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Nyasha Report

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MIDLAND STATE UNIVERSITY

FACULTY OF BUSINESS SCIENCES

DEPARTMENT OF ACCOUNTING SCIENCES

LOGBOOK

i. ACKNOWLEDGEMENTS

I would like to extend my sincere gratitude to Midland State University for giving me the

chance to go out in the field and gain industrial experience. I would like to express my

sincere gratitude to my supervisor Ms Charity Hove for her invaluable guidance, support and

mentorship throughout the attachment period. Her expertise and encouragement were

instrumental in enhancing my skills and knowledge. Special thanks to the entire team at

Salfor Commercials Services for their welcoming environment and willingness to share their

expertise. I am grateful for the opportunity to learn from such talented professionals.

My gratitude will be incomplete without mentioning my family for encouraging me from the

beginning and their guidance in whatever l pursue and their belief in my abilities kept me

motivated throughout the process. Most importantly l would like to thank the Lord Almighty

for the opportunity of a memorable graceful period at Salfor Commercial Services.


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ii. Executive Summary

the industrial attachment report is detailed under five chapters. the chapters are composed of

various information as laid below.

CHAPTER 1

This compose of the background of Salfor Commercial services and the writer’s objectives of
the report through the period of industrial attachment

CHAPTER 2
Chapter two provides an oversight explanation of location and brief history of Salfor
Commercial Services, Objectives, mission, vision, goals its profiles and Organisational
structure.

CHAPTER 3
Chapter three covers areas of major activities to be undertaken by the internee at Salfor
Commercial services during field attachment period.

CHAPTER 4
It covers work accomplished by the internee on set objectives by Salfor Commercial Services
and the writer. This chapter brings out experiences, skills and lessons attained from the
internship exercise.

CHAPTER 5
This chapter describes challenges, limitations encountered during the field of attachment
program, it also layout how various challenges encountered were handled. The conclusion of
this report is here.
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iii. Abbreviations

PAYE- Pay as You Earn

CGT- Capital Gains Tax

ZIMRA- Zimbabwe Revenue Authority

VAT- Value Added Tax

TIN Number- Taxpayer Identity Number

TARMS- Tax and Revenue Management System

SCS- Salfor Commercial Services

NSSA-National Social Security Authority

QPD-Quarterly Payment Dates

Zimsun- Zimbabwe Sun Limited

ZIMASCO -Zimbabwe Iron and Smelting Company


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TABLE OF CONTENTS

i. Acknowledgements
ii. Executive Summary
iii. Abbreviations

Chapter 1: Introduction
1.1 Background
1.2 Objectives of the report

Chapter 2: Description of the work-related learning company


2.1 Location and Brief history of Salfor Commercial Services
2.2 Objectives of Salfor Commercial Services
2.3 Organisational structure for Salfor Commercial Services (including organogram)
2.4 The various departments/units in the Salfor Commercial Services and their functions

Chapter 3: Work plan

Work plan prepared for the students by Salfor Commercial Services

Chapter 4: Work accomplished

Work accomplished to date on set objectives

Chapter 5: Summary, Conclusions and Recommendations.


5.1 Summary of activities carried out
5.2 Problems encountered to date during work related learning
5.3 Suggestions for improvement for Salfor Commercial Services
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CHAPTER 1: INTRODUCTION

This chapter seeks to introduce the company to which the writer is attached. The company
offers expertise in taxation, financial consulting, financial reporting and audit and assurance.

The Company
Registered Name: Salfor Commercial Services (Private) Limited
Trading Name: F Garikai & Company
Date of Incorporation: 11 June 1996
Registration Number (TIN): 4248/96
Business Partner Number: 200047966
VAT Number : N/A

1.1 Background
The report was prepared by a Midlands State University student in partial fulfilment of the
requirements of Bachelor of Commerce Honours Degree in Applied Accounting. The report
gives a detailed account of the duties and training that are being undertaken by the writer
during her period of attachment at Salfor Commercial Service (Pvt) Ltd. The third year of
study is an industrial attachment year were students go for internship in their chosen field of
professions for a period of at 12 months in order to apply the theoretical knowledge learnt in
the past two years and gain exposure of real work formalities. This work-related learning is
aimed at giving prospective graduates a foresight of the standards they are expected to meet
as they venture into formal employment after completing their respective degree programs.

