Fiscalisation, interfacing obligations for VAT registered operators

What is Fiscalisation?

FISCALISATION refers to the use of fiscal devices to record taxable transactions and other tax information on the read-only fiscal memory at the time of sale for Value Added Tax (VAT) purposes. It was introduced in Zimbabwe on June 8, 2010 through Statutory Instrument 104 of 2010.

Who is required to fiscalise?

◆ Every registered operator who is in category “C” was required to use fiscal devices with effect from October 1, 2011.

◆ Every registered operator who is in categories A, B and D was required to use fiscal devices with effect from January 1, 2017. How do I know the correct type of fiscal device to use?

VAT registered retail operators are, for the purposes of recording taxable transactions, required to use:

◆ a fiscalised electronic register; or

◆ a non-fiscalised electronic register together with a fiscal memory device.

All other operators who are not retail operators are required to use:

◆ an electronic signature device; or

◆ a fiscalised electronic register; or

◆ a non-fiscalised electronic register together with a fiscal memory device.

What are my obligations as a registered operator who is required to fiscalise

◆ To acquire appropriate devices from approved suppliers

◆ To register the devices with ZIMRA by completing and submitting the ZIMRA Form FRT1. The form can be obtained or accessed from any ZIMRA office or from the approved suppliers, or the ZIMRA website (www.zimra.co.zw <http://www. zimra.co.zw>).

◆ To integrate systems to the device

◆ To ensure there is back-up power supply capable of lasting at least eight hours from the time the power supply ceases

◆ To liaise with the supplier on installation and configuration of the devices onto the system and interfacing with the ZIMRA server

◆ To ensure tax rates configured into the system are correct

◆ To print test Z-Report indicating that the device is now in fiscal mode

◆ To confirm with ZIMRA that the device is working and ready to record tax information

◆ To liaise with ZIMRA on the seal- ing of device indicating that the device is ready for use

◆ To record all sales using the device once it has been fiscalised and not to use any alternative systems without the approval of ZIMRA

◆ To prepare daily, monthly and annual reports of sales and VAT

◆ To keep a record of the servicing of the device

To ensure that no other person uses the fiscalised device which has been registered under your BP Number

◆ To report all faults to ZIMRA promptly and no later than eight hours from the time of occurrence and get reference numbers for all faults reported

◆ To ensure that any breaking of the seal is approved and always done in the presence of ZIMRA personnel. NB: If a device is going to be out of use for more than eight hours due to interruption in power supply, theft, technical fault or any other similar reason, the registered operator is required to report to ZIMRA promptly and within eight hours from the time the device went out of use and receive an error report number from ZIMRA.

If the fault occurs after business operating hours, the registered operator should make a report by 0800hrs on the following working day. Do I get any assistance or benefit from ZIMRA on acquiring the fiscal devices?

◆ Registered operators can claim 50% of the cost of acquisition of the fiscal devices as Input Tax on their VAT 7 Return

◆ The remaining 50 percent is also claimable as capital allowances under the Income Tax Act for clients registered for Income Tax

◆ The local supply of fiscalised electronic registers and fiscal memory devices is zero-rated for VAT purposes

What does interfacing with ZIMRA mean?

Interfacing means linking of a registered operator’s fiscal devices to the ZIMRA server. All registered operators are required to interface their fiscal devices to the ZIMRA server and the registered operator should contact their supplier of fiscal devices for assistance.

1. Do we have any deadlines for interfacing?

All fiscal devices should be interfaced by December 31, 2017.

2. Are there any consequences for failing to fiscalise and interface devices?

◆ Failure to fiscalise or use fiscalised devices attracts a civil penalty of US$25 per point of sale per day up to a maximum period of 181 days.

◆ Any person whose device is not interfaced by December 31, 2017 is liable to a fine of US$25 per day up to a maximum period of 181 days.

◆ Thereafter, prosecution procedures are instituted if one is in default.

3. Who are the approved suppliers of fiscal devices?

In addition to the existing suppliers of fiscal devices, the Zimbabwe Revenue Authority has been authorised in terms of the General Notice 307 of 2017 published in the Zimbabwe Government Gazette of June 23, 2017 to sell fiscal devices.

The fiscal devices are available for sale country wide at ZIMRA offices. Disclaimer

This article was compiled by the Zimbabwe Revenue Authority for information purposes only. ZIMRA shall not accept responsibility for loss or damage arising from use of material in this article and no liability will attach to the Zimbabwe Revenue Authority.

◆ To contact ZIMRA: WhatsApp line: +263 782 729 862 Visit our website: www. zimra.co.zw Follow us on Twitter: @Zimra_11 Like us on Facebook: www.facebook. com/ZIMRA.11 Send us an e-mail: pr@zimra.co.zw/webmaster@ zimra.co.zw Call us (Head Office): 04758891/ 5; 790813; 790814; 781345; 75162P4R; 7A3N1D