default was made or is alleged, together with (if
necessary) a brief statement of the facts constituting the default;
 “designated officer” means an employee or the Reserve Bank or other person designated and authorised by the
Governor of the Reserve Bank to undertake duties in connection with the implementation of this Schedule;
“fiscal tax invoice or receipt” means a tax invoice or receipt printed from an approved fiscal device used by a
registered operator;
“fiscalised electronic register” means an electronic sales register having such features as may be prescribed;
“penalty clause”, in relation to a civil penalty order, is the part of the order that fixes the penalty to be paid by the
defaulter, and “fixed penalty clause” and “cumulative penalty clause” shall be construed accordingly;
“remediation clause” in relation to a civil penalty order, is the part of the order that stipulates the remedial action
to be taken by the defaulter;
“tax invoice” means a fiscal tax invoice provided by a registered operator, and printed by a fiscalised electronic
register or fiscal memory device used by a registered operator for the purpose of section 20.
2 Power of Commissioner to issue civil penalty orders
(1) Where default is made in complying with any provision of this Act or of regulations or order made under
this Act for which a civil penalty is specified to be leviable, the Commissioner may, in addition to, and without
derogating from, any criminal or non-criminal penalty that maybe imposed by this Act or any other law for the
conduct constituting the default, serve upon the defaulter a civil penalty order specified in subparagraph (2), (4), (6)
or (8) or any combination of such orders as the provision in question may allow.
(2) A natural or legal person registered or required to be registered as an operator under this Act shall be guilty
of a civil default if he, she or it, being required to do so by this Act or any regulations made thereunder, fails to
acquire and install an electronic fiscal device for the recording of all transactions subject to tax under this Act.
(3) In the event of default in complying with subparagraph (2) the civil penalty shall provide for—
(a) the suspension of the operation of the civil penalty order for a period of 48 hours from the date of its service
to enable the alleged defaulter to show cause to the designated officer why the order should not have been
issued, that is to say, to show that the order was issued in error:
Provided that—
(i) If no such cause is shown within that period the order shall be deemed to have been issued with effect
from the beginning of such period
(ii) if within that period it is shown that the order was issued in error the designated officer shall withdraw
the order and make the appropriate notation of withdrawal inthe civil penalty register;
(b) a fixed penalty of one thousand United States dollars (or its equivalent in Zimbabwe dollars at the auction
rate of exchange that prevailed on the date of service of the order); and
(c) the suspension of the penalty imposed under paragraph (b)conditionally upon the defaulter taking the ap-
propriate remedial action, that is to say, installing the electronic fiscal device for the recording of all transactions
subject to tax under this Act, no later than ninety-six hours after the civil penalty is served on the defaulter;
(d) a cumulative penalty over a period not exceeding ninety-days—
(i) of twenty-five United States dollars (or its equivalent in Zimbabwe dollars at the auction rate of exchange
that prevailed on the date of service of the order) for each day (beginning on the day after the day in which
the 96-hour period for complying with the civil penalty order expired) during which the defaulter fails to
take the appropriate remedial action; and
(ii) if the fixed penalty referred to in paragraph (b) becomes payable because the defaulter fails timeously to
take the appropriate remedial action, twenty-five United States dollars (or its equivalent in Zimbabwe
dollars at the auction rate of exchange that prevailed on the date of service of the order) for each day
(beginning on the day after the day in which the 96-hour period for complying with the civil penalty order
expired) during which the defaulter fails to pay the fixed penalty or any outstanding amount thereof.
(4) A natural or legal person registered or required to be registered as an operator under this Act shall be guilty
of a civil default if he, she or it, being required by the Commissioner to interface with Fiscalisation Data Manage-
ment System, fails to do so within 96 hours from the service upon him, her or it of a civil penalty order to do so.
