Introduction
Starting a new trading business in Zimbabwe comes with important regulatory obligations to the Zimbabwe Revenue Authority (ZIMRA). Compliance not only ensures you avoid penalties and interest charges but also positions your enterprise for growth through access to tax incentives and financing. This 2,000-word guide walks you through every step—registration, form submission, tax head enrollment, returns, and best practices—to help you meet ZIMRA’s requirements seamlessly.
1. Registering with ZIMRA Within 30 Days
Under ZIMRA’s FAQs, every new trader must register within 30 days of commencing business activities—either online via the e-Services portal or manually at any ZIMRA office.
1.1 Online Registration via e-Services
ZIMRA’s e-Services portal allows for streamlined Business Partner (BP) registration:
- Create an e-Services Account: Visit the eFiling portal, click Register, and complete your company or personal details.
- Email Verification: Follow the link sent to your email to activate your account.
- Business Partner Registration: Log in, select “I do not have a Business Partner Number,” fill in your profile, directors, shareholders, and bank details, then upload attachments and submit.
For full step-by-step guidance, see ZIMRA’s Online BP Registration tutorial .
1.2 Manual Registration
If the online portal is inaccessible, download and complete the REV 1 Application for New Registration form from ZIMRA’s website and email scanned copies to zimrahelp@zimra.co.zw or submit physically at any ZIMRA regional office.
2. Required Documents for New Registrants
When submitting your REV 1 form, the following documents must be attached, depending on your entity type:
2.1 Newly Formed Companies
- Certificate of Incorporation
- CR14 – details of directors
- CR6 – registered office address
- Stamped current bank statement for the company
- Memorandum & Articles of Association (first three and last pages)
- Certified ID & Proof of Residence for at least two directors (utility bill or affidavit)
- Public Officer Documents:
- Letter of appointment (name, ID, address, signatory confirmation)
- Certified ID & proof of residence
- Stamped current bank statement
2.2 Individuals (Sole Traders)
- Stamped current bank statement
- Copy of national ID
- Proof of residence (utility bill or affidavit)
2.3 REV 1 vs. REV 2 Forms
- REV 1: For initial registration only—complete all relevant sections to obtain your Business Partner Number (BPN).
- REV 2: For updating existing BP records or registering additional tax heads (e.g., VAT, PAYE).
3. Business Partner Number & Tax Heads
Upon successful registration, ZIMRA issues your Business Partner Number (BPN) and advises which tax heads you are registered for, such as:
- Income Tax (self-assessment or ITF 12/12C)
- Value Added Tax (VAT)
- Pay As You Earn (PAYE)
- Withholding Taxes (dividends, interest, royalties)
- Presumptive Taxes (where applicable)
- Capital Gains Tax
You may apply for additional tax heads anytime via a REV 2 form—ensure you select all that apply to your business model.
4. Annual Tax Return Obligations
Registered taxpayers must submit annual returns for each tax head by the specified deadlines:
- Income Tax (ITF 12C): Self-assessment clients file by 30 April following the 1 Jan–31 Dec tax year.
- Corporate Income Tax (ITF 12): Companies & trusts with audited financials by 30 April.
- PAYE: Monthly returns and remittance by the 10th day after month-end.
- VAT (VAT 7): Returns and payment by the 25th day after each tax period (usually monthly).
Failure to file or pay on time attracts Category 3 civil penalties and interest charges .
5. VAT Registration & Compliance
5.1 Threshold & Application
Any trader whose annual taxable turnover exceeds USD 1,000,000 (or its ZWL equivalent) must register for VAT using Form REV 1, ticking the VAT box.
5.1.1 Online VAT Registration
Use the eFiling portal to apply; ZIMRA verifies your details before issuing a VAT registration number and enabling VAT returns online .
5.2 VAT Returns & Payment
- VAT 7 Return: Submit by the 25th of the following month.
- Input Tax Credits: Claim only against valid tax invoices.
- Record-Keeping: Retain invoices, credit/debit notes, and VAT registers for six years.
6. PAYE & Employer Registration
If you employ staff, register as an employer within 14 days of your first payroll run by completing Form REV 1 and selecting the PAYE tax head .
- Remittance: Deduct PAYE from salaries and remit combined PAYE & NSSA contributions by the 10th of the following month.
- Returns: Submit monthly PAYE returns via the eFiling portal.
7. Presumptive Tax for Small Businesses
Certain small-scale operators pay Presumptive Tax instead of normal income tax. This includes:
- Omnibus and taxi operators
- Driving schools
- Hairdressing salons
- Informal traders & cottage industries
- Small-scale miners
- Restaurants & bottle stores
- Fishing rigs
8. Record-Keeping Requirements
ZIMRA mandates that you keep proper books of account and supporting documents for at least six (6) years:
- Sales & purchase journals
- General ledgers & trial balances
- Bank statements & reconciliation records
- Payroll records & PAYE schedules
- VAT registers & supplier invoices
- Copies of filed returns (ITF 12C, ITF 12, VAT 7, PAYE)
Accurate records not only ease annual filing but also protect you during ZIMRA audits.
9. Penalties & Interest for Non-Compliance
| Offense | Penalty |
| Late registration (>30 days) | ZWL 10,000 per month in default (min.) |
| Late annual return (Category 3) | ZWL 10,000 per month in default |
| Late VAT/PAYE remittance | 25% p.a. on ZWL underpayments / 10% p.a. on foreign currency underpayments |
| Failure to register for VAT when required | Additional assessments & fines |
Timely compliance is the most effective way to avoid these costs.
10. Additional Best Practices & Tips
- Automate Reminders: Use calendar alerts for registration, return, and payment deadlines.
- Leverage Professional Services: Engage local tax consultants or accounting firms for complex filings.
- Use Digital Accounting Tools: Platforms like QuickBooks, Sage Pastel, or Odoo integrate seamlessly with ZIMRA’s eFiling.
- Stay Updated: Regularly check ZIMRA Public Notices for changes to forms, rates, or deadlines.
- Verify Profiles: Periodically log into eFiling to confirm your registered tax heads and contact details are current.
By following these guidelines, you’ll meet your ZIMRA obligations as a new trader, maintain good standing, and focus on growing your business with confidence.