1.2 Objectives of the report


This report has been prepared to give a picture of how Salfor Commercial Services operates,
from the student’s perspective together with a cross examination of the relevance of theory
learnt at the university. An appreciation of the relevance of theoretical concepts learnt is
analysed against the real demands of the corporate environment in this report to enable the
university to assess the relevance and adequacy of courses content.
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CHAPTER 2: DESCRIPTION OF WORK-RELATED LEARNING COMPANY

2.1 Location
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Brief history of Salfor Commercial Services


Salfor commercial Services trade in as F Garikai & CO it has got only one branch operating
in Kwekwe on 1st floor, CAIPF building Kwekwe. Salfor Commercial Services (Pvt) Ltd
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was founded by Mr. Fortune Garikai.It was established in 1995 and fully incorporated in
1996 from his personal savings. Salfor Commercial Services trading as F Garikai and
Company is a public accounting firm in Kwekwe that offers services in the areas of auditing,
review, accounting, tax, and management consulting. The Company has emphasis on high
quality work and performance and that has allowed it to grow rapidly since opening its doors.
The Company has grown from strength to strength by obtaining new clients through its
reputation and keeping existing clients by being responsive to their requests. It is SCS
philosophy to be unique by providing the broad range of service and in-depth industry
experience its clients expect; and at the same time, retain the personal service and
responsiveness which has contributed to its growth. SCS was created to address the need for
quality service of comprehensive accounting and tax documentation. The Company provides
monthly financial statements to many of its clients. It also makes sure that all its clients
comply with all applicable state tax and licensing requirements. Salfor Commercial Services
is committed to providing its employees with a good environment where innovation and
creativity is encouraged. Most importantly, its employees are provided with the same
concern, respect and client service-orientated attitude as they are expected to give to its
clients.
Company Ownership
Directors
 Fortune Garikai – Public Officer / Managing Director
 Virginia Garikai – Non-Executive Director

The company is wholly Zimbabwe owned. The director holds a Bachelor’s Degree in
Business Studies from the University of Zimbabwe and is an Associated Member of the
Chartered Institute of Secretaries& Administrators in Zimbabwe. He is also a registered
Public Accountant. Mr. Garikai started his working career in January 1990 with Africa Sun
Ltd, then Zimsun Ltd. He left in September of the same year to join the Small Enterprises
Development Corporation (SEDCO) where he worked as an Operations Officer, Business
Analyst and Senior Business Analyst. He left SEDCO in 2002 to run his company on a full-
time basis. He has run his company successfully over the years and is now a force to reckon
with in the Midlands region.
The background of Salfor Commercial Services can never be complete without mentioning
the great support of Virginia Garikai who is the wife to Fortune and a Non-Executive
Director in the Company. Mrs. Garikai holds a Bachelor of Science &General Degree from
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the University of Zimbabwe. She is in full time employment with Zimasco (Pvt) Ltd and has
worked for the company since 1991 rising through the ranks from S.H.E Officer to Quality
Assurance Manager. Currently she is the managing director of Palm leaf Gardens (Pvt) Ltd.
2.2Objectives of Salfor Commercial Services.

• To be the leading accounting, secretarial, auditing, business solutions services provider


• To increase its clientele aiming due to the increase in the number of SMEs
• To increase the awareness and education of tax compliancy and regulations to SMEs
Vision, mission statement and core values.
i. Vision
To be the premier accounting firm in the Midlands region and recognized leader of
accounting services in Kwekwe. Our services should be the services of choice for every
company or individual.

But Salfor realize a vision is nothing without a team of dedicated and well-groomed
employees. The firm encourages employees to develop their dreams in an environment that
allows carrier growth and stresses the importance of a balance between an employee`s
professional and personal life. The business’s management is committed to its development
and to the delivery of value to its clientele and other stakeholders. The strategy to achieve this
is well defined and comprises three principal elements.

 Maintaining and developing its market position.


