Is VAT required on quotations in Zimbabwe?

If your business is registered for VAT with ZIMRA (mandatory for businesses with annual turnover exceeding the VAT threshold), you must include VAT at 15% on your quotations. Show the subtotal, VAT amount, and total inclusive of VAT separately. If not VAT registered, state 'VAT not applicable' on the quotation.

Is a quotation legally binding in Zimbabwe?

A quotation is an offer, not a binding contract. It becomes binding once the client formally accepts it (in writing, by signing, or by placing an order based on the quotation). Until acceptance, the supplier can withdraw or amend the quotation. Once accepted, it forms the basis of a contract and both parties are bound by its terms.

Quotation Template Zimbabwe — Free Business Quote Template & VAT Guide

Q: What is the difference between a quotation and an invoice?

A quotation is an offer to provide goods or services at a stated price. It is issued before the work begins. An invoice is a demand for payment issued after the goods have been delivered or services rendered. A quotation becomes binding once accepted by the client, while an invoice records a completed transaction.

Q: How long should a quotation be valid?

There is no legal requirement, but standard practice in Zimbabwe is 14 to 30 days. Given currency fluctuations and inflation, shorter validity periods (14 days) are recommended. After the validity period expires, the supplier may revise the prices. Always state the validity period clearly on the quotation.

Q: What currency should I quote in?

You may quote in USD, ZiG (Zimbabwe Gold), or both. Given Zimbabwe's multi-currency environment, many businesses quote in USD for stability. If quoting in ZiG, include a clause about exchange rate adjustments. For cross-border transactions, quote in the agreed international currency.

What Is a Business Quotation?

A business quotation (also called a quote or estimate) is a formal document issued by a business to a prospective client, offering to supply goods or services at a specified price. It details the items or services being offered, quantities, unit prices, applicable taxes (VAT), and the total cost. A quotation is essentially an offer — it becomes a binding agreement once the client accepts it.

In Zimbabwe's business environment, professional quotations are essential for winning contracts, managing client expectations, and maintaining clear financial records. Whether you are a construction company in Harare, an IT service provider, a catering business, a printing company, or a freelance consultant, issuing well-structured quotations projects professionalism and helps you close deals.

A proper quotation also serves as a financial record for both the supplier and the client, and is important for tax purposes, particularly in relation to VAT (Value Added Tax) obligations under the Value Added Tax Act [Chapter 23:12] as administered by ZIMRA.

Quotation vs Estimate: A quotation is a fixed-price offer — the price should not change once accepted (unless the scope changes). An estimate is an approximation of cost that may vary. In Zimbabwe, most formal business transactions use quotations rather than estimates. Always use the word “Quotation” on the document to indicate it is a firm offer.

When Do You Need to Issue a Quotation?

Responding to a request for quotation (RFQ) — From government, corporate, or individual clients
Tendering for contracts — Public and private sector tenders require formal quotations
Before starting any project — To agree on scope and price with the client
Retail and wholesale supply — Offering products to businesses or resellers
Service provision — IT support, consulting, maintenance, construction, transport
Government procurement — Required by the Procurement Regulatory Authority of Zimbabwe (PRAZ)

What Must Be Included in a Quotation

Element	Details
Your Company Details	Company name, address, phone, email, logo, registration number, VAT number
Client Details	Client's company name (or individual name), address, contact person
Quotation Number	Unique reference number for tracking (e.g., QT-2026-0042)
Date	Date the quotation is issued
Validity Period	How long the quotation remains valid (typically 14–30 days)
Itemised Products/Services	Description, quantity, unit price for each line item
Subtotal	Sum of all line items before VAT
VAT	15% of subtotal (if VAT registered)
Total	Subtotal + VAT (the amount the client will pay)
Payment Terms	When and how payment is expected
Terms & Conditions	Delivery, warranty, cancellation, liability clauses
Bank Details	For payment by bank transfer

VAT on Quotations in Zimbabwe

Under the Value Added Tax Act [Chapter 23:12], businesses with annual taxable turnover exceeding the VAT registration threshold must register for VAT with ZIMRA and charge VAT at 15% on taxable supplies.

If your business is VAT-registered:

Show the subtotal (price before VAT)
Show the VAT amount (15% of subtotal)
Show the total inclusive of VAT
Include your VAT registration number on the quotation

If your business is not VAT-registered, state “VAT not applicable — not registered for VAT” on the quotation. Do not charge VAT if you are not registered, as this is an offence.

Zero-Rated and Exempt Supplies

Some goods and services are zero-rated (0% VAT) or exempt from VAT. These include certain basic foodstuffs, exports, medical supplies, and educational services. If your supply is zero-rated, still show the VAT line but at 0%.

Free Business Quotation Template

[YOUR COMPANY NAME]

[Physical Address Line 1]
[Physical Address Line 2]
[City, Zimbabwe]

Tel: [Phone Number]
Email: [Email Address]
Web: [Website URL]

Reg No: [Company Registration Number]
VAT No: [VAT Registration Number]
BP No: [Business Partner Number]

QUOTATION

Quotation No: [QT-2026-____]

Date: [DD/MM/YYYY]

Valid Until: [DD/MM/YYYY]

QUOTATION TO:

[Client Company Name / Individual Name]
[Client Address]
Attention: [Contact Person]
Tel: [Client Phone] Email: [Client Email]

RE: [Brief description of goods/services being quoted, e.g., “Supply and Installation of Office Furniture”]

