The Zimbabwe Revenue Authority (ZIMRA) noticed that some businesses that are conducting business in multiple currencies are withholding and collecting VAT in multiple currencies. ZIMRA has clarified that businesses should remit VAT in the same currencies they collect the output tax in without converting the foreign currency to the Zimbabwean currency (Real Time Gross Settlement (RTGS) dollars).
As part of the clarifications, ZIMRA announced that beginning 22 February 2019 all VAT registered operators are required to comply with Statutory Instruments 33 and 32 of 2019. Of specific interest are the following requirements:
ZIMRA pays the VAT refunds in foreign currency where the registered operator can prove that the tax was paid in foreign currency.
Legislation has been put in place for the duty-free importation of religious audio and video material donated to and imported by religious organisations. For the materials to qualify for duty-free importation, they must be for free distribution to persons in need.
The customs duty rate for petrol was reduced from Zimbabwe RTGS dollar 2.31 per litre to Zimbabwe RTGS dollar 1.15 per litre and diesel from Zimbabwe RTGS dollar 2.05 per litre to Zimbabwe RTGS dollar 0.90 per litre effective from 21 May 2019.