Current Affairs
Government Clarifies Digital Services Withholding Tax
Finance Minister Mthuli Ncube has clarified how the Digital Services Withholding Tax (DSWT) will work, saying it applies to payments for imported digital services such as streaming subscriptions, ride-hailing platforms, online advertising and satellite internet services.
According to the Minister, the tax is collected automatically by banks and other regulated payment intermediaries at the point of payment, making it easier for Government to collect Value Added Tax (VAT) on digital services bought from outside the country.
Ncube stressed that the DSWT is not a new or additional tax, but a system designed to enforce existing VAT obligations on imported services.
“The DSWT was introduced to improve collection of VAT on imported services,” he said, adding that the measure is meant to safeguard Zimbabwe’s tax base and promote fairness in the tax system.
Government further explained that the tax does not apply to goods, is not limited to international card payments, and is not intended to cause double taxation.