#	Description	Qty	Unit	Unit Price (USD)	Amount (USD)
1	[Product/Service Description]	[___]	[Each/Hrs/m2/kg]	[___.__]	[___.__]
2	[Product/Service Description]	[___]	[Each/Hrs/m2/kg]	[___.__]	[___.__]
3	[Product/Service Description]	[___]	[Each/Hrs/m2/kg]	[___.__]	[___.__]
4	[Product/Service Description]	[___]	[Each/Hrs/m2/kg]	[___.__]	[___.__]
5	[Product/Service Description]	[___]	[Each/Hrs/m2/kg]	[___.__]	[___.__]
Subtotal:					USD [___.__]
VAT (15%):					USD [___.__]
TOTAL (incl. VAT):					USD [___.__]

PAYMENT TERMS:

(a) Payment is due within [14 / 30] days of acceptance / upon delivery.
(b) A deposit of [50]% is required upon acceptance. Balance due [on completion / upon delivery].
(c) Payment may be made by bank transfer, EcoCash, or certified cheque.
(d) Bank Details:
Account Name: [___]
Bank: [___]
Branch: [___]
Account No: [___]
Reference: [Quotation Number]

TERMS AND CONDITIONS:

1. This quotation is valid for [14 / 30] days from the date of issue. After this period, prices may be subject to revision.
2. Prices are quoted in USD. If payment is made in ZiG, the prevailing interbank exchange rate on the date of payment shall apply.
3. Delivery: [Specify delivery timeframe, e.g., “within 14 working days of order confirmation”].
4. Delivery charges: [Included / Not included — charged at cost].
5. Warranty: [Describe warranty terms, or state “No warranty unless specified per item”].
6. Cancellation: Orders may be cancelled within [48 hours] of acceptance. Cancellation after production/procurement may incur costs of up to [50]% of the quotation value.
7. Ownership of goods remains with the supplier until full payment is received.
8. This quotation is subject to availability of materials/stock at the time of order.

ACCEPTANCE:

I, the undersigned, accept this quotation and agree to the terms and conditions stated above.

____________________________
Client Signature
Name: _______________
Date: _______________

____________________________
Supplier Signature
Name: _______________
Date: _______________

Download Free Quotation Template

Get this template in editable format for your business

Request at RegisterCompany.co.zw

Step-by-Step Guide to Creating a Quotation

Step 1: Understand the Client's Requirements

Before preparing the quotation, fully understand what the client needs. Ask for specifications, quantities, delivery requirements, and any special conditions. A quotation that does not match the client's requirements will be rejected.

Step 2: Calculate Your Costs

Determine the cost of materials, labour, transport, overheads, and profit margin. Do not underquote to win the job — you need to cover your costs and make a reasonable profit. Do not overquote either, as you will lose to competitors.

Step 3: Prepare the Itemised List

Break down the quotation into clear line items. Each item should have a description, quantity, unit of measurement, unit price, and total amount. This transparency helps the client understand exactly what they are paying for.

Step 4: Calculate VAT

If VAT-registered, calculate VAT at 15% on the subtotal. Show the subtotal, VAT amount, and total separately. Double-check your arithmetic — VAT errors create problems with ZIMRA and with your client.

Step 5: Set Clear Payment Terms

Specify when payment is due, what deposit is required, and accepted payment methods. For large projects, consider stage payments (e.g., 50% upfront, 25% at midpoint, 25% on completion).

Step 6: Set Validity Period

Given Zimbabwe's economic environment, keep validity periods short (14–30 days). This protects you against cost increases between quoting and the client accepting.

Step 7: Review Before Sending

Check all prices, calculations, descriptions, and terms before sending. A professional, error-free quotation builds client confidence.

Common Mistakes to Avoid

1. No Quotation Number

Every quotation should have a unique reference number. This makes tracking, referencing, and record-keeping easy. Use a consistent numbering system (e.g., QT-2026-0001).

2. Vague Descriptions

Do not write “Office supplies — USD 500.” Instead, itemise: “10 x Reams A4 paper @ USD 5 = USD 50; 5 x Ink cartridges @ USD 30 = USD 150” etc. Vague quotations lead to disputes about what was included.

3. Missing VAT

If you are VAT-registered, you must charge and show VAT. If you are not VAT-registered, you must not charge VAT. Either error creates problems with ZIMRA.

4. No Validity Period

Without a validity period, a client could accept your quotation months later when your costs have increased. Always state clearly how long the quotation is valid.

5. No Payment Terms

If you do not specify when payment is due, you cannot enforce timely payment. State clear terms: “50% deposit on acceptance, balance on delivery” or “payment within 30 days of invoice.”

6. Forgetting Delivery Costs

State whether delivery is included in the price or charged separately. Unexpected delivery charges frustrate clients and can derail deals.

Frequently Asked Questions

What is the difference between a quotation and an invoice?

A quotation is issued before work begins, offering goods/services at a stated price. An invoice is issued after delivery/completion, demanding payment. A quotation is an offer; an invoice is a demand.

Is VAT required on quotations?

If your business is VAT-registered with ZIMRA, you must include 15% VAT. Show subtotal, VAT amount, and total separately. If not registered, state “VAT not applicable” and do not charge VAT.

How long should a quotation be valid?

Standard practice is 14 to 30 days. Shorter periods (14 days) are recommended given Zimbabwe's economic environment. Always state the validity period clearly.

Is a quotation legally binding?

A quotation is an offer, not binding until accepted. Once the client formally accepts (in writing, by signing, or by placing an order), it forms a binding contract.

What currency should I quote in?

You may quote in USD, ZiG, or both. Most businesses prefer USD for stability. If quoting in ZiG, include an exchange rate adjustment clause.

Business Quotation Template Zimbabwe