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    The Zimbabwean
    January 7, 2026 (about 2 months ago)

    Zimbabwe VAT change puts pressure on 2026 bookings

    Featured image for: Zimbabwe VAT change puts pressure on 2026 bookings
    Zimbabwe VAT News • The Zimbabwean

    Summary

    Zimbabwe has increased the standard VAT rate on tourism services from 15% to 15.5% and re‑classified activities and transfers from zero‑rated to standard‑rated, effective 1 January 2026. The move puts pressure on operators with long‑lead bookings, prompting calls for a transitional period and raising compliance costs. The change is expected to reduce Zimbabwe’s competitiveness in the Southern African tourism market.

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    Key Facts

    • •From 1 Jan 2026, Zimbabwe raises the standard VAT rate on tourism services from 15% to 15.5% and reclassifies activities and transfers from zero‑rated to standard‑rated.
    • •The change applies to all tourism components—accommodation, activities, transfers, bundled packages—affecting long‑lead bookings made under the previous zero‑rated regime.
    • •Operators with unpaid 2026 contracts negotiated at zero‑rate face a potential 15.5% uplift, prompting renegotiations and risk of reputational damage.
    • •Industry bodies call for a 12‑month grace period or phased implementation to mitigate financial strain and preserve competitiveness.
    • •The shift increases administrative and compliance costs, requiring revisions to systems, contracts, and rate structures across multi‑currency and cross‑border services.
    Africa
    Zimbabwe
    Compliance
    Cross-Border
    VAT Rates
    Read Full Article at The Zimbabwean