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Value Added Tax General Regulations 2003 (Statutory Instrument 273 of 2003)

Statutory Instrument 273 of 2003

Value Added Tax  General  Regulations 2003

SIs.273/2003, 281/ 2003, 106/2004, 117/2004, 165/2004, 194/2004, 201/2004,234/2004, 238/2004,47/2005,

53/2005, 120/2005, 150/2005, 3/2006, 2/2007, 175/2007, 215/2007., 110/2008, 156/2008, 157/2008, 9/2009, 41/2009

ARRANGEMENT OF REGULATIONS

PART I

PRELIMINARY Section

  1. Title and date of commencement.
  2. Prescribed forms.

PART II

VALUE-ADDED TAX ON SUPPLIES

  1. Registration of suppliers.

4A.   Display of certificate of registration.

4B.   Application for duplicate certificate of registration.

  1. Voluntary registration.
  2. Cancellation of registration.
  3. Change of status.
  4. Exempt supplies: Supply of certain goods or services.
  5. Exempt supplies: Certain goods imported into Zimbabwe.
  6. Zero rating: Direct exports.

11A. Zero rating: Indirect exports.

  1. Zero rating: Sale of going concern.
  2. Zero rating: Supply of goods for agricultural purposes, foodstuffs and goods for use by disabled persons.
  3. Zero rating: Services other than telecommunication services.
  4. Zero rating: Services paid for in foreign currency by persons not resident in Zimbabwe
  5. Zero rating: Production of documentary proofs.
  6. Accounting basis.
  7. Motor vehicles.
  8. Export processing zones.
  9. Interest on delayed refunds.
  10. Apportionment of tax.
  11. Tax invoices.

22A. Use of cash register.

  1. Requirements for a cash register.

PART IIA

DEFERMENT OFCOLLECTION OFVALUE ADDED TAX

23A. Deferment ofcollection of value added on capital goods. 23B. Deferment under certain conditions.

PART III

REMISSIONSREFUNDS AND RETURNS

  1. Remission or refund of tax on goods imported for diplomatic personnel, etc.
  2. Refund on goods for diplomatic personnel, etc.
  3. Collection of tax on imported services, etc.

PART IV

TRANSITIONALPROVISIONS

  1. Input tax credit and calculation of tax payable by new registrant.
  2. Claim of input tax credit in terms of section 15 of the Act.
  3. Claim of sales tax levied under the repealed Act.
  4. Liability for registration after thresholds altered under section 23(1)(a) of Act.

SCHEDULES

First Schedule: Exemption of Certain Goods or Services and Imports from Payment of Value-Added Tax.

Second Schedule: Zero Rated Goods.

Third Schedule: List of Value Added Tax Forms.

Fourth Schedule: Prescribed amounts. Fifth Schedule: Rate of interest.

IT is hereby notified that the Minister of Finance and Economic Development has, in terms of section seventy-eight of the Value Added Tax Act [Chapter 23:12], made the following regulations: — PART I

PRELIMINARY

                                          1.   Title and date of commencement

  • These regulations may be cited as the Value Added Tax (General) Regulations, 2003.
  • These regulations shall come into force from the date of commencement of the Value Added Tax Act [Chapter 23:12]

                                        2.   Interpretation

In these regulations—

“Authority” means the Zimbabwe Revenue Authority set up in terms of section 3 of the Revenue Authority Act [Chapter 23:11];

“Commissioner” means the Commissioner-General appointed in terms of section 19 of the Revenue Authority Act [Chapter 23:11];

“Customs tariff” means the customs tariff as defined in section 2 of the Customs and Excise Act [Chapter 23:02];

“form”—

  • means the appropriate form specified in the Third Schedule and prescribed by subsection (1) of section 3; and
  • may include the equivalent form prescribed in or used under the repealed regulations until stocks thereof are exhausted;

“tax” means tax payable in terms of section 6 of the Act.

                                                    3.   Prescribed forms

  • Any person transacting business with the Authority shall provide at his own expense all the relative forms, with the exception of the forms specified in the Third Schedule and numbered.
  • The form referred to in paragraph (a) of the definition of “form” in section 2 shall be the appropriate form obtainable from the office of the Zimbabwe Revenue Authority, Sixth Floor, Intermarket Building, corner of First Street and Kwame Nkrumah Avenue, Harare, or any office of the Authority and such form may be inspected at any such office free of charge.
  • No person other than the Authority or the Government Printer shall print or reproduce any form unless authorised by the Authority in writing.
  • Notwithstanding the definition of “form” in subsections (a) and (b) of section 2, the Commissioner may authorise the use of forms other than those prescribed for the various purposes specified in these regulations.

PART II

VALUE-ADDED TAX ON SUPPLIES

                                               4.   Registration of suppliers

(1) An application, in terms of section 23 of the Act, for a certificate of registration shall be made in form—

  • VAT 1 for the application for registration; or
  • VAT 2 in the case where the details of the spouse of a sole trader are required; or (c) VAT 3 in the case of particulars of officials of a partnership, company, trust, association.
  • Where separate trades are carried on by any registered operator or a trade is carried on by any registered operator in branches or divisions, the registered operator may apply in terms of section 51 of the Act to the Commissioner for any such separate trade, branch or division to be registered separately for the purposes of the Act and shall comply with the requirements of subsection (1).
  • The Commissioner shall, if he is satisfied that the registered operator’s total value of the taxable supplies within the period of twelve months is likely to exceed the amount specified in the Fourth Schedule and that the application is in order and that the applicant should be so registered, issue to the applicant, a certificate in form VAT 6.

4A. Display of certificate of registration.