 Growing profitability and reducing costs across the business.
 Being alert to and adopting technologies to enhance service
quality.
ii. Mission Statement
Committed to maintaining the highest standards of integrity and professionalism relationship
with clients and provide dependable and quality service of accounting and tax preparation
assistance to all sectors of industry, commerce, and individuals.
iii. Core Values
• Honesty and integrity
• Accountability
• Self-regulation

Honest and Integrity


The director and employees of SCS are devoted to be always fair, honest and
truthful in dealing with clients and stakeholders. We believe that nothing is
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more important than our reputation, and behaving with the highest levels of
integrity is fundamental to who we are. We demonstrate a strong commitment
to sustainable, responsible business practices.
Accountability
To be accountable for the work, for instance in case of omission. This personal
accountability is closely tied to honesty and integrity, and it's a vital value to
the success of the firm.
Self control
The firm encourages its workers to exhibit a high degree of emotional
intelligence (EI) by considering the emotions and needs of its client’s. This
attribute means employees need to also stay professional under pressure. For
instance, when faced with an irate client, instead of getting upset or angry in
return, the SCS exhibits true self control by maintaining a calm, business-like
demeanours.
i. Attributes
• Quality

• Personalized services

• Responsiveness

• Specialized knowledge

• Competency

Quality

The firm's reputation reflects the high standards they demand of themselves. SCS
primary goal as a trusted advisor is to be available to provide insightful advice to
enable their clients to make informed financial decisions. They do not accept anything
less from themselves and this is what they deliver to their clients. The Company feels
it is extremely important to continually and professionally educate to improve their
technical expertise, financial knowledge and service their clients. SCS`s high service
quality and "raving fan" clients are the result of its commitment to excellence.

Personalized services
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This relates to significant amount of time the firm spends working with its clients to
understand their unique needs. SCS try to meet interest in each and every client to
ensure it understand personal and firm goals, market nuances and other critical issues
to ensure its solutions have been custom tailored to clients’ needs. The firm’s passion
is helping its clients to move their business forward.
Responsiveness
Salfor Commercial Services is responsive. Companies who choose this firm rely on
competent advice and fast, accurate personnel. The Company provides total financial
services to individuals, large and small businesses and other agency. Client referrals
have fuelled their growth in the recent years. Through hard work, F Garikai and
Company has earned the respect of the business and financial communities. This
respect illustrates their diverse talents, dedication and ability to respond quickly.
Through performance of the firm in recent years there was a significant growth in
the firm’s market share and revenue.

Specialized knowledge
First and foremost, professionals are known for their specialized knowledge. Salfor
Commercial Service`s staff fight to have a deep personal commitment to develop and
improve their skills and the owner Mr. Garikai has the degree and certifications that
serve as the foundation of this knowledge. However, the Company believes that not
all areas demand extensive knowledge to practice successful, and not all professionals
have top degrees in their field. What matters, though, is that these professionals have
worked in a serious, thoughtful and sustained way to master the specialized
knowledge needed to succeed in their fields, and that they keep this knowledge up-to-
date, so that they can continue to deliver the best work possible.
Competency
SCS always strive to provide efficiency and effectiveness in providing services to its
clients thus being competent enough to satisfy their clientele. We play a critical role
in helping clients operate more effectively. We consider this role a privilege, and we
know it requires constant vigilance and unrelenting commitment.

2.3Organisational structure or Salfor Commercial Services


2.4 The various departments/units in the Salfor Commercial Services and their
functions
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i. Tax Department:

The department keeps abreast of current tax laws and provides tax planning services
throughout the year. When it's time to file tax returns, the client provides the information and
the department. Clients have the confidence that tax returns are prepared accurately and filed
on time.

ii. Audit Operations Department

The Audit operations department is responsible for auditing Salfor Commercial Services
clients` financial statements that is the verification of the financial statements of a client, with
a view to express an audit opinion that is intended to provide reasonable assurance that the
financial statements are presented fairly, in all material respects, and/or give a true and fair
view in accordance with the financial reporting framework.

