VAT Went to 15.5%: What Changed for Your Shop
Published · Last checked 18 October 2026 · 4 min read
Zimbabwe's standard VAT rate went from 15% to 15.5% on 1 January 2026. Half a percent sounds small, but it touches every price tag, every till setting and every VAT return. Here is what you need to know.
The change
The Finance Act (No. 7) of 2025, gazetted on 29 December 2025, raised the general VAT rate to 15.5% from 1 January 2026. Many websites and old price lists still say 15%; they are out of date.
How to calculate 15.5% VAT
Adding VAT to a price: multiply by 1.155. US$10.00 before VAT → US$10.00 × 1.155 = US$11.55 (VAT of US$1.55).
Finding the VAT inside a VAT-inclusive price: multiply by 15.5 ÷ 115.5 (about 0.1342). A US$11.55 shelf price contains US$11.55 × 0.1342 = US$1.55 VAT.
Should you change your shelf prices?
If you kept your shelf prices the same, you are now absorbing the extra VAT.
| Shelf price (VAT included) | Your share at 15% | Your share at 15.5% | You lose per item |
|---|---|---|---|
| US$11.50 | US$10.00 | US$9.96 | US$0.04 |
| US$115.00 | US$100.00 | US$99.57 | US$0.43 |
That is about 0.4% of your takings before VAT. On thin margins (groceries, cement, fuel), it adds up over a year. Decide on purpose whether to pass it on or absorb it.
Check your till and invoicing system
- The standard rate in your POS and accounting software is set to 15.5%.
- Product prices marked "VAT inclusive" or "VAT exclusive" are still marked correctly.
- Printed receipts show the right VAT amount.
- Credit notes for sales made at 15% (before 2026) reverse VAT at the original rate. Ask your provider how the system handles this.
The December 2025 / January 2026 return
ZIMRA's Public Notice 7 of 2026 explains the changeover. Category A businesses filed a combined December 2025 and January 2026 return: December sales at 15%, January sales at 15.5%. Because TaRMS calculates at 15.5%, the December figures had to be adjusted. If you are unsure whether yours was filed correctly, ask your tax practitioner to review it.
Other 2026 VAT changes worth knowing
- Tax invoices must be fiscal. A valid tax invoice must now come from a fiscal device and show Valid on FDMS. See what must be on a fiscal tax invoice.
- Some medicines and agricultural goods moved from zero-rated to exempt. Exempt sales carry no VAT, but you generally cannot claim input tax on the costs linked to them. Pharmacies and agro-dealers should check their product lists with an adviser.
- Selling a business as a going concern is no longer zero-rated in most cases.
- VAT on imported services must be paid in US dollars or another foreign currency.
How TaxComply helps
TaxComply's POS applies the current VAT rate to every sale and shows VAT-inclusive and VAT-exclusive totals clearly, so your receipts and your returns agree. Businesses across Zimbabwe rely on it to keep every price and every return right. Get started at taxcomply.co.zw or email sales@taxcomply.co.zw to talk to our team.
Related: Why a bad supplier invoice can cost you money
Frequently asked questions
Is Zimbabwe's VAT 15% or 15.5%?
15.5% from 1 January 2026. Sources showing 15% are out of date.
Do I charge 15.5% on an invoice dated December 2025 but paid in January?
It depends on the VAT time-of-supply rules. ZIMRA's Public Notice 7 of 2026 covers this; ask your tax practitioner for your case.
Did the VAT registration threshold change?
No. Compulsory registration still applies above US$25,000 of taxable sales in 12 months. See when you must register for VAT.
The right VAT on every sale
Current rates applied automatically, with clear VAT-inclusive and exclusive totals.