  • A registered operator shall ensure that the original version of the certificate of registration is prominently displayed at all times upon the premises to which it relates .
  • Subsection (1) shall not apply in respect of any period during which the certificate of registration is necessarily removed from the premises concerned for the purposes of doing anything in terms of the Act or for any other lawful purpose the proof whereof, in any proceedings against any person for contravention of subsection (1) , shall lie upon that person.

[Section inserted by s.i. 106 of 2004]

4B. Application for duplicate certificate of registration.

  • An application from a registered operator for a duplicate certificate of registration to replace one which has been lost, destroyed or mutilated shall be made ,in writing , to the Commissioner.
  • If the Commissioner is satisfied that the registered operator’s application is in order and that the applicant should issued with a duplicate certificate of registration he shall, on the payment of the prescribed fee, if any, issue a duplicate certificate of registration.

Where the application in terms of subsection (1) concerns a certificate of registration which has been mutilated, that certificate of registration shall be surrendered to the Commissioner by the registered operator.

[Section inserted by s.i. 106 of 2004]

                                               5.   Voluntary registration

  • Any trader who intends to apply for registration in terms of subsection (3) of section 23 of the Act shall, before submitting his application, satisfy the Commissioner that he is eligible for registration.
  • An application for registration in terms of this section shall be accompanied with form VAT 1.

                                              6.   Cancellation of registration

Every registered operator who—

  • is deregistered by the Commissioner in terms of subsection (1) of section 24 of the Act shall be notified of the deregistration by the Commissioner; or
  • intends to have his registration cancelled may apply to the Commissioner to cancel his registration in form VAT 5;
  • ceases to trade in terms of subsection (3) of section 24 of the Act shall notify the Commissioner within twenty-one days of the date of such cessation in form VAT 5; and once the Commissioner is satisfied that the registered operator has complied with all his obligations as laid down in the Act and any other such conditions as he sees fit, he shall issue a notice of cancellation.

                                                    7.   Change of status

Subject to section 25 of the Act a registered operator shall, within twenty-one days of such change complete form VAT 4, highlighting the changed particulars and attach such necessary proof.

                                                      8.   Returns

  • A return in terms of subsection (1) of section 28 of the Act shall be furnished to the Commissioner in form VAT 7.
  • A return in terms of section 29 of the Act shall be furnished to the Commissioner in form VAT 8.

                                                                                   9.   Exempt supplies: Supply of certain goods or services

The goods or services in respect of which the exemption under paragraph (j) of section 11 of the Act shall apply, shall be as set forth in the First Schedule.

10. Exempt supplies: Certain goods imported into Zimbabwe

The goods in respect of which the exemption under subsection (3) of section 12 of the Act shall apply, shall be as set forth in the First Schedule.

Provided that for the purposes of Part II of that Schedule—

  • the exemption in respect of the importation into Zimbabwe of such goods as fall under items (n), (o), (p) and (q) of paragraph I of the said Part shall not apply if at the time of export of such goods the supply of those goods was—
    • charged with tax at the rate of zero per cent in terms of section 10 of the Act; or
    • before the fixed date and that supply would have been charged with tax at the rate of zero per cent in terms of section 10 of the Act, if the supply had taken place on or after the fixed date;
  • the exemption in respect of the importation of goods contemplated in items (p) and (r) of paragraph 1 of the said Part shall apply only to the extent of the value of the goods sent from Zimbabwe on the day they left Zimbabwe.

11. Zero rating: Direct exports

Subject to paragraph (a) of subsection (1) of section 10 of the Act where goods are consigned or delivered in terms of paragraphs (a) or (b) of subsection (1) of section 2 of the Act in the definition of “exported ” tax shall be charged at zero per centum.

11A.Zero rating: Indirect exports.

Subject to paragraph (a) of subsection (1) of section 10 of the Act where goods are consigned or delivered in terms of paragraph (d) of subsection (1) of section 2 of the Act in the definition of “exported ” tax shall be charged at zero per centum: Provided that—

  • registered operators seeking to benefit from zero rating of goods sold to non residents in terms of paragraph (d) of the definition of “exported”, shall satisfy the Commissioner that they will comply with all exchange control regulations relating to export of goods;
  • where the Commissioner is satisfied that the goods referred to in paragraph (d) of the definition of “exported”, were not taken out of Zimbabwe, the seller of such goods shall become liable to the tax calculated at the prescribed rate; (c) the tax shall—
    • be debts due by the seller to the State; and
    • be sued for and recovered by action by the Commissioner in any court of competent jurisdiction.

[Section inserted by s.i. 201 of 2004]

12. Zero rating: Sale of going concern

Subject to proviso (ii) of paragraph (e) of subsection (1) of section 10 of the Act where the trade or part of a trade, as the case may be, is disposed of as a going concern and 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, be taxed at zero per centum if the sale represents the disposal of at least fifty-one per centum of the trade or part of a trade.

13. Zero rating: Supply of goods for agricultural purposes, foodstuffs and goods for use by disabled persons

Subject to paragraph (g) of subsection (1) of section 10 of the Act agricultural goods, foodstuffs and goods for use by disabled persons in respect of the supply of which the rate of zero per centum shall apply shall be as set forth in the Second Schedule.

14. Zero rating: Services other than telecommunication services

Subject to paragraph (k) of subsection (2) of section 10 of the Act any services, not being telecommunications services as defined in terms of section 2 of the Postal and Telecommunications Act [Chapter 12:05], and are physically rendered elsewhere other than in Zimbabwe, supplied to any person who utilises such services in Zimbabwe shall be charged at zero per centum.

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