ZIMRA Extends VAT Integration Deadline to May 31

Oscar J Jeke- Zim Now Reporter

The Zimbabwe Revenue Authority has extended the deadline for integrating the Tax and Revenue Management System with the Fiscal Devices Management System (FDMS) to May 31, 2025. The extension is intended to facilitate a smoother transition for VAT-registered operators and provide additional time for them to comply with the new system requirements.

In a public notice issued on April 23, ZIMRA advised all VAT-registered operators that the deadline for implementing the TaRMS/FDMS integration had been moved to the end of May. This development follows Public Notice Number 7 of 2025 and is part of broader efforts to modernize tax processes and improve compliance across the board.

ZIMRA announced that it had upgraded the TaRMS platform to enhance the user experience and improve accountability through the self-service portal. Among the improvements are new functionalities that allow for the automatic generation of input tax schedules and the automatic management of credit and debit notes. The upgraded system also includes provisions for input tax apportionment and enables taxpayers to select the relevant tax period for claiming VAT.

The authority emphasized that only fiscal tax invoices, debit notes, and credit notes issued on or before May 31, 2025, will be valid for VAT input tax claims. ZIMRA urged all registered taxpayers to ensure that they claim all valid and qualifying fiscal documents issued before this deadline in order to avoid forfeiting their entitlement to make such claims.

Regarding the claiming of input tax after the cut-off date, ZIMRA explained that only fiscal tax invoices, debit notes, or credit notes received or issued after May 31 will be eligible for claims through the TaRMS Taxpayer Self-Service Portal. Most VAT-registered operators must submit their claims within twelve months from the date of issue, while diplomats and development partners are allowed up to three years.

ZIMRA also provided clarification on VAT for imported services, stating that while this falls under a separate tax type in TaRMS, the VAT amounts related to such services can still be claimed as input tax on the VAT 7 return. However, these amounts will have to be captured manually by the taxpayer.

In terms of input tax apportionment, ZIMRA stated that the integration would support automatic calculations for taxpayers who deal in both exempt and taxable supplies. The system will enable them to apply their specific apportionment ratios directly on the VAT 7 return, streamlining the process further.

Acknowledging that some operators may still be experiencing difficulties, ZIMRA advised that any taxpayer facing challenges or unique circumstances that could prevent full integration should urgently contact the authority to resolve such issues.

In closing, ZIMRA reminded all VAT operators to regularize any outstanding matters related to fiscal tax documentation before the deadline. The authority warned that failure to do so could result in the loss of entitlement to input tax claims on those documents.