(5) In the event of default in complying with subparagraph (4), the civil penalty order shall provide for—
(a) the suspension of the operation of the civil penalty order for a period of 48 hours from the date of its service
to enable the alleged defaulter to show cause to the designated officer why the order should not have been
issued, that is to say, to show that the order was issued in error:
Provided that—
(i) if no such cause is shown within that period the order shall be deemed to have been issued with effect
from the beginning of such period;
(ii) if within that period it is shown that the order was issued in error the designated officer shall withdraw
the order and make the appropriate notation of withdrawal in the civil penalty register;
 (b) a cumulative penalty over a period not exceeding ninety days—
(i) of twenty-five United States dollars (or its equivalent in Zimbabwe dollars at the auction rate of exchange
that prevailed on the date of service of the order) for each day (beginning on the day after the day in which
the 96-hour period for complying with the civil penalty order expired) during which the defaulter fails to
take the appropriate remedial action; and
(ii) if the fixed penalty referred to in subparagraph (i) becomes payable because the defaulter fails timeously
to take the appropriate remedial action, twenty-five United States dollars (or its equivalent in Zimbabwe
dollars at the auction rate of exchange that prevailed on the date of service of the order) for each day
during which the defaulter fails to pay the first-mentioned cumulative penalty or any outstanding amount
thereof (the maximum period of ninety days for the payment of the first-and second-mentioned cumula-
tive penalties shall run concurrently).
(6) A natural or legal person registered or required to be registered as an operator under this Act shall be guilty
of a civil default if he, she or it, deliberately tampers with an electronic fiscal device with the result that it fails
faithfully to record any transactions subject to tax under this Act (for which purpose an allegation to that effect must
be supported by an affidavit sworn by or on behalf of a supplier of a electronic fiscal device that the device in
question was deliberately tampered with for that purpose, and such affidavit must be attached to the civil penalty
order served upon the defaulter).
(7) In the event of default in complying with subparagraph (6), the civil penalty order shall provide for—
(a) the suspension of the operation of the civil penalty order for a period of 48 hours from the date of its service
to enable the alleged defaulter to show cause to the designated officer why the order should not have been
issued, that is to say, to show that the order was issued in error:
Provided that if—
(i) no such cause is shown within that period the order shall be deemed to have been issued with effect
from the beginning of such period;
(ii) within that period it is shown that the order was issued in error the designated officer shall withdraw the
order and make the appropriate notation of withdrawal in the civil penalty register;
(iii) the designated officer is satisfied that the electronic fiscal device was not or cannot be shown to have
been deliberately falsified, the designated officer may instead issue a civil penalty order in terms of sub-
section (8), which shall have effect from the date of its service; and
(b) a fixed penalty of one thousand United States dollars (or its equivalent in Zimbabwe dollars at the auction
rate of exchange that prevailed on the date of service of the order); and
(c) the rectification or replacement of the falsified electronic fiscal device and the installing of the rectified or
replaced electronic fiscal device no later than ninety-six hours after the civil penalty is served on the de-
faulter; and
(d) a cumulative penalty over a period not exceeding ninety days—
(i) of fifty United States dollars (or its equivalent inZimbabwe dollars at the auction rate of exchange that
prevailed on the date of service of the order) for each day (beginning on the day after the day in which
the 96-hour period for complying with the civil penalty order expired) during which the defaulter fails to
take the appropriate remedial action; and
(ii) for as long as the fixed penalty or any part of it referred to in paragraph (b) remains unpaid, of fifty United
States dollars (or its equivalent in Zimbabwe dollars at the auction rate of exchange that prevailed on the
date of service of the order) for each day (beginning on the day after the day of the service of the civil
penalty order) during which the defaulter fails to pay the fixed penalty or any outstanding amount thereof;
(8) A natural or legal person registered or required to be registered as an operator under this Act shall be guilty
of a civil default if (in the absence of evidence of tampering as described in subparagraph (6)) he, she or it, fails to
rectify or replace a faulty electronic fiscal device (that is to say, one that does not faithfully record any transactions
subject to tax under this Act) within 96 hours from the service upon him, her or it of a civil penalty order to do so.
