Zimbabwe just slapped a 15-percent withholding tax on offshore digital payments starting next year, and Finance Minister Mthuli Ncube said it fixes the problem of foreign platforms dodging local taxes while homegrown businesses get hit with full VAT charges. Banks and mobile money services will automatically pull the tax when people pay for Netflix, Spotify, Amazon Prime, ride-hailing apps, or Starlink before the cash leaves the country.
People are melting down online because some platforms like Starlink and InDrive already charge VAT, which makes this look like double-dipping. Others are talking about grabbing foreign cards to sidestep the whole thing, and the government is basically betting this levels the playing field while plugging revenue holes from the digital economy boom.
People are melting down online because some platforms like Starlink and InDrive already charge VAT, which makes this look like double-dipping. Others are talking about grabbing foreign cards to sidestep the whole thing, and the government is basically betting this levels the playing field while plugging revenue holes from the digital economy boom.
