Zimbabwe repeals domestic zero-rating of basic goods from 1 January 2024 (SI 248 of 2023)
This page records one dated change. For the rules in Zimbabwe as they stand today, see the Zimbabwe guide →
- Jurisdiction
- Zimbabwe
- Tax
- VAT
- Change type
- Rate change
- Status
- In force
- Impact
- Plan ahead
- Announced
- 29 December 2023
- Effective
- 1 January 2024
- Instrument
- ZW-STATUTORY-INSTRUMENT-248-of-2023
- Authority
- Zimbabwe Revenue Authority (ZIMRA)
- Verified
- Fetched from official source · high confidence
Zimbabwean VAT-registered suppliers of basic goods, agricultural goods and foodstuffs that were zero-rated, and their customers.
Businesses selling previously zero-rated basic goods should verify current rating (exempt or standard 15.5%) and adjust input VAT recovery accordingly; exempt suppliers cannot recover input VAT on inputs used in exempt supplies.
Statutory Instrument 248 of 2023, gazetted on 29 December 2023 alongside the Finance Act, 2023, amended the VAT (General) Regulations, 2003 (SI 273 of 2003) with effect from 1 January 2024: section 4 repealed the Second Schedule of zero-rated domestic supplies, ending zero-rating of basic goods, and the regulations zero-rating going concerns, tourism services, agricultural goods, foodstuffs and goods for disabled persons were repealed; a substituted First Schedule added items to the exempt list. Basic goods not moved to the exempt list became standard-rated (15% at the time). Later instruments partly reversed this: SI 15/2024 (gazetted 9 February 2024) restored zero-rating for going concerns and tourism services with effect from 1 January 2024 and replaced the First Schedule again from 9 February 2024, and SI 105/2024 with SI 140/2024 restored a Second Schedule zero-rating supplies of gold to Fidelity Gold Refinery, deemed effective from 1 January 2024.
What changed in detail
Statutory Instrument 248 of 2023, gazetted on 29 December 2023 alongside the Finance Act, 2023, amended the Value Added Tax (General) Regulations, 2003 (SI 273 of 2003) with effect from 1 January 2024:
- section 4 repealed the Second Schedule, the list of zero-rated domestic supplies, ending zero-rating of basic goods;
- the regulations zero-rating going concerns, tourism services, agricultural goods, foodstuffs and goods for disabled persons were repealed;
- a substituted First Schedule added items to the exempt list.
Basic goods that were not moved to the exempt list became standard-rated, at 15% at the time.
ZIMRA notes that the exemptions in section 11 of the VAT Act (including residential accommodation, school education, medical and financial services) and the zero-rating in section 10 of the Act, mainly exports and related services, were not affected.
What it means
The repeal is in force but was partly reversed, with backdated effect. SI 15 of 2024, gazetted on 9 February 2024, restored zero-rating for going concerns and tourism services with effect from 1 January 2024, and replaced the First Schedule again from 9 February 2024. SI 105 of 2024 and SI 140 of 2024 restored a Second Schedule zero-rating supplies of gold to Fidelity Gold Refinery, deemed effective from 1 January 2024. So a going-concern sale, tourism service or gold delivery in early 2024 was zero-rated after all, and invoices or returns prepared at 15% may need correcting.
For other former zero-rated goods, the question is whether an item sits in the current First Schedule (exempt, with no input tax recovery) or is standard-rated, now at 15.5% since 1 January 2026. ZIMRA’s summary page does not yet mention the 2024 restorations.
Proof
With effect from 1 January 2024 the VAT Regulations were amended as follows: Insertion of additional items in First Schedule of the VAT Regulations (Exemptions). Repeal of all Zero rated items in Second Schedule of the VAT Regulations.
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