The operations of this department are not only limited to auditing of financial statements but
also reviewing accounting information systems and internal controls of clients. This
department develop tailored Internal Control Checklists to assist clients assess internal
controls in their operations. Regardless of our clients’ choice, all services provided in this
department are handled with the strictest confidentiality.

i. Company Secretarial Services

This department is into handling various tasks involved in Company. The duties of this
department comprise of company registration and maintenance of statutory records required
by the companies act such as submission of companies’ annual returns and submission of
changes in address, ownership, directorship and company resolutions to the registrar of
companies.

ii. Accounting Department

At its most fundamental, accounting is the development and communication of the financial
and operational information necessary for management decisions in both the private and
public sectors. Accounting seeks to measure the results of an organization's economic
activities and convey this information to management, investors, creditors, regulatory
agencies, consumers, and employees. Under this broad definition lies the accounting
department of SCS.
iii. PRAZ registration
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PRAZ is the Procurement Regulatory Authority of Zimbabwe. PRAZ is responsible for


controlling and regulating the procurement processes of government departments, ministries
and parastatals. In order to be able to participate in public tenders and to supply the
government and any agencies or institutions that the government controls, you need to have
registered with PRAZ for the category of goods/services under which that tender falls

Advantages of PRAZ Registration

• Participate in government and public tenders

• Capitalize on massive business from the government

• Get a competitive edge in your industry by dealing with and supplying the government
since government entities represent big business opportunities

Requirements for PRAZ registration

• Certificate of Incorporation, CR6, CR14 and Articles and Memorandum of Association for
a private limited company

• Company Profile

• Contact Details (E-Mail & Telephone

CHAPTER 3: WORK PLAN


Salfor Commercial Services aims that at the end of each trainee industrial attachment should
be to;

• Filing company and tax documents


• Company registration
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• Filing PAYE returns


• Income statement
• Cash flow statement
• Statement of financial position
• Allocation and preparation of income and expenditure
• Quarterly Payments Dates (QPDs)
• Tax clearance
• Capital Gains Tax (CGT)
• VAT Registration Process
• Filing NSSA contribution
• Register an employee on NSSA
• Preparation of NSSA P4 forms

CHAPTER 4: WORK ACCOMPLISHED

4.1 Filing of tax and company documents


The firm does book keeping for its clients. These mainly fall in two categories company
documents and documents relating to taxation. The writer was assigned to file documents
which include tax clearance, return remittance, payee returns, capital gains. Company
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documents. During the internship period the writer did filing of receipts, transfers of NSSA,
ZIMRA, ZIMDEF so they can be easily accessed when need for instance during audits by
NSSA and ZIMDEF. These tasks of filing documents help trainee to have skills in filing
which is a part of bookkeeping. This is important for instance it is a statutory requirement to
keep records used to claim tax such as receipts for a period of up to 6 years which means
there is a need a to have skills in filling so that when they are requested it can be easy to find
them. Receipts were in demarcation of USD and ZIG. The writer benefited because he was
able to keep documents in a safe place and able to find them easily and quickly. These
documents were filled in files and this makes documents to be safe and will not easily tear,
get lost or dirty. Filing helps to be organised, systematic, efficient and transparent.

Figure 1.4

4.2 Accounting Department

4.2.1 Income Statements


The writer was assigned to gather all income information necessary to prepare income
statement at the end of the year 2024. The information includes all monthly;
 Revenue
 Cost of goods sold such as
 Gross profit
 Operating expenses incurred such as salaries, advertising and water,
 Operating income,
 Other income such as interest income,
 Other expense for example interest expenses and losses on disposal of an asset
 Income before tax
 Income tax expenses
 Net income
The information gathered by the writer helps to compare client’s performance with past
periods, assess how the company is generating profit and to make k financial decisions.