(9) In the event of default in complying with subparagraph (8), the civil penalty order shall provide for—
(a) the suspension of the operation of the civil penalty order for a period of 48 hours from the date of its service
to enable the alleged defaulter to show cause to the designated officer why the order should not have been
issued, that is to say, to show that the order was issued in error:
Provided that—
(i) if no such cause is shown within that period the order shall be deemed to have been issued with effect
from the beginning of such period;
(ii) if within that period it is shown that the order was issued in error the designated officer shall withdraw
the order and make the appropriate notation of withdrawal in the civil penalty register;
(a) a cumulative penalty over a period not exceeding ninety days —
 (i) of twenty-five United States dollars (or its equivalent in Zimbabwe dollars at the auction rate of exchange
that prevailed on the date of service of the order) for each day (beginning on the day after the day in which
the 96-hour period for complying with the civil penalty order expired) during which the defaulter fails to
take the appropriate remedial action; and
(ii) if the fixed penalty referred to in subparagraph (i) becomes payable because the defaulter fails timeously
to take the appropriate remedial action, twenty-five United States dollars (or its equivalent in Zimbabwe
dollars at the auction rate of exchange that prevailed on the date of service of the order) for each day
during which the defaulter fails to pay the first-mentioned cumulative penalty or any outstanding amount
thereof (the maximum period of ninety days for the payment of the first- and second-mentioned cumula-
tive penalties shall run concurrently).
3 Variation of certain penalties and limitation of multiple of penalties
A single civil penalty order may be served in respect of two or more defaults committed by the defaulter within
a single period not exceeding six months, but if the aggregate of such defaults results in the defaulter becoming
liable (either immediately or within seven days from the service of the civil penalty order) to a penalty or combined
penalties in excess of the equivalent of fifty thousand United States dollars, the Commissioner may select one or
any combination of those defaults which will not result in the defaulter becoming so liable, while reserving the right
to serve a second or further additional civil penalty orders in respect of the defaults not so selected if the defaulter
does not comply with the first civil penalty order.
4 Service and enforcement of civil penalties and destination of proceeds thereof
(1) References to the Commissioner serving upon a defaulter any civil penalty order in terms of this Act (or
serving upon an alleged defaulter a show cause notice referred to in paragraph 6 (“Additional due process require-
ments before service of certain civil penalty orders”), are to be interpreted as requiring the Commissioner to deliver
such order (or such notice) in writing to the defaulter (or alleged defaulter) concerned in any of the following ways—
(a) by registered post addressed to the defaulter’s (or alleged defaulter’s) principal office in Zimbabwe or other
place of business of the defaulter (or alleged defaulter); or
(b) by hand delivery to the director, manager, secretary or accounting officer of the defaulter (or alleged de-
faulter) in person (through a designated officer, or a police officer), or to a responsible individual at the place
of business of the defaulter; or
(c) by delivery through a commercial courier service to the defaulter’s (or alleged defaulter’s) principal office
in Zimbabwe or other place of business of the defaulter (or alleged defaulter); or
(d) by electronic mail or telefacsimile at the electronic mail or telefacsimile address furnished by the defaulter
(or alleged defaulter) to the Commissioner:
Provided that in this case a copy of the order or notice shall also be sent to the electronic mail or telefacsimile
address of the defaulter’s (or alleged defaulter’s) legal practitioner in Zimbabwe.
(2) The Commissioner shall not extend the period specified in a civil penalty order for compliance therewith
except upon good cause shown to him or her by the defaulter, and any extension of time so granted shall be noted
by the Commissioner in the civil penalty enforcement register referred to in paragraph 8 (“Evidentiary provisions
in connection with civil penalty orders”).
(3) If in this Act both the defaulting company and every officer of the company who is in default are said to be
liable to a civil penalty order, the Commissioner may—
(a) in the same civil penalty order, name the defaulting company and every officer concerned as being so lia-
ble separately, or issue separate civil penalty orders in respect of the defaulting company and each of the of-
ficers concerned;
(b) may choose to serve the order only upon the defaulting company if, in his or her opinion (which opinion
the Commissioner shall note in the civil penalty enforcement register referred to in paragraph 8, there may be
a substantial dispute of fact about the identity of the particular officer or officers who may be in default:
Provided that nothing in this section affects the default liability of officers of the company mentioned in sub-
paragraph (9).
