The Zimbabwe Tax Authority's official announcement regarding the new fiscalization system

Fiscalization in Zimbabwe is hardware-based; fiscal devices are used. But, at the beginning of 2023, some changes were announced in their National Budget plan. This refers to some changes in the fiscalization system (known as Virtual fiscalization) in terms of modernizing this system, introducing some new features, possible software requirements, a new system for controlling income, and similar. The goal of these changes is to eliminate the challenges being experienced by the current system. That is why the Zimbabwe Tax Authority (ZIMRA) has published a public notice about the Fiscalization Data Management System. Importantly, there are still no new laws and regulations, but they are expected to be published soon. But the new system will support software-based fiscalization and real-time communication with the Ta authority, ZIMRA, which represents a major step forward in the fiscalization rules.

Fiscalization Data Management System, or FDMS, is an integrated fiscalization back-end solution that is focused on interfacing with most of the existing and installed hardware fiscal devices at taxpayers’ points of sale while introducing virtual fiscalization solutions to harness opportunities presented by digitalization, offering self-service facilities to both taxpayers and approved suppliers and manufacturers of fiscal devices, thereby improving ZIMRA Service Delivery.

According to the above-mentioned Public notice, the main functions of FDMS are:

• Fiscal tax invoice-receipt generation
• Credit note or Debit note generation
• Z report generation
• Tracking and checking of the fiscal device upon purchase
• Registering fiscal devices
• Online Error reporting and acquittal
• Online device monitoring

Also, some benefits of FDMS have been introduced and referred to:

• Taxpayer login portal
• Allows for invoice validation, confirmation of receipt generation through self-service login into FDMS, and scanning of QR codes to prevent fraud.
• Allows for the issuance of Credit notes and Debit notes, assisting taxpayers in amending errors made on receipts.
• Convenience and low compliance costs through the use of the mobile Android App and Microsoft Windows App
• Instant API gateway communication
• Convenient device error reporting and resolution
• Quick registration and interfacing of fiscal devices
• VAT Input tax schedules will be system-generated.

We are monitoring new changes, and new regulations and explanations are expected soon.