Zimbabwe cuts VAT to 14.5%

The Zimbabwean 2020 budget includes a number of proposed changes to the VAT regime:

• A reduction in the VAT rate from 15% to 14.5%
• A rise in the VAT registration threshold from ZWL60,000 to ZWL 1 million per annum
• Extension of VAT collection obligations to non-resident digital, broadcast and telecoms service providers with local customers
• Allowance for the deduction on import VAT on services