4.2.2 The Cash Flow Statement


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The writer was delegated to collect information need to prepare cashflow statement. The cash
flow statement is a financial document that provides a detailed analysis of cash inflow and
outflow of a company over a specific period. It is categories into three sections:
i. Operating activities is the section of a company’s cashflow statement that represent the
amount of cash a company generates from carrying our its daily activities over a period
of time. It includes;
Cash inflow -cash received from customers, dividends, and interest,
Cash outflow -cash paid by supplies, interest, and taxes.
iv. Investing activities is the section of cashflow statement that reports the inflow and
outflow resulting from the investment. The activities involve;
Cash inflow- cash received from disposal of investments assets such as property and
equipment,
Cash outflow – cash paid for purchasing an asset or investments.
v. Financing activities is the section of cash flow statement that show net flows of the cash
that that is used to fund the company. It includes;
Cash inflow –cash received from issuing of shares and proceeds from long-term debts,
Cash outflow –repayment of long-term debts and dividend paid.
vi. The cash flow shows the increase or decrease of the entity’s cash and cash equivalents,
Cash and cash equivalents comprise cash in hand, deposits held at call with bank, bank
overdraft, short term borrowing and investments in money market instruments.
4.2.3 Statement of financial position
The trainee was assigned to draft the statement of financial position using available details as
at 30 September 2024.Statement of financial position is a summary of company’s assets,
liabilities and equity on a particular date. Salfor commercial services prepare their statement
as at 31 Dec every year. According to IAS 37 defines;
Asset is a resource controlled by the entity as a result of past events from future economic
benefits are expected to flow to the entity.it is categorised into:
 Current assets are resources expected to be converted into cash within 12 months such
as cash, cash received, inventory and prepaid expenses,
 Non-current assets are long-term investments and resources that will be used for more
than 12 months such as plant, property and equipment (PPE), intangible assets
(goodwill)and investments’.
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Liability is a present obligation of the entity arising from the past events, the settlement of
which is expected to result in an outflow from the entity of resources embodying economic
benefits.it is categorised into;
 Current liabilities are obligations due to be settled within a year such as account
payables, accrued expense and short-debts,
 Non-current liabilities are long-term obligations that are due beyond one year such as
long-term loans and deferred tax liabilities (amount of income taxes payable in future
period in respect of taxable temporary differences).
Equity is the residual interest in the asset of the entity and deduction of liability for example
retained earnings and common stock.
4.3 Tax Department
4.3.1 Payee duties
The writer submits payee returns on ZIMRA portal every month. He was given a list of
clients which was supposed to do their return for payee. The due date for remittance of PAYE
is the 10th of the following month and such remittance should be accompanied by a Form P2
failure will results in penalties. Trainee had a list of clients in which he supposed to make
sure that before 10TH of the previous months he had submit on the portal

The Pay as You Earn (PAYE) system is a method of paying Income Tax on remuneration.
The employer is mandated to deduct tax from salary or pension earnings before paying out
the net salary or pension. Income tax act chapter (23:06) thirteenth schedule requires an
employer to withhold and remit employees tax (PAYE) in accordance with the tax deduction
tables as prescribed by ZIMRA.

There are separate payee tax tables for foreign currency (USD) and local currency (ZIG$)
used to calculate payee. The currency of remuneration determines the tax table to be used by
the taxpayer. Highlighted below are quick insights of the USD and ZIG$ tax tables foreign
Currency (USD) Tax Tables for 2024. Tax free threshold is $840usd per annum or 70usd per
month, exempt bonus 320usd per annum. Zimbabwean dollar (ZIG$) tax tables for 2024
tax free threshold is ZIG $ 120,000.0 per annum or ZIG $10,000 per month, exempt bonus is
ZWL$25,000 per annum

 PAYE is calculated as follows:


 Determine gross income for the day/week/month/year.
 Deduct exempt income, for instance bonus and get income
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 Deduct allowable deductions, e.g. pension:


 Use the current tax table to calculate PAYE due.

Every business person who becomes an employer is required to apply to the Commissioner
General for registration within 14 days of becoming an employer. The company also
facilitates the submission of the ITF 16 return which contains details on annual earnings,
deductions, credits and PAYE for each employee within 30 days after the end of the year.

4.3.2 Preparation of NSSA P4 forms


Trainee was tasked to calculate contribution to NSSA and complete NSSA P4 forms on each
month. Currently the Employer and Employee contribute an equal amount of 4.5% of an
insurable earnings ceiling of $700 USD or ZIG that is equivalent to $700 USD. The
employer deducts the contribution due from each employee’s salary and also contributes
an equal amount for each Employee per month. These deductions are made for all
employees below the age of 65. These forms are created on every month. trainee was
involved in the process of calculating NASSA amounts and the preparation of P4 forms.
4.3.3 Register an employee on NSSA
The trainee was assigned to add a client to the NSSA employee list. The employee
needs to be registered first. The trainee login using client’s email address and password.
After she was successful login, she went under employee management then click
register employees. Afterward she fills in needed information such as personal details,
contact details and employment details.
4.3.4 Filing NSSA contribution
NSSA contribution are submitted monthly. The trainee was assigned to file NSSA
contribution. During the filing NSSA contribution template is upload as a proof of
information filled in. when NSSA submitted and shows red on the page it means there is
an error(s) that need to be amended, if the page is green, it means the NSSA
contribution filed was successful.

