Compliance with the fiscalization data management system in Zimbabwe

The Zimbabwe Revenue Authority (ZIMRA) has issued a reminder to all registered operators under the Value Added Tax (VAT) Act [Chapter 23:12] regarding the compliance requirements for Fiscal Tax Invoices (receipts). This reminder aims to ensure compliance and streamline the VAT process for all registered operators.

It is stated that:

1. Fiscal device requirement: all fiscal tax invoices (receipts) must be generated by a fiscal device that is integrated with the ZIMRA Fiscalization Data Management System (FDMS).
2. Non-compliance consequences: invoices (receipts) that do not comply with these requirements cannot be used to claim VAT input tax or income tax expenditure.
3. Invoice (receipt) Features: According to Section 20(4) of the VAT Act, a compliant fiscal tax invoice must include:

• The words “Fiscal Tax Invoice” are prominently displayed.
• The supplier's name, address, and registration number.
• The recipient's name, address, and registration number (if applicable).
• A unique serial number and the date of issuance.
• A description of the goods or services supplied.
• The quantity or volume of goods or services supplied.
• The amount of tax charged.

4. Verification process: to ensure an invoice is generated by a compliant fiscal device:

• The invoice (receipt) should feature a verifiable QR code, which can be authenticated via a QR code scanner or the ZIMRA FDMS portal.
• The details on the printed invoice must match those transmitted to the FDMS and be verifiable.
• The invoice (receipt) should show as 'valid' on the validation portal without errors. Any discrepancies must be rectified by the issuer.

5. Buyer Information: When a buyer requests a fiscal tax invoice (receipt), it is mandatory to capture the buyer's full details, including:

• Buyer Name
• Buyer Address
• Buyer TIN
• Buyer VAT Number (if registered for VAT)