The Zimbabwe Revenue Authority (Zimra) has threatened to punish small to medium enterprises, SMEs, who fail to register for Value Added Tax (VAT) as the tax collector looks for more sources of revenue for the struggling government. SMEs have been given until the end of June to register for VAT.
ZIMRA’s acting commissioner general, Happias Kuzvinzwa said:
To increase the tax base, we have given SMEs up to the end of June this year to come and register for VAT voluntarily and make voluntary declaration of their income. This is a window of opportunity where no questions would be asked, no penalties are levied for failure to pay tax over the years.
This is a commendable development and is expected to increase compliance levels and the much-needed revenue. But, when the period elapses, it will be a different story and it will be difficult for them as those that would have failed to take advantage of the window will face the full wrath of the law.
More: Financial Gazette