VAT Registration in Zimbabwe: The US$25,000 Threshold Explained

Value Added Tax is administered by ZIMRA under the VAT Act. Whether you must register depends on your turnover — and getting it wrong in either direction is costly. Here is how it works in 2026.

When registration is compulsory

You must register for VAT if your taxable supplies exceed, or are likely to exceed, US$25,000 (or the ZiG equivalent) in any 12-month period. This threshold has applied since 1 January 2024. Registration takes effect from the first day of the month after you reach the threshold.

Businesses that only make exempt supplies, or that stay below the threshold, are not required to register.

Voluntary registration

Below the threshold you may be able to register voluntarily, subject to the minimum turnover set by the Commissioner. It can make sense if your customers are VAT-registered businesses that want to claim input tax, or if you have significant VAT on your own purchases.

The VAT rate

Type of supply	Rate
Standard-rated supplies (from 1 January 2026)	15.5%
Zero-rated supplies, mainly exports	0%
Exempt supplies	No VAT charged, no input tax claimed

The standard rate rose from 15% to 15.5% on 1 January 2026.

Your obligations once registered

• Submit VAT returns online on TaRMS — usually monthly or every two months, as ZIMRA directs
• Pay VAT by the 25th of the month after the end of the tax period
• Record sales electronically under the fiscalisation rules
• Keep accounting records for at least six years
• Tell ZIMRA when your business details change

A worked example

Say your business makes about US$2,500 of taxable sales a month. Over 12 months that’s around US$30,000 — above the US$25,000 threshold. You would need to register, and the registration takes effect from the first day of the month after you cross the line. Watch the rolling 12-month total, not just the calendar year.

Input tax in plain terms

Once registered, you charge VAT on your sales (output tax) and can generally claim back the VAT you paid on business purchases (input tax), provided you hold valid tax invoices. Each period you pay ZIMRA the difference — or claim a refund if input tax is higher.

Fiscalisation

VAT-registered businesses must record transactions electronically using fiscal devices or systems that meet ZIMRA’s requirements. Build this into your setup before you start issuing VAT invoices.

Common mistakes

• Charging VAT before you’re registered. Only registered operators may charge VAT.
• Waiting too long to register. You can end up owing VAT you never collected from customers.
• Missing the 25th. Late payment attracts penalties and interest — and blocks your tax clearance.
• Poor records. Keep invoices and records for at least six years.

This guide is general information, not legal or tax advice. Rules and fees change — confirm the current position with the relevant authority or ask us before you act.