Online Services - VAT
Valued Added Tax is the tax on spending on goods and services. From the perspective of the buyer, it is a tax on the purchase price. From that of the seller, it is a tax only on the value added to product, material or service. From an accounting point of view, by the stage of its manufacture or distribution. The manufacturer remits to ZIMRA the difference between these two amounts, and retains the rest for themselves to offset the taxes they had previously paid on the inputs.
When one registered operator supplies another registered operator with goods or services, the supplier of those goods or services will levy Value Added Tax (VAT). The VAT incurred by a registered operator is known as Input Tax.
When this registered operator in turn supplies goods or services to other persons (or traders), VAT must be included in the price charged for those goods or services. This is known as Output Tax. The difference between the output tax collected and input tax incurred for making taxable supplies is the amount of VAT payable to the Zimbabwe Revenue Authority or refundable from there.
