What is fiscalisation?
Fiscalisation is the recording of transactions for Value Added Tax purposes using electronic fiscal gadgets. The fiscalised gadgets record the information on read only memory, meaning that once recorded, this information cannot be altered.
Who is required to fiscalise?
All VAT registered operators are required fiscalise their operations and ensure the devices are interfaced with Zimra systems.
What are fiscal devices?
Fiscal devices are electronic devices, which contain a “fiscal memory”. A “fiscal memory” is a special read only memory which is permanently built into a fiscalised device to store tax information at the time of the sale. There are three categories of fiscal devices, from which clients can choose from depending on their nature of business.
Fiscalised electronic cash register/ electronic tax registers (ETRs)
Electronic signature device (ESD)
Below is an explanation of the three categories and who should use each device.
- Fiscalised electronic registers/ electronic tax registers (ETRs)
These are manual stand-alone devices more like cash registers the difference being that they have a fiscal memory.
These devices have a 3G sim card that transmit data to the ZIMRA server as sales are being receipted.
This device is suitable for small to medium retail businesses that issue out receipts to their customers e.g. small grocery shops, hair salons, clothing boutiques, restaurants, bars, hardware and tuck shops.
A product list is uploaded on to the device and each product is coded for ease of reference when transacting.
- Fiscalised printers
These are small printers attached to points of sale or computer systems.
Fiscal printers work with points of sale/computer systems that use retail software. They also have a fiscal memory for recording sales at the time of printing and also a 3G sim-card that transmits data to the ZIMRA server.
Fiscal printers are suitable for small, medium and large clients that are in retail business that have computerised systems and issue out receipts e.g. supermarkets, hardware, furniture retailers, restaurants and other retail shops.
- Electronic signature devices
These devices affix digital signatures to transactions and is not suitable for clients who issue manual invoices.
These devices are connected to an already existing computer invoicing system.
Data is sent to the ZIMRA server as the client issues the invoice via a data sim card that is in the device.
These devices are suitable for registered operators who issue tax invoices to their clients.
How does the Government support Fiscalisation?
The Government gives the following incentives on the purchase of fiscal devices:
- a) 50% VAT refund on the purchase price of the fiscal device claimed on the VAT return
- b) 50% of the purchase price of the device is claimed through capital allowances
- c) All approved suppliers import these devices duty free
- d) Devices are also not subjected to VAT on importation by approved suppliers
- e) Local supply of fiscal devices is also zero rated
What are the consequences of not fiscalising on time?
According to Section 10 (1) of SI 104 of 2010 penalties for failure to fiscalise are pegged at $25 per day up to a maximum of 181 days. To avoid these penalties clients need to fiscalise and also notify ZIMRA when they start the process of fiscalising.
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.
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