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By Ross Moyo
As the broke Zimbabwe finance ministry continues to dig deeper for more sources of revenues, Zimbabweans are now being charged an extra fee to simply pay for online services like Strlink, DsTV, social media page boosting,or any web hosted services which they dearly need for the booming e-commerce business and online ecosystem The tax has been received as a punitive and regressive measure which will make basic online services much more expensive, but against Zimbabweans only as the rest of the world continues to reciev these services at a norminal value, which may force many to find their way round.
By Ross Moyo
Zimbabwe’s introduction of the Digital Services Withholding Tax (DSWT) has sent ripples through the business community, with companies using offshore digital services now required to navigate new tax compliance rules. Effective January 1, 2026, the tax aims to capture VAT on imported digital services, leveling the playing field for local providers.
The DSWT applies to payments for services like digital streaming, e-hailing, and online advertising from non-resident suppliers. Businesses using these services will see regulated payment intermediaries, including banks and mobile money operators, withholding the tax.
“The measure is not intended to result in double taxation,” clarified the Ministry of Finance, Economic Development and Investment Promotion. Taxpayers already accounting for VAT on imported services won’t be liable for DSWT on the same transactions.
For businesses, this means reviewing their digital service contracts and ensuring compliance with the new rules. “The ministry is engaging with financial institutions to ensure consistent application, limited to imported services excluding goods,” the statement added.
While the tax doesn’t apply to goods, companies importing goods online remain subject to customs duty, VAT, and other taxes. The Zimbabwe Revenue Authority (ZIMRA) will provide further guidance on implementation.
Businesses are advised to stay updated with ZIMRA’s guidelines to avoid disruptions. The move is part of Zimbabwe’s efforts to modernize its tax system and capture revenue from the growing digital economy.
As the country adapts to these changes, companies leveraging digital services should prepare for adjustments in their operational costs and compliance procedures.
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