(4) The Commissioner may, in the citation clause of a single civil penalty order, cite two or more defaults
relating to different provisions of this Act if the defaults in question—
(a) occurred concurrently or within a period not exceeding six months from the first default or defaults to the
last default or defaults; or
(b) arose in connection with the same set of facts.
(5) Where in this Act the same acts or omissions are liable to both criminal and civil penalty proceedings, the
Commissioner may serve a civil penalty order at any time before the commencement of the criminal proceedings in
relation to that default, that is to say at any time before—
(a) summons is issued to the accused person for the prosecution of the offence; or
 (b) a statement of the charge is lodged with the clerk of the magistrates court before which the accused is to be
tried, where the offence is to be tried summarily; or
(c) an indictment has been served upon the accused person, where the person is to be tried before the High
Court;
as the case may be, but may not serve any civil penalty order after the commencement of the criminal proceedings
until after those proceedings are concluded (the criminal proceedings are deemed forthis purpose to be concluded
even if they are appealed or taken on review) (For the avoidance of doubt it is declared that the acquittal of an
alleged defaulter in criminal proceedings does not excuse the defaulter from liability for civil penalty proceedings).
(6) Upon the expiry of the ninety-day period within which any civil penalty order of any category must be paid,
the defaulter shall be guilty of an offence and liable to a fine not exceeding level 6 or to imprisonment for a period
not exceeding one year or to both.
(7) The amount of any civil penalty shall—
(a) be payable to the Authority and shall form part of the funds of the Authority; and
(b) be a debt due to the Authority and shall be sued for in any proceedings in the name of the Authority in any
court of competent civil jurisdiction:
Provided that for this purpose, the court of the provincial magistrate for the mining province concerned shall
be deemed to have jurisdiction to hear the suit even if the monetary amount sought would otherwise exceed its
prescribed jurisdiction.
(8) Proceedings in a court for the recovery of a civil penaltyshall be deemed to be proceedings for the recovery
of a debt as if the defaulter had acknowledged the debt in writing.
(9) If the defaulter is a company, private business corporation or other body corporate, every officer of the
company, corporation or body corporate, mentioned in the civil penalty order by name or by office, is deemed to be
in default and any one of them can, on the basis of joint and several liability, be made by the Commissioner to pay
the civil penalty in the event that the company, corporation or body corporate does not pay.
(10) If the Authority in terms of subsection(7)(b) desires to institute proceedings to recover the amounts of two
or more civil penalties in any court of competent civil jurisdiction, it may, after notice to all interested parties, bring
a single action in relation to the recovery of those penalties if the orders relating to those penalties—
(a) were all served within the period of twelve months preceding the institution of the proceedings; and
(b) were served—
(i) on the same company or private business corporation; or
(ii) in relation to the same default or set of defaults, whether committed by the same company or private
business corporation or different companies or private business corporations; or
(iii) on two or more companies or private business corporations whose registered offices are in the same area
of jurisdiction of the court before which the proceedings are instituted.
(11) Unless the Authority has earlier recovered in civil court the amount outstanding under a civil penalty order,
a court convicting a person of an offence against subparagraph (6), may on its own motion or on the application of
the prosecutor and in addition to any penalty which it may impose give summary judgement in favour of the Au-
thority for the amount of any outstanding civil penalty due from the convicted defaulter.
5 Limitation on issuance and enforcement of civil penalty orders
(1) No civil penalty order may be issued more than twelve months from the date when the infringement or
alleged infringement occurred or ceased to occur.
(2)Any amount owing under a civil penalty order is a debt owed to the State for the purposes of section15(b) of
the Prescription Act [Chapter 8:11].
