Foreign providers of electronic or digital B2B and B2C VAT obligations
Zimbabwe imposed Value Added Tax on digital and broadcast services provided by non-resident providers or marketplaces to its consumers and businesses from 1 January 2020. This requires a VAT registration once over the VAT registration threshold, with the appointment of a resident Fiscal Representative.
Barbados requires providers of B2B digital services to charge VAT as well as B2C.
The current VAT rate in Zimbabwe is 14.5%. VAT Calc’s global VAT and GST on digital services blog keeps a live update on how countries are imposing indirect taxes on non-resident providers and electronic marketplaces.
What digital services are subject to Zimbabwe VAT?
Income from the following services provided from aboard are liable to VAT:
- Broadcast TV and radio
- Electronically provided ecommerce
This applies to the provider and any facilitating marketplace on similar electronic platform.
VAT registrations and compliance
There is VAT registration threshold of ZWL 4.8 million. Once over this, non-residents should register with the Zimbabwe Revenue Authority.
Once VAT registered, the typical requirement is for monthly returns. These should be electroically filed by the 25th of the following month, and any VAT due settled at the same time.
Where a non-resident has not registered or appointed a Fiscal Representative, the B2B customer becomes responsible for VAT withholding. They may do this via their own VAT return.
