Business faces fiscalisation implementation challenges Ernst & Young Chartered Accountants senior manager Mr Sifelani Nhliziyo addresses delegates during a seminar in Bulawayo yesterday
Ernst & Young Chartered Accountants  senior manager Mr Sifelani Nhliziyo addresses delegates during a seminar in Bulawayo yesterday

Ernst & Young Chartered Accountants senior manager Mr Sifelani Nhliziyo addresses delegates during a seminar in Bulawayo yesterday

Oliver Kazunga, Senior Business Reporter
SOME fiscal devices are not able to take credit notes resulting in businesses facing challenges in implementing the fiscalisation process.

This emerged yesterday during a seminar in Bulawayo organised by Ernst & Young Chartered Accountants to review the 2017 national budget and tax update.

Fiscalisation entails the configuring of fiscal devices to enable the authorities to record sales and other tax information on the read-only fiscal memory at the time of sale for use by the tax authorities in Value Added Tax (VAT) administration.

The fiscalisation system was introduced by the Government in 2010 through Statutory Instrument 104 of 2010.

Business leaders from the city attended the seminar at which the chartered accountant firm’s senior manager responsible for tax Mr Sifelani Nhliziyo gave an overview of tax issues for the year 2017.

During the seminar, delegates expressed concern over the failure by some fiscal devices to take credit notes.

“At the moment some fiscal devices are not taking credit notes and given such a challenge. How do we go about it?” asked one of the delegates.

In his response, Mr Nhliziyo said:

“You have highlighted that some fiscal devices are not taking credit notes; that is a practical challenge and you need to engage Zimra on that one.

“You, however, need to keep a proper record of the credit notes transactions.”

Fiscalisation requires that all businesses register for VAT under category C and operators who were fiscalised in terms of the VAT regulations of 2010 but have not yet interfaced or linked their fiscal devices with the Zimra server should do so.

Companies that fall in category C are those with an annual turnover of $240 000.

The system also entails that businesses in VAT categories A, B and D should have fiscalised their operations before January 1, 2017.

Categories A and B are those registered operators who are submitting returns after every two months while category D clients submit returns on a seasonal basis, or as agreed with the Commissioner General.

The Government introduced the electronic fiscalised cash registers and fiscal memory devices with the objective to plug leakages in VAT payment.

Since the introduction of the fiscalisation, Zimra has been working on progress to improve the implementation of the system by businesses.

The tax collector envisages that a new and improved fiscalisation system would result in a more prudent way of tax administration.

As part of efforts to enforce VAT compliance, Minister Chinamasa set the deadline to ensure all businesses comply with the fiscalisation process.

Failure to comply attracts penalties of up to $25 a day and such businesses will not be issued with tax clearance certificates.

— @okazunga.

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