4.3.3 Income tax self-assessment form


The writer during his internship complete income assessment forms either manually or
electronically. The writer was during his internship was tasked to complete the Income Tax
Self-Assessment Return [ITF 12C] and e-filing on ZIMRA portal. This return should be
completed in full and submitted online through e-services. These should be submitted by the
30th April of each year. The return is for use by both companies and individuals. The Self-
Assessment Return is subject to audit. Attachments were attached as supporting documents
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such financial statements to the self-assessment return. However, all turnover (export)
exchange rates. All export earnings are converted to United States dollars using the average
annual cross rate for that particular year.

4.3.4 Value Added Tax (VAT)


According to chapter 23.12 section 6 vat is shall be charged, levied and collected, for the
benefit of the Consolidated Revenue fund. chapter (23.12) section 14 (1) states that a
registered operator shall account for tax payable in accordance with section 15. Calculation
of tax payable by a registered operator shall be calculated by accordance with this section in
respect of each tax period during which he has carried on a trade in respect of which he is
registered or is required to. However, because of the above statutes the firm calculates and
file returns for each tax period for its clientsValue Added Tax (VAT) is invoice based and is
accounted for on both cash and credit transactions.

Trainee was tasked to record valid tax invoice and calculate vat for every tax period during
the internship, complete the return remittance for vat each month before due date that is 25.
the returns for remittance can be either payable or refund . The vat payable is the difference
between output tax and input tax. Output tax is the tax charged on taxable supplies made
while input tax is the tax incurred by the registered operator on the acquisition of taxable
supplies of goods and services. Only registered operators are required to charge vat and are
entitled to claim input tax on purchases of goods and services which are for use in making
taxable supplies. In order to claim the input tax, a registered operator must be in possession of
a valid tax invoice or fiscal tax invoice. Invoice records and any other business records as per
requirement should be kept for a minimum period of six years and the Commissioner General
of ZIMRA may request such records for any verifications. Tax invoices are very important in
Value added tax. However, not all receipts are tax invoices. A tax invoice is a legal document
that a seller submits to a customer in which the tax is included. A registered operator who
supplies taxable goods/services is required to issue the recipient with a tax invoice/fiscal tax
invoice within 30 days from the date of such supply.

For VAT purposes, not all invoices will be accepted by the Zimbabwe
Revenue Authority as tax invoices. Features of a valid tax invoice
determined when recording and calculating VAT
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• The words tax invoice or fiscal tax invoice should be in a prominent place
• The name, address and vat registration number of the supplier
• The name and address of the recipient and, if recipient is a registered operator,
the vat registration number of the recipient
• Serialized number and the date on which the invoice is issued
• Description of the goods or services supplied
• Quantity or volume of the goods or services supplied
• Value of supply, price charged or consideration of the supply
• A fiscal tax invoice should also include any other words or phrases employed
under the fiscal recording regulations denoting an invoice used to account for
taxable supplies

Value added Tax (VAT) is a consumption tax that is assessed on products at each stage of the
production process from labour and raw materials to the sale of the final product. Output tax
and input tax, Output tax is the VAT charged on the sale of goods or services from business,
if it is VAT-registered. Input tax is the VAT charged on the sale of goods or services to
business, if it’s VAT-registered. VAT is calculated as the difference between the output tax
and the input tax. The following figure shows the calculation of VAT.

