AMD Services (PVT) Ltd v ZIMRA (FA 5 of 2016; HH 344 of 2020) [2020] ZWHHC 344 (29 May 2020)

AMD Services (PVT) Ltd v ZIMRA (FA 5 of 2016; HH 344 of 2020) [2020] ZWHHC 344 (29 May 2020)

The appellant's EPZ status was preserved by the savings provision in s 34(2) of the Zimbabwe Investment Authority Act, but the failure to apply for a replacement licence within the mandatory six-month period under s 37 meant the appellant could not access VAT privileges. Consequently, the appellant was liable for VAT on local supplies for the period in question.

Citation
[2020] ZWHHC 344
Parties
Appellant: AMD Services (Pvt) Ltd; Respondent: Zimbabwe Revenue Authority
Court
Harare High Court
Jurisdiction
Zimbabwe
Judgment Date
29 May 2020
Case Number
FA 5 of 2016 ; HH 344 of 2020
Procedural Posture
Value Added Tax Appeal / Judgment
Outcome
Appeal dismissed
Legal Topics
Export Processing Zones, Value Added Tax, Statutory Interpretation, Licensing, Penalties
Source Language
English
Tax Law Administrative Law Export Processing Zones Value Added Tax Statutory Interpretation Licensing Penalties

Case Brief

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Parties

AMD Services (Pvt) Ltd

Appellant

Zimbabwe Revenue Authority

Respondent

Procedural Posture

Value Added Tax Appeal / Judgment

Legal Issues

  1. 1 Whether the repeal of the Export Processing Zones Act abolished existing export processing zones and related VAT privileges
  2. 2 Whether the penalty imposed was appropriate

Ratio Decidendi

The appellant's EPZ status was preserved by the savings provision in s 34(2) of the Zimbabwe Investment Authority Act, but the failure to apply for a replacement licence within the mandatory six-month period under s 37 meant the appellant could not access VAT privileges. Consequently, the appellant was liable for VAT on local supplies for the period in question.

Court Disposition

Appeal dismissed

Orders

  • The appeal is dismissed in its entirety.
  • The VAT assessments issued by the Commissioner against the appellant on 15 May 2015, for the period April 2009 to December 2009, are confirmed.