Tax rate by region Zimbabwe

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The information provided on this page is intended for general informative purposes only. It should not be interpreted as tax advice, nor is it meant to be. For advice on your particular tax responsibilities, consult with an experienced tax expert. PayPro Global does not assume any responsibility for any action taken or not taken based on the information presented here.

Zimbabwe applies a Value Added Tax (VAT) administered by the Zimbabwe Revenue Authority (ZIMRA). Under major fiscal restructuring introduced via the 2026 Finance Act, the general VAT rate has been increased from 15% to 15.5%.

For the cross-border digital economy, non-resident suppliers of software, streaming, cloud computing, and automated electronic services must register for local VAT once their annual revenue from services consumed in Zimbabwe exceeds USD 25,000. To ensure robust enforcement, ZIMRA implemented a dual-track Digital Services Withholding Tax (DSWT) mechanism managed directly by local financial intermediaries and payment platforms.

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Zimbabwe

Zimbabwe applies a Value Added Tax (VAT). General VAT rate is 15%. Non-resident suppliers of digital services with annual turnover from services consumed in Zimbabwe exceeding USD 25,000 must register for VAT and comply with fiscalisation requirements. 

Official government link: Zimbabwe Revenue Authority (ZIMRA)

15.00%

E-products and services VAT/Sales tax rate

Tax applicable for

B2B and B2C

Reverse charge mechanism for B2B sales

Yes

Tax ID validation required

Yes

When do you have to register

After reaching ZWD 1 million in annual sales

Online registration possible

Yes 

Local representative needed

Mandatory

Registration procedure

Register with ZIMRA; for non-resident digital services, comply with fiscalisation requirements; intermediaries withhold 15.5% (or 3/23 tax fraction) effective 1 January 2026

List of digital and electronic services liable for tax

Digital services

Registration threshold

ZWD 1 million

Filing interval

Monthly

Filing deadline

25th day of the month following the reporting period

E-invoicing requirements

Yes

Record keeping

6 years 

How-To Guides: Zimbabwe SaaS VAT

Step: 1 Threshold

Effective January 1, 2020, Zimbabwe requires non-resident vendors of digital services to customers (B2C and B2B) in Zimbabwe to register for and collect VAT if their sales exceed ZWD 1 million.

Step: 2 Business Registration

Foreign entities must register with the Zimbabwe Revenue Authority (ZIMRA). A local fiscal representative is typically required for non-residents.

Step: 3 TIN/VAT Number

Upon registration, you will be issued a Business Partner (BP) Number (TIN) which is used for all tax purposes.

Step: 1 Standard Rate

The standard rate in Zimbabwe is 15%.

Step: 2 Rate Formula

To calculate your tax amounts, use the following formula:

 

Tax Amount = Net Price x 15%

 

 

Step: 3 Reverse Charge (B2B)

Zimbabwe historically applied VAT on Imported Services (reverse charge). However, for digital services, non-resident suppliers exceeding the registration threshold must register and charge VAT directly on both B2C and B2B supplies.

 

Reverse charge applies only in limited cases where the supplier is not VAT-registered in Zimbabwe or where the service falls outside digital services rules.

 

Under Public Notice 05 of 2026, intermediaries must withhold VAT on payments to foreign suppliers, with different rates depending on whether the supplier is VAT-registered.

Step: 1 Selling B2C

You must charge 15.5% VAT on sales to Zimbabwean private consumers once registered.

Step: 2 Selling B2B

Do not charge VAT if the buyer is a registered business. The buyer is responsible for the “VAT on Imported Services.” You should validate the buyer’s Tax Identification Number.

Step: 3 Invoice Requirements

Tax invoices must contain:

 

• The words “Tax Invoice” in a prominent place
• Name, address, and VAT number of the supplier
• Name and address of the recipient
• Individual serialized number and date
• Description of goods/services
• Value of the supply, VAT amount, and total amount
• Currency used

Step: 1 Filing Interval

Standard filing is Monthly (Category C) for most large taxpayers, or Bi-monthly (Category A/B) for smaller entities.

Step: 2 Filing Deadline

VAT returns must be filed and payment made by the 25th of the month following the end of the tax period.

Step: 3 Submission

File online via the ZIMRA e-Services portal. Payments must be remitted in the currency of the transaction (e.g., if you sell in USD, you pay VAT in USD).

Step: 4 Record Keeping

Records must be kept for a minimum of 6 years in English.

PayPro Global Solution: Simplified Registration & Fiscal Representation

Navigating Zimbabwe’s VAT registration and fiscal representation can be daunting. PayPro Global acts as your Merchant of Record, handling these complexities, including VAT registration and fiscal representation where needed, so you can focus on your business.

Learn more about our MoR services.

FAQ

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