The Zimbabwean tax system has been impacted by currency changes introduced in February 2019 by Statutory Instrument 33 of 2019. In 2016 when the bond note was introduced as a surrogate currency it carried the same value as the United States Dollar. Indications that the economic was reeling from currency started kicking in November 2018 when the Minister gave a directive to banks to separate the RTGS Accounts from the Nostro Foreign Currency Accounts. This was immediately followed up by a moneta ...
Sale of motor vehicles by employers to employees constrained by the tax burden
The acquisition of a motor vehicle by an employee from employer at below market value of the vehicle represents a taxable benefit for to the employee. The taxable benefit to the employee is the difference between the market value of the motor vehicle at the time of sell to the employee and the cost at which the employee acquired the motor vehicle. In determining the market value of the vehicle the Commissioner will have regard to the valuation from a valuer prescribed by him in Gazette or motor ...
Claims of VAT on imported services by registered operators
Prior to 2019, only persons who were not VAT registered operators and those consuming or utilising imported services to produce exempt supplies would bear the burden of VAT on imported services. This changed with effect from 1 January 2019 when the government extended the tax burden to all importers of services notwithstanding some may be VAT registered operators. The Finance Act 3 of 2019, has restored the position prior to January 2019 by ensuring VAT registered operators do not suffer the bu ...
Caught up in the dilemma of mixing VAT rates
As indicated in one of our previous articles, a decrease or increase in VAT rate triggers a variation in the time of supply rules in order to accommodate pipeline transactions. Such rules supersede the normal time of supply rules. Goods will be deemed supplied (provided) when they are delivered, in the case of services when they are rendered and for supplies such as rental agreements (operating lease) etc supply takes place when the recipient takes possession/ occupation thereof. Therefore if d ...