Trainee calculates Input tax and output tax on a monthly basis for vat registered clients. After
netting off output and input tax firm advise the client of the tax payable of tax refundable.
Tax is payable when input tax is greater than output tax and the opposite is true for tax
refundable. If the is a refundable a vat refundable form is completed and submitted to
ZIMRA together with input and output schedules.
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4.3.5 VAT Registration Process


The writer was involved in registration of clients for vat. A trader is liable to register for VAT
purposes if the value of taxable supplies exceeds or is expected to exceed $25,000 or ZIG
equivalent within a period of 12 months. In cases where the operator has reached/exceeded a
turnover of $25,000 or ZIG equivalent but failed to register, the Commissioner General of the
Zimbabwe Revenue Authority (ZIMRA) may compulsorily register the operator. The
operator would be required to pay the VAT due, interest and penalties on the computed debt.
Failure to register for VAT constitutes an offence in terms of the VAT Act (Chapter 23:12).

The following are requirements need for a business to be able to register for VAT

• Must be registered with ZIMRA having a BP number


• Payments for all tax heads must be up to date
• Fully completed REV 1 FORM (download from www.zimra.co.zw)
• Sales Invoices from the time of commencement of trade to date showing
customers’ name telephone numbers OR confirmed and signed contracts
• Sales Projections schedule for the next 12 Months
• Current Stamped bank Statement
• Letter appointing public officer
• Valid lease agreement in the company name (if property is rented) or title deed
(if property is owned.
• Sales Schedule from Commencement of trade to date

In the case of a company


• Certificate of Incorporation
• Memorandum and Articles of Association
• CR6
• CR 14
• Copy of identity documents for at least two directors
• Letter appointing Public Officer and confirmation that the person has got
signing powers to the bank accounts

Upon registration, every registered operator will be issued with a certificate of registration
and such certificate shall be displayed prominently. This will allow for easy identification of
traders registered for VAT.
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The firm advises all clients who are excluded from registration

• That is traders who will be solely dealing in exempt supplies


• any person conducting private or recreational pursuit or hobby
• any service provided by an employee to his employer or small traders whose
taxable turnover is below $25,000 or equivalent ZIG per annum.

It is also the responsibility of this section of the taxation department to make sure that all the
responsibilities of a registered client are met and the requirements of the VAT Act. Any
person who carries on trade in taxable supplies and whose annual taxable turnover exceeds or
is likely to exceed must apply to1 million register for VAT on Form VAT1.

Responsibilities upon registration include


• Keeping accounting records for a period of at least six (6) years after the tax
period to which the period relates.
• Completing and submitting VAT returns even if you do not owe ZIMRA, will
advise frequency of submitting the returns though most clients submit returns
either monthly or after every two months.
• Calculating and remitting the VAT due to the Commissioner on or before the
due date.
• With effect from 1st January 2012, the due date for the submission of VAT
returns and payment has been extended from the 20th to the 25th of the month
following the end of the tax period
• Advising ZIMRA of any change in business details, including address,
addition of/or change of partner, cessation of trade
• Allowing ZIMRA officials to enter your business premises and examine goods
and all business records.

4.3.6 Capital Gains


Trainee was involved in the process calculating capital gains during internship period.
Capital Gains Tax (CGT) is an amount levied on the capital gain arising from the disposal of
a specified asset in terms of section 6 of the Capital Gains Tax Act [Chapter 23:01]. Specified
assets mean immovable property (land and buildings) and any marketable security
(debentures, shares, unit trusts, bonds and stocks). Valuations for purposes of determining the
values of the assets will also be required by the taxing authority (ZIMRA), together with
proof of payment for the property (if case of a sale).
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The Seller of a specified asset has the obligation to pay Capital Gains Tax when disposing of
a property. However, the Seller may be exempted from paying Capital Gains tax in certain
specified instances. Some of the exemptions are set out below;

 Where the property is the primary residence and the seller is over the age 55.
 A sale by Executor out of a deceased estate.
 Transfers of any specified assets between spouses.
 Transfer of principal private residence between former spouses following a divorce
order
4.3.7 Tax clearance
The writer was involved in the process of tax clearance. The firm helps its clients to obtain
valid tax clearance certificates from ZIMRA as proof of tax compliance tax clearance is the
process by which the tax authority (ZIMRA) verifies whether a business entity is in good
standing with regards to tax payment. However, tax clearance certificate is issued as proof of
this good standing. It also helps its clients to open bank accounts for companies since the law
requires banks to open accounts for companies with tax clearance. Tax Clearance Certificate
is a certificate issued by the Commissioner General of the Zimbabwe Revenue Authority
(ZIMRA), to a person liable to pay tax, provided that the taxpayer’s tax position is
satisfactory. Some companies can be given a tax clearance for the whole year other only for
months this will depend on how the company pays its tax to ZIMRA.

