The Zimbabwe Revenue Authority (Zimra) has reported a 5% increase in value-added tax (VAT) compliance following the implementation of the fiscalisation management system, which is now being extended to target small companies.
Zimra last year stepped up efforts to enforce its fiscalisation management system to bolster government coffers.
In an interview this week, Zimra domestic tax commissioner Misheck Govha said the authority would be expanding its tax network to include many small businesses after the VAT registration threshold was reduced to US$25 000, from US$40 000.
The change went into effect at the start of the year. “Regarding the compliance rate, we have done an assessment where we have applied a fiscalisation data management system and the trend has shown that we are increasing our VAT compliance by 5% from clients who are already on the system,” Govha said. “We are trying to widen the net as much as possible to cover as many clients, who are eligible for VAT since the threshold has been reduced from US$40 000 to US$25 000. “We are chasing everyone, who is supposed to be on the threshold and registered so that we also increase our tax purse. ”. 🔗 Read Full Article
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