All registered operators who not properly fiscalised will not be issued with a tax clearance certificate for 2021, government has said.
Speaking during dinner at Institute of Chartered Secretaries and Administrators annual conference on November 26 in Nyanga, ZIMRA Commissioner General Faith Mazani said errant businesses are not recording transactions being tendered for in foreign currency.
Where transactions have been recorded, part or all the foreign currency tendered is not being declared for tax purposes.
“We have therefore thought it prudent, as ZIMRA tonight, to emphasize on the need for business to ensure that in all instances documents recording sales (Invoices, Tax Invoices, Till Slips, Receipts or other documents recording sales) are issued to the customers in the currency of transaction,” Mazani said.
She added “fiscalised registered operators are required to produce fiscalised documents. iii. Where a sale is made in Zimbabwe dollars, the invoices/till slips/receipts recording the sale must be issued in Zimbabwe dollar.”
Where a sale is made in foreign currency, the invoices/till slips/receipts recording the sale must be issued in foreign currency, Mazani added.
Where a sale is made in parts of Zimbabwe dollars and foreign currency the invoices/till slips/receipts must reflect such currency details.
On areas of non-compliance clients were encouraged to come forward and make voluntary disclosures.
“Today in his budget statement the Minister of Finance and Economic Development reiterate the concern for noncompliance with the law of paying taxes in the currency of trade,” Mazani said.
“He has therefore announced more stringent measures in this respect – all registered operators who not properly fiscalised will not be issued with a tax clearance certificate for 2021. Very soon, ZIMRA will also roll out a campaign that encourages members of the public to insist on being issued invoices, tax invoices, receipts for business transactions done reflecting the correct currency of transaction.”
Where sellers issue discounts to their customers in either ZWL$ or foreign currency, they must issue credit and or debit notes to correctly record the changes in currency of trade, ZIMRA said.
On 17 June 2020, the Reserve Bank Governor announced the dual pricing system, wherein businesses can now accept payments in foreign currency.
The announcement was followed by the gazetting of Statutory Instrument 185 of 2020 as the Exchange Control (Exclusive Use of Zimbabwe Dollar for Domestic Transactions) (Amendment) Regulations, 2020 (No. 3).
Meanwhile, tax audits focused on monitoring of tax payments in foreign
currency are currently ongoing.
Detected noncompliance will be sanctioned.