VATupdate

VAT rates in Zimbabwe

Quick overview

Standard Rate Reduced Rate Other Rates
14.5% N/A Zero-rated and exempt

The local name for VAT in Zimbabwe is Value-added tax (VAT).

There is basically 1 VAT rate in Zimbabwe:

  • Standard VAT rate is 14.5%

Recent developments

For more information about (recent) rate change developments in Zimbabwe, please click HERE.

Standard rate: 14.5%

This rate applies for all transactions that take place in Zimbabwe, unless an exception applies (such as a reduced rate, the zero rate or an exemption, or a reason to treat the transaction as outside scope of VAT).

Zero rate (0%)

Examples of goods and services taxable at 0%, with the right to deduct VAT

  • Exports of goods and services that would otherwise be standard rated. This includes exports of financial services other than short-term insurance.
  • International transport of goods and services
  • Sales of businesses as going concerns to registered persons
  • Gold sales to the central bank
  • Services supplied outside Zimbabwe to foreign head offices by Zimbabwean branches or to nonresident persons that are outside Zimbabwe when they are rendered
  • Tourism-related services (other than accommodation) rendered by designated tourist facilities, such as hotels, tour operators and car-hire companies
  • Intellectual property rights for use outside Zimbabwe
  • Certain foodstuffs except rice, margarine, cereals, mahewu, pork, beef, fish, chicken and potatoes, which are now exempt
  • Supply of domestic electricity
  • Certain goods used for agricultural purposes, such as animal feed, fertilizers, seed, animal remedies, pesticides, plants, tractors and, when exported, specified agricultural implements
  • Prescription medicines
  • Building bricks
  • Goods used by disabled persons
  • Fixed charges on commercial and domestic electricity
  • Supply of pipeline transportation services
  • Livestock

Examples of exempt supplies of goods and services, without the right to deduct VAT

  • Localy supplied Financial services, excluding the supply of short-term insurance by insurance agents or brokers
  • Medical services
  • Educational services by institutions registered under the ministry of education or higher education
  • Transport of fare-paying passengers by railway or road
  • Supplies of donated goods or services by nonprofit (charitable) bodies
  • Supplies of immovable property located outside Zimbabwe
  • Rental of residential accommodation
  • Staff accommodation
  • Water supplied through a pipe for domestic use
  • Owners’ rates charged by a local authority (a levy charged by a local authority based on the value of property)
  • Commission charges on tobacco sales on auction floors, Tobacco supplied on auction floors, Sale and import of leaf tobacco
  • Petroleum oils
  • Revenue arising from the operation of a temporary casino license in accordance with the terms of the lotteries and gaming act
  • Protective farming clothing, including gumboots, raincoats and gloves used for agricultural purposes
  • Eggs, vegetables, fruits, rice, margarine, lactose and mahewu (including cereals, pork, beef, fish, chicken and potatoes, as explained above)

 

A global VAT/GST rate overview can be found here (note this is a work in progress).

This post was last updated on October 6, 2021.

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