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Zimbabwe Proposes VAT Hike and New Digital Services Withholding Tax in 2026 Budget

  • The general VAT rate in Zimbabwe is proposed to increase from 15% to 15.5% starting January 1, 2026.
  • A new Digital Services Withholding Tax will be introduced, replacing VAT on imported services.
  • This tax will apply to payments made to foreign digital platforms, including e-hailing and online content-sharing services, and will be withheld by intermediary financial institutions.
  • The 2026 National Budget containing these changes was submitted to Parliament on November 27, 2025.
  • E-commerce vendors and digital service providers, both domestic and foreign, should closely monitor these proposed changes.

Source: 1stopvat.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.



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