Zimbabwe VAT change puts pressure on 2026 bookings

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.