Quick overview
| Standard Rate | Reduced Rate | Other Rates |
| 14.5% | N/A | Zero-rated and exempt |
The local name for VAT in Zimbabwe is Value-added tax (VAT).
There is basically 1 VAT rate in Zimbabwe:
- Standard VAT rate is 14.5%
Recent developments
For more information about (recent) rate change developments in Zimbabwe, please click HERE.
Standard rate: 14.5%
This rate applies for all transactions that take place in Zimbabwe, unless an exception applies (such as a reduced rate, the zero rate or an exemption, or a reason to treat the transaction as outside scope of VAT).
Zero rate (0%)
Examples of goods and services taxable at 0%, with the right to deduct VAT
- Exports of goods and services that would otherwise be standard rated. This includes exports of financial services other than short-term insurance.
- International transport of goods and services
- Sales of businesses as going concerns to registered persons
- Gold sales to the central bank
- Services supplied outside Zimbabwe to foreign head offices by Zimbabwean branches or to nonresident persons that are outside Zimbabwe when they are rendered
- Tourism-related services (other than accommodation) rendered by designated tourist facilities, such as hotels, tour operators and car-hire companies
- Intellectual property rights for use outside Zimbabwe
- Certain foodstuffs except rice, margarine, cereals, mahewu, pork, beef, fish, chicken and potatoes, which are now exempt
- Supply of domestic electricity
- Certain goods used for agricultural purposes, such as animal feed, fertilizers, seed, animal remedies, pesticides, plants, tractors and, when exported, specified agricultural implements
- Prescription medicines
- Building bricks
- Goods used by disabled persons
- Fixed charges on commercial and domestic electricity
- Supply of pipeline transportation services
- Livestock
Examples of exempt supplies of goods and services, without the right to deduct VAT
- Localy supplied Financial services, excluding the supply of short-term insurance by insurance agents or brokers
- Medical services
- Educational services by institutions registered under the ministry of education or higher education
- Transport of fare-paying passengers by railway or road
- Supplies of donated goods or services by nonprofit (charitable) bodies
- Supplies of immovable property located outside Zimbabwe
- Rental of residential accommodation
- Staff accommodation
- Water supplied through a pipe for domestic use
- Owners’ rates charged by a local authority (a levy charged by a local authority based on the value of property)
- Commission charges on tobacco sales on auction floors, Tobacco supplied on auction floors, Sale and import of leaf tobacco
- Petroleum oils
- Revenue arising from the operation of a temporary casino license in accordance with the terms of the lotteries and gaming act
- Protective farming clothing, including gumboots, raincoats and gloves used for agricultural purposes
- Eggs, vegetables, fruits, rice, margarine, lactose and mahewu (including cereals, pork, beef, fish, chicken and potatoes, as explained above)
A global VAT/GST rate overview can be found here (note this is a work in progress).
This post was last updated on October 6, 2021.
