What is VAT?
VAT is the abbreviation of Value Added Tax and is in general due when goods and/or services are sold. It generally applies to all goods and services that are bought and sold for use or consumption in Zimbabwe. It is a Consumption Tax because it is borne ultimately by the final consumer.
Who must pay VAT?
Generally, VAT is invoiced by the supplier that is selling goods or services and collected from the customer. Subsequently, the supplier reports and remits the collected VAT to the tax authorities.
Why am I being charged VAT?
Freshworks conducts sales in Zimbabwe that is above the threshold amount required for VAT registration. As such, Freshworks is required to collect Zimbabwe VAT on all supplies made to customers in Zimbabwe.
How is Freshworks determining which customers Zimbabwe VAT applies to?
Freshworks will apply VAT based on the VAT rules for a non-resident suppliers providing services to customers in Zimbabwe.
It is your responsibility as a customer to ensure that your bill-to/ship-to address is correct.
Does Freshworks provide VAT exempt or non-VATable services?
No. All services currently provided by Freshworks to customers in Zimbabwe are subject to VAT at the standard rate.
Are there any special exemptions applicable for charities under which VAT may not be charged?
No. There are no exemptions from VAT available under Zimbabwe VAT rules for the services Freshworks supplies to charities in Zimbabwe.
Will VAT apply even if a Zimbabwe company provides a valid VAT number to Freshworks?
Yes. VAT applies to all the products/ services that Freshworks makes to customers in Zimbabwe.
Are there any VAT obligations for me as a customer?
No. The customer in principle has no VAT obligations. If you are a registered for VAT in Zimbabwe and you want to claim an input tax credit for the VAT paid to Freshworks, as a minimum, you should ensure to keep a copy of Freshwork’s invoice for your records.
Disclaimer
Every customer is unique and so are their specific tax circumstances. The above stated information should not be considered as tax advice, but as a general overview of relevant tax rules. Freshworks cannot provide you with tax advice for your individual situation, and therefore we strongly recommend speaking with a professional tax advisor for tailored advice.
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