4.3.8 Quarterly Payments Dates (QPDs)

The writer was involved in the process of calculating QPDS. Registered operators are
required to keep records of all business operations and pay Provisional Tax on the stipulated
dates. The dates are referred to as Quarterly Payment Dates (QPDs). The Provisional Tax
payable is based on the respective percentage of estimated annual tax due. The annual
estimated tax due should be revised to update the estimate every quarter. It is the
department`s role to keep clients records, with the help of clients estimate annual tax and
advice clients what they are supposed to pay and the due dates for the payments. QPDs are
quarterly payment dates and these are the dates throughout the year on which tax is paid. Tax
is paid provisionally and the provisional Tax payable is based on the respective estimated
annual tax due. The ITF 12B form, which is a return for provisional tax payments, has to be
completed in respect of these payments.

The payment dates and the percentage of tax due for each tax year are listed below:
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Quarterly Payment Dates (QPDs) Instalment Due


(as a % of the annual tax
payable

1st QPD 10% 25th March

2nd QPD 25% 25th June

3rd QPD 30% 25th September

4th QPD 35% 20th December

4.3.9 Withholding tax


The author was involved in calculation and filing of withholding tax. WHT is in terms
Section 80 of the Income Tax Act (Chapter 23:06) and in terms of the same section, a 10%
withholding tax is deductible from all amounts payable to all persons who enter into contracts
without a valid tax clearance certificate (ITF 263). [Section 80 (2)]
This applies to persons who enter into contracts with the State or a statutory body, a quasi-
Government institution and taxpayers who are registered with the Zimbabwe Revenue
Authority. Failure to withhold tax as mandated by the Act is an offense at law. It is important
to register with ZIMRA and comply with the tax laws and obtain a valid tax clearance
certificate to avoid the 10% WHT on contracts. Where a trader has withheld any amount in
terms of subsection (2) of the Act, he shall furnish the payee concerned with a certificate, in a
form approved by the Commissioner, showing the amount so withheld. It is an offense to
withhold tax and then fail to remit the tax so withheld to ZIMRA. Withholding tax returns
therefore have to be filed and the tax withheld has to be remitted. It is important to comply
with WHT legislation as failure to do so has punitive implications.
4.3.10 Company Registration
The trainee was assigned to register a new client on ZIRMA Self Service Portal (SSP), in
order to get registered client’s information such as name, identification number, email
address, username, date of birth and nationality. ( www.zimra.co.zw).
4.3.11 Allocation and preparation of income and expenditure
The writer was involved in the allocation of expenses of different clients which include

mining, construction, tourism industry. These expenses were allocated according to their use.
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One of the categories include teas and cleaning, rent, consumables, repairs and maintenance.

This will help to determine the total expense of providing products or services.

4.4 Other Activities assigned to the trainee

1. Paying client’s domestic tax

2. Buying electricity for Salfor Commercial Service

3. Buying WIFI at TelOne

4. Collecting invoice books

5. Collect CGT assessment at ZIMRA

6. Filing invoices for services rendered to a client


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CHAPTER 5: SUMMARY, CONCLUSION AND RECOMMENDATIONS

5.1 Summary of activities carried out


5.2 Problems encountered to date during work related learning
5.3 Suggestions for improvement for Salfor Commercial Services
5.1 Summary of activities carried out

• Filing company and tax documents


• Company registration
• Filing PAYE returns
• Income statement
• Cash flow statement
• Statement of financial position
• Allocation and preparation of income and expenditure
• Quarterly Payments Dates (QPDs)
• Tax clearance
• Capital Gains Tax (CGT)
• VAT Registration Process
• Filing NSSA contribution
• Register an employee on NSSA
• Preparation of NSSA P4 forms
• Paying client’s domestic tax
• Buying electricity for Salfor Commercial Service
• Buying WIFI at TelOne
• Collecting invoice books
• Collect CGT assessment at ZIMRA
• Filing invoices for services rendered to a client
5.2 Problems encountered to date during work-related learning
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