1. Introduction
Every business in Zimbabwe that reaches a certain level of turnover is required by law to register for Value Added Tax (VAT) with the Zimbabwe Revenue Authority (ZIMRA). VAT is one of the main sources of government revenue and applies to the supply of most goods and services within the country.
For business owners, understanding how VAT registration works is critical for legal compliance and efficient tax management. Failure to register on time can lead to penalties, backdated tax assessments, and reputational risks.
This article provides a step-by-step guide to ZIMRA VAT registration — explaining who should register, what documents are required, and how to use the ZIMRA e-Services platform to complete the process online.
2. What is VAT and Who Should Register?
Value Added Tax (VAT) is a consumption tax charged on most goods and services sold or imported into Zimbabwe. Businesses that collect VAT must remit it to ZIMRA, while those that incur VAT on purchases can claim input tax credits.
According to the Zimbabwe VAT Act (Chapter 23:12), any person or entity that carries out taxable business activities and meets the following criteria must register for VAT:
- Has an annual taxable turnover exceeding ZWL equivalent of USD 40,000 (subject to periodic review by ZIMRA).
- Intends to start a business expected to exceed that threshold in the next 12 months.
- Wishes to voluntarily register for VAT even before reaching the threshold (commonly done to enhance business credibility or trade with VAT-registered clients).
3. Benefits of Registering for VAT
VAT registration comes with several advantages for compliant businesses:
- Legitimacy: Enhances your business reputation and credibility with clients and suppliers.
- Input Tax Credit: Allows you to recover VAT paid on business purchases.
- Eligibility for Contracts: Many corporate and government tenders require VAT compliance.
- Access to Foreign Trade: Registered companies can reclaim VAT on imports and exports.
- Compliance and Peace of Mind: Avoid penalties or disruptions from unregistered trading.
4. Key Requirements for VAT Registration
Before applying for VAT registration, ensure your business meets the following requirements and has all necessary documentation ready.
a. Business Prerequisites
- The business must already be registered with the Registrar of Companies or as a Private Business Corporation (PBC).
- The business should already have a ZIMRA Business Partner Number (BP Number), obtained during income tax registration.
- The business must have an operational bank account and fixed business premises.
b. Required Documents
- Certificate of Incorporation or PBC Certificate.
- CR6 (Registered Office Address) and CR14 (Director Details) or equivalent PBC forms.
- Company tax registration documents (BP Number confirmation letter).
- Copy of lease agreement or proof of business premises ownership.
- Bank statement confirming active business transactions.
- Utility bill (to verify business location).
- National ID copies of directors or members.
- Partnership or shareholder agreements (if applicable).
- Projected income statement or business plan (for voluntary registrants).
Having all these documents ready will make the registration process smoother and faster.
5. Step-by-Step VAT Registration Process
ZIMRA allows businesses to register for VAT both physically at their nearest tax office or digitally using the ZIMRA e-Services platform. Below is a step-by-step overview of both methods.
Step 1: Obtain a Business Partner (BP) Number
If you don’t already have one, your first step is to register your business with ZIMRA to obtain a Business Partner Number. This is your tax identification number and is mandatory before VAT registration.
You can apply for a BP number online via ZIMRA e-Services or visit your nearest ZIMRA office with your company registration documents.
Step 2: Log Into the ZIMRA e-Services Platform
Go to the ZIMRA e-Services website and create an online account if you don’t already have one. Once registered, log in using your BP Number and password.
Step 3: Complete the VAT Registration Form (REV 1)
Within the platform, navigate to the VAT registration section and fill in the Form REV 1, providing:
- Business name and contact details.
- Nature of business activities.
- Estimated annual turnover.
- Details of directors or partners.
- Banking and accounting details.
Ensure all information is accurate and up-to-date. Errors or omissions may delay approval.
Step 4: Upload Supporting Documents
Scan and upload all required documents in PDF format (see section 4b above). Make sure each file is clearly labeled and legible.
Step 5: Submit Application
After reviewing your form and attachments, submit your VAT registration request through the e-Services portal. ZIMRA will issue an acknowledgment of receipt.
Step 6: Verification and Inspection
ZIMRA may conduct a verification visit to confirm your business address and operational status. This step ensures that the business is genuine and actively trading. You will be contacted in advance if an inspection is required.
Step 7: Approval and VAT Number Issuance
Once approved, ZIMRA will issue a VAT Registration Certificate and assign your business a VAT Number, which must appear on all your invoices and official documents.
You can download and print your certificate directly from the e-Services portal or collect it from your local ZIMRA office.
6. Post-Registration Obligations
After registration, your business will be recognized as a VAT-registered operator and must comply with ongoing obligations, including:
a. Charging VAT on Sales You must start charging VAT (usually at 15%) on all taxable goods and services you supply.
b. Issuing Tax Invoices Every VAT-registered business must issue valid Tax Invoices containing the VAT Number, date, amount, and tax breakdown for every transaction.
c. Filing VAT Returns You are required to submit VAT returns every month or quarter (depending on your assigned tax period). Returns and payments are made electronically via ZIMRA e-Services.
d. Record Keeping Keep all VAT records — invoices, receipts, and returns — for at least six years. ZIMRA may request them during audits or reviews.
e. Remitting VAT Ensure all VAT collected from customers is remitted to ZIMRA by the due date to avoid interest and penalties.
7. Common Mistakes to Avoid During VAT Registration
- Providing inconsistent business information — All details must match company registration and tax records.
- Failing to attach key documents — Missing CR14s or bank statements can delay approval.
- Using inactive business premises — ZIMRA must verify your operational address.
- Late filing of VAT returns — This attracts penalties and loss of credibility.
- Not updating changes — Always inform ZIMRA of changes in directors, address, or business structure.
8. Voluntary VAT Registration — When It Makes Sense
Even if your business turnover is below the registration threshold, voluntary registration can be beneficial if:
- You supply goods or services to VAT-registered entities.
- You want to recover input tax on start-up costs.
- You plan to scale your business rapidly or attract corporate clients.
However, once voluntarily registered, you are bound by all VAT obligations and reporting rules.
9. Deregistration and Changes
If your business closes, changes ownership, or falls below the VAT threshold, you can apply for VAT deregistration. This process also takes place through the ZIMRA e-Services portal and requires submission of final VAT returns and clearance certificates.
10. Conclusion
Registering for VAT with ZIMRA is a crucial step in formalizing your business and ensuring compliance with Zimbabwean tax laws. The process is straightforward if you understand the requirements and prepare your documents properly.
Through ZIMRA’s e-Services platform, VAT registration has become faster, more transparent, and accessible to all business owners.
By staying compliant, you not only avoid penalties but also open doors to larger contracts, partnerships, and sustainable growth opportunities.