6 Additional due process requirements before service of certain civil penalty orders
(1) Except in relation to any civil penalty order which the Authority is satisfied that it does not involve any
substantive dispute of fact, the Authority must notify the alleged defaulter in writing of the Authority’s intention to
serve the civil penalty order (which notice shall hereafter be called a “show cause notice”) and the Authority’s
reasons for doing so and shall call upon the alleged defaulter to show cause within the period specified in the notice
(which period shall not be less than 48 hours or more than seven days from the date of service of the notice) why
the civil penalty order should not be served upon him or her, and, if the alleged defaulter—
(a) makes no representations thereto within the notice period, the Authority shall proceed to serve the civil
penalty order, or
(b) makes representations showing that the alleged default in question was not wilful or was due to circum-
stances beyond the alleged defaulter’s control or for any other reason specified in the civil penalty provision in
question, the Authority shall not proceed to serve the civil penalty order; or
(c) makes no representations of the kind referred to in paragraph (b) the Authority shall proceed to serve the
 civil penalty order.
(2) In addition, where it appears to the Authority from written representations received under subparagraph (1)
that there may be a material dispute of fact concerning the existence or any salient aspect of the alleged default, the
Authority must afford the alleged defaulter an opportunity to be heard by making oral representations before the
Authority, for which purpose the Authority shall have the same powers, rights and privileges as are conferred upon
a commissioner by the Commissions of Inquiry Act [Chapter 10:07], other than the power to order a person to be
detained in custody, and sections 9 to 13 and 15 to 19 of that Act shall apply with necessary changes in relation to
the hearing and determination before the Authority of the alleged default in question, and to any person summoned
to give evidence or giving evidence before the Commissioner or a designated officer.
(3) Any person who is aggrieved by a civil penalty order made after the making of representations in terms of
this section may appeal against the order to a judge of the High Court, and the judge may make such order as he or
she thinks fit:
Provided that the lodging of the appeal shall not of itself suspend the obligation of the defaulter to comply with
the civil penalty order.
7 Judicial review of civil penalty orders
If the Authority does not issue a show cause order under paragraph 6 before issuing and serving a civil penalty
order under paragraph 5. the defaulter or alleged defaulter may seek review of the Authority’s action by the High
Court, but the lodging of the application for review shall not of itself suspend the obligation of the defaulter to
comply with the civil penalty order.
8 Evidentiary provisions in connection with civil penalty orders
(1) For the purposes of this Schedule the Authority shall keep a civil penalty enforcement register wherein
shall be recorded—
(a) the date of service of every show cause notice, the name and the physical or registered office address of the
person upon whom it was served, the civil penalty provision in relation to which the alleged defaulter was
alleged to be in default, and whether or not the show cause notice was followed by the service of a civil penalty
order:
Provided that a record or an adequate summary of any representations made in response to a show cause notice
shall be made by way of an entry or cross-reference in, or annexure to, the register, and if recorded by way of
annexure or cross-reference, the representations must be preserved for a period of at least three years from the date
when they were made to the Authority;
(a) the date of service of every civil penalty order, the name and the physical or registered office address of
the person upon whom it was served, the civil penalty provision in relation to which the defaulter was in default,
and the date on which the civil penalty order was complied with or the penalty thereunder was recovered as the
case may be.
(2) Acopy of—
(a) any entry in the civil penalty enforcement register, and of any annexure thereto or record cross-referenced
therein, authenticated by the Authority as a true copy of the original, shall on its mere production in any civil
or criminal proceedings by any person, be prima facie proof of the contents therein; or
(b) any civil penalty order that has been served in terms of this Act, authenticated by the Authority as a true
copy of the original, shall on its mere production in any civil or criminal proceedings by any person, be prima
facie proof of the service of the order on the date stated therein upon the defaulter named therein, and of the
contents of the order.
9 Designated officers
(1) Any reference to the Authority in this Schedule shall be construed as a reference to a designated officer.
(2) The Commissioner shall furnish each designated officer with a certificate signed by or on behalf of the
Commissioner stating that he or she has been appointed as a designated officer for the purpose of this Schedule.
(3) A designated officer shall, on demand by any person affected by the exercise of the powers conferred upon
the Commissioner under this Schedule, exhibit the certificate issued to him or her in terms of subsection (2).
[Schedule inserted by s 22 of Act 13 of 2023]