If you have ever wondered how Facebook makes it’s money then wonder no more. They sell ads. You have probably seen promoted posts in your account. Businesses including some Zimbabwean businesses pay Facebook in order for their advertisements to be shown to a targeted group of people. Starting 1 September Facebook is going to make Zimbabwean businesses pay 14.5% VAT on advertisements.

Dear Customer,

Due to implementation of a value-added tax (VAT) in Zimbabwe, Facebook is required to charge VAT on the sale of ads to all advertisers in Zimbabwe. All advertisers with a business country of Zimbabwe will be charged an additional 14.5% VAT on advertising services purchased on or after 1 September 2020.
You don’t have to enter a Zimbabwe tax ID. However, if you’re registered for VAT and provide your tax ID, your tax ID will show up on your ads receipts. This may help you recover any VAT that you paid to Zimbabwe tax authorities if you are a VAT-registered business in Zimbabwe.
How to add your tax ID to your Zimbabwe ad account:
Go to Account settings
Scroll down to the field labelled “Tax ID number”
Add your Zimbabwe tax ID
For additional information, please visit our Help Centre.
Thanks,
The Facebook Business Team

A win for the Zimbabwean government?

The Zimbabwean government has ranted and raved about taxing companies like Facebook who make revenue from Zimbabwe. On the surface of it does seem like a win except it’s not. This is not corporate tax but just VAT. What it means is that Zimbabweans will be paying this tax not Facebook. It’s not clear how many people from Zimbabwe use Facebook ads but it cannot be that much. In anycase it’s very easy to avoid paying this tax. All one has to do is to use a non Zimbabwean address!