Business / Economy
How to register VAT with Zimra
22 Dec 2011 at 00:34hrs | Views
Only operators registered for VAT purposes may charge VAT on the supply of goods and services unless the goods and services are exempt.
For a trader to charge VAT on the supply of goods and services, one has to register with Zimra first.
How to register for VAT
l Application for registration as a registered operator is done on Form VAT1.
l Details of sole trader's spouse are submitted on Form VAT 2.
l Particulars of officials of a partnership, company, trust or association are submitted on Form VAT 3.
l Separate trade, branches or divisions do not need to register separately as the VAT is accounted for by the main branch.
Compulsory Registration
A trader is liable to register for VAT purposes as a registered operator if the value of taxable supplies exceeds or is expected to exceed US$60 000 within a period of 12 months. If one is not registered, one cannot charge VAT on sales nor recover VAT on purchases. Also note that it is an offence to fail to register when you meet the set threshold or to charge VAT when you are not registered.
Voluntary Registration
However, depending on the supplies one is making, one may wish to consider registering for VAT voluntarily even though not meeting the specified threshold. One should satisfy the Commissioner that one is eligible for registration by meeting the following requirements:
l That the person is carrying on or intends to carry on any trade from a specified date.
l That the person has a fixed place of abode or business.
l That proper accounting records relating to any trade carried on by him are kept.
l Submission of proof of a bank account
Requirements after Registration
All registered retail operators under category "C" shall record taxable transactions by using a fiscalised electronic register, or a non-fiscalised electronic register together with a fiscal memory device. All other category "C" registered operators shall use an electronic signature device or a fiscalised electronic register or a non-fiscalised electronic register together with a fiscal memory device.
This is also referred to as fiscalisation. The requirement to use fiscalised devices applies only to registered operators whose annual turnover is at least US$240 000 per annum.
Registered operators that are already in category "C" but whose annual turnover is below US$240 000 are not obliged to acquire the fiscalised electronic registers or other devices.
All the fiscalised electronic registers or devices are to be registered with the Commissioner General before use. All Fiscalised Electronic Registers and Fiscal Memory Devices should be acquired from approved suppliers only.
A registered operator shall issue a tax invoice in case of goods supplied to another registered operator every time a transaction takes place and to any other recipient upon request the recipient.
All other registered operators other than those in category "C" are also required to use cash registers for the purposes of accounting for value added tax. Such cash registers should be able to:
l Print sales slips for the customer with a back-up master audit roll.
l Store in a permanent manner all entries in English language, for a period of at least six years.
l Read, display and print the sales for the day as and when required and keep details of such readings and the final daily readings of sales which should include previous readings of the day done.
l Split sales into tax liability categories specifying that the sale was either exempt from tax or charged at zero rate or at the standard rate.
l Display, visually, to the customer of the entries being made and produce till slips detailing date and time of transaction, full names and VAT number, total value of sales before payment of tax, total value of the sales and tax charged from the customer
A registered operator shall ensure that the original version of the certificate of registration is prominently displayed at all times on the premises to which it relates.
Cancellation of Registration
Deregistration can be at the Commissioner's discretion, or, on voluntary application or, on cessation of trade notice being given within 21 days of the date of such cessation in Form VAT 5. When the Commissioner is satisfied that all obligations have been met in full, he shall issue a notice of cancellation.
For further information, please contact your nearest Zimra office.
l Article submitted by Zimra's Legal and Corporate Services Division. Their contact details are as follows:
Zimbabwe Revenue Authority
Legal and Corporate Services Division
6th Floor, ZB Centre
Corner First Street/Kwame Nkrumah Avenue
PO Box 4360, Harare; Fax: 04 - 774087
Tel (Head Office): 04 - 758891/5; 790813; 790814; 781345; 751624; 752731; 798879
E-Mail: pr@zimra.co.zw; webmaster@zimra.co.zw
For a trader to charge VAT on the supply of goods and services, one has to register with Zimra first.
How to register for VAT
l Application for registration as a registered operator is done on Form VAT1.
l Details of sole trader's spouse are submitted on Form VAT 2.
l Particulars of officials of a partnership, company, trust or association are submitted on Form VAT 3.
l Separate trade, branches or divisions do not need to register separately as the VAT is accounted for by the main branch.
Compulsory Registration
A trader is liable to register for VAT purposes as a registered operator if the value of taxable supplies exceeds or is expected to exceed US$60 000 within a period of 12 months. If one is not registered, one cannot charge VAT on sales nor recover VAT on purchases. Also note that it is an offence to fail to register when you meet the set threshold or to charge VAT when you are not registered.
Voluntary Registration
However, depending on the supplies one is making, one may wish to consider registering for VAT voluntarily even though not meeting the specified threshold. One should satisfy the Commissioner that one is eligible for registration by meeting the following requirements:
l That the person is carrying on or intends to carry on any trade from a specified date.
l That the person has a fixed place of abode or business.
l That proper accounting records relating to any trade carried on by him are kept.
l Submission of proof of a bank account
Requirements after Registration
All registered retail operators under category "C" shall record taxable transactions by using a fiscalised electronic register, or a non-fiscalised electronic register together with a fiscal memory device. All other category "C" registered operators shall use an electronic signature device or a fiscalised electronic register or a non-fiscalised electronic register together with a fiscal memory device.
This is also referred to as fiscalisation. The requirement to use fiscalised devices applies only to registered operators whose annual turnover is at least US$240 000 per annum.
All the fiscalised electronic registers or devices are to be registered with the Commissioner General before use. All Fiscalised Electronic Registers and Fiscal Memory Devices should be acquired from approved suppliers only.
A registered operator shall issue a tax invoice in case of goods supplied to another registered operator every time a transaction takes place and to any other recipient upon request the recipient.
All other registered operators other than those in category "C" are also required to use cash registers for the purposes of accounting for value added tax. Such cash registers should be able to:
l Print sales slips for the customer with a back-up master audit roll.
l Store in a permanent manner all entries in English language, for a period of at least six years.
l Read, display and print the sales for the day as and when required and keep details of such readings and the final daily readings of sales which should include previous readings of the day done.
l Split sales into tax liability categories specifying that the sale was either exempt from tax or charged at zero rate or at the standard rate.
l Display, visually, to the customer of the entries being made and produce till slips detailing date and time of transaction, full names and VAT number, total value of sales before payment of tax, total value of the sales and tax charged from the customer
A registered operator shall ensure that the original version of the certificate of registration is prominently displayed at all times on the premises to which it relates.
Cancellation of Registration
Deregistration can be at the Commissioner's discretion, or, on voluntary application or, on cessation of trade notice being given within 21 days of the date of such cessation in Form VAT 5. When the Commissioner is satisfied that all obligations have been met in full, he shall issue a notice of cancellation.
For further information, please contact your nearest Zimra office.
l Article submitted by Zimra's Legal and Corporate Services Division. Their contact details are as follows:
Zimbabwe Revenue Authority
Legal and Corporate Services Division
6th Floor, ZB Centre
Corner First Street/Kwame Nkrumah Avenue
PO Box 4360, Harare; Fax: 04 - 774087
Tel (Head Office): 04 - 758891/5; 790813; 790814; 781345; 751624; 752731; 798879
E-Mail: pr@zimra.co.zw; webmaster@zimra.co.zw
Source - Zimra
