Zimbabwe Amends VAT Exemptions For Essential Goods And Services Introduced In 2023

Under Part I of the schedule, the exemption applies to the supply of certain goods or services. The goods and services that fall under this exemption include:

1. Water supplied through a pipe for domestic use.
2. Domestic electricity supply.
3. Rates charged by a local authority.
4. Items of agricultural equipment or machinery.
5. Fuel and fuel products.
6. Ethanol fuel.
7. Road toll fees collected by the Zimbabwe National Road Administration.
8. Tobacco supplied on the auction floors.
9. Commission charges on tobacco sales at auction floors.
10. Other goods and agricultural produce.
11. Ancillary services supplied by the National Pharmaceutical Company (Nat Pharm).
12. Goods and services provided by the Medical Statutory Bodies.
13. Sanitary wear and sanitary products (menstrual cups, tampons, disposable napkins).
14. Animal feed.
15. Animal remedies for livestock, poultry, fish, and wild animals.
16. Fertilizers intended for improving or maintaining the growth of plants or soil productivity.

In Part II of the schedule, the regulation specifies the exemption of certain goods imported into Zimbabwe. The exemption applies to goods that fall under specific items or headings as contemplated in the Customs and Excise Act [Chapter 23:02]. The exempted goods include:

1. Goods for the exclusive use of governments other than the Government of Zimbabwe.
2. Goods for foreign diplomatic missions and international representatives.
3. Goods for the Head of State of Zimbabwe.
4. Goods for former Heads of State of Zimbabwe.
5. Goods for the Government of Zimbabwe covered by a Government Duty-Free Certificate.
6. Travelers’ cheques and bills of exchange denominated in foreign currency.
7. Importation of electricity.
8. Publications and advertising materials related to fairs, exhibitions, and tourism in foreign countries.
9. Human remains.
10. Goods imported under an international carnet.
11. Goods temporarily imported under section 124 of the Customs and Excise Act.
12. Goods of no commercial value.
13. Goods imported for conveyance to any export country (Transit Goods).
14. Specific items of agricultural equipment or machinery.

The following goods are also exempt from value-added tax (VAT) in Zimbabwe:

1. Aviation spirit
2. Unleaded petrol
3. Other types of petrol
4. Jet fuel (spirit type)
5. Kerosene-type jet fuel with specified density and flash point
6. Other types of kerosene jet fuel
7. Power kerosene with specified density and flash point
8. Other types of power kerosene
9. Illuminating or heating kerosene with specified density and flash point
10. Other types of kerosene
11. Diesel
12. Other fuel oils
13. Unmanufactured tobacco (tobacco refuse)
14. Milk and cream, not concentrated and without added sugar or sweetening matter
15. Concentrated milk and cream or those with added sugar or sweetening matter (excluding specific commodity codes)
16. Fresh or chilled tomatoes
17. Onions and shallots
18. Garlic
19. Fresh or chilled cabbages, cauliflowers, kohlrabi, kale, and similar edible brassicas
20. Fresh or chilled lettuce and chicory.