Only licensed traders can purchase from manufacturers in Zimbabwe

The Zimbabwe Revenue Authority (Zimra) said on Wednesday that only licensed and tax-compliant traders can purchase from manufacturers and wholesalers in a bid to encourage tax compliance and bolster government revenue.

Wholesalers are allowed to purchase from manufacturers if they possess a wholesale license, are registered for Value Added Tax (VAT), and have a valid tax clearance certificate, said Zimra in a public notice.

For retailers to be eligible to purchase from wholesalers, they must have a retail license, be registered for VAT and have a current tax clearance certificate, Zimra said.

For retailers not registered for VAT, informal traders and individuals, purchases from the same wholesaler should not exceed 1,000 U.S. dollars in a period of at least 30 days, it said, adding that informal traders are encouraged to register with Zimra and be tax-compliant.

Customers often prefer purchasing from informal traders who offer lower prices compared to formal supermarkets due to exchange rate distortions in Zimbabwe. This preference stems from the fact that informal traders typically accept U.S. dollars and are not compliant with tax regulations, among other reasons.