Value Added Tax Act, 1995

This section says how partnerships are treated for supplier status and notices under the Act.

A registered unincorporated organisation must have its management committee members’ names and details recorded in the register.

Two or more companies incorporated in Zambia may be treated as a recognised group if the control conditions are met, and the Commissioner-General has powers to declare, change, or end that group status.

This section says the Act applies to a Government agency as if supplies to it for its official functions were supplies for a business carried on by the agency, unless the Act or regulations already provide otherwise.

A supply of goods or services can be a taxable supply if it is made by a taxable supplier in business, in Zambia, on or after the tax commencement day, and is not exempt.

VAT is charged on taxable supplies in Zambia and on taxable imports into Zambia, with zero-rated supplies excluded.

Tax on taxable supplies and taxable importations is charged at the prescribed rate, which is 20%, unless the Minister sets a lower rate by statutory order. Zero-rated supplies are treated as having a zero rate.

This section sets how to calculate taxable value for goods and services, and when goods are treated as supplied in Zambia. It also lets the Commissioner-General issue an administrative rule where the place of supply is doubtful or unfair.

This section sets rules for when services are treated as supplied in Zambia for tax purposes, and lets the Commissioner-General issue an administrative rule in doubtful or anomalous cases.

This section sets the tax time of supply for goods and services and lets the Commissioner-General make special administrative rules where the normal rule is doubtful or unfair.

For tax purposes, goods are treated as imported into Zambia when they are regarded as imported under the Customs and Excise Act.

Some listed supplies and imports are exempt from taxation, and some listed supplies are zero-rated unless they are already exempt.

Every taxable supplier must file a tax return with the Commissioner-General for each prescribed accounting period, normally within 21 days after that period ends.

A taxable supplier who files a return late must pay additional tax.

Registered suppliers may deduct or credit input tax only if they have the required evidence and stay within the time limit.

A taxable supplier must pay any tax due for the period on time, and the Commissioner-General must pay a supplier’s excess credit within 21 days of the specified trigger.

If tax due under the Act is not paid on time, interest becomes payable on the unpaid amount at the prescribed rate.

The Commissioner-General may assess tax and interest due from a taxable supplier in certain default situations, must notify the supplier, and may revise the assessment within the stated time rules.

Tax and related interest can be recovered in court by the Commissioner-General or an authorised officer.

If a taxable supplier still owes tax or interest, the Commissioner-General may serve written notice on certain other people to pay money to satisfy that debt.

The Commissioner-General may require a registered supplier to produce documents or provide security before allowing or repaying input tax, if needed to protect revenue.

If the Commissioner-General believes a taxable supplier may not pay tax or interest on time because assets were lost, transferred, or disposed of, the Commissioner-General may require immediate payment by written notice.

If a taxable supplier has unpaid tax or interest, an authorised officer may levy distress on the supplier’s goods and chattels under warrant from the Commissioner-General.

The Commissioner-General can decide what supplier details must be kept in the supplier register, and can make rules requiring registered suppliers to report changes.

Suppliers in Zambia must apply for registration once their taxable turnover exceeds the Minister’s prescribed threshold, and the Commissioner-General must register qualifying applicants.

A supplier who must register, breaks registration conditions, or falsely claims to be a taxable supplier commits an offence and may be fined, imprisoned for up to 12 months, or both.

Creates the Value Added Tax Appeals Tribunal and gives the Minister powers over appointments, regulations, removals, and allowances.

A person affected by certain Commissioner-General decisions may appeal to the Tribunal, but only in the manner and time prescribed by regulation.

The Tribunal must hear and determine the appeal and may confirm, reverse, or vary the Commissioner-General’s decision. If the appeal is allowed, the Commissioner-General must give effect to the Tribunal’s decision. The Authority must pay interest on certain appeal deposits, at the prescribed rate and in the prescribed manner.

The Authority must administer the Act, collect tax, and send tax collected to the Treasury as soon as reasonably practicable, unless subsection (2) applies. The Minister may approve a reserve account at the Bank of Zambia.

The Commissioner-General has the powers and functions given by this Act and may delegate his functions to the Commissioner of Value Added Tax or other officers of the Authority.

Authorised officers must carry identification and produce it on demand when exercising a power under the Act.

An authorised officer may take necessary samples from goods for tax purposes, but must issue a receipt, follow the Commissioner-General’s directions on disposal and accounting, and the Authority must compensate the person if a sample is not returned promptly and in good condition.

People involved in supplying goods or services must give the Commissioner-General specified information and, on demand, produce related documents for an authorised officer.

An authorised officer may enter and search business premises, and a magistrate may issue a warrant for searches where tax evasion or evidence of an offence is suspected.

This section is headed as dealing with authorised officers’ immunity, records and accounts, and false returns or statements.

A person who fails to comply with requirements under section 37, or who assaults, obstructs, hinders, or resists an authorised officer, commits an offence.

Impersonating an authorised officer is an offence punishable by a fine, prison, or both.

A taxable supplier must keep and preserve business records for 5 years, unless the Commissioner-General requires a longer period in writing.

A person who, while trying to comply with a requirement under the Act, makes a materially false return, declaration, document, statement, or information commits an offence and may be fined or imprisoned.

This section makes fraudulent tax evasion or recovery an offence, and also penalizes dealing in goods or services when there is reason to believe tax has not been or will not be paid or credits are falsely claimed.

The Commissioner-General may impose a specified fine on an alleged offender if the offender agrees and the fine does not exceed the Act’s maximum penalty, subject to written consent from the Director of Public Prosecutions if criminal proceedings have already started.

Advertisements for retail goods or services that mention a price must state that price inclusive of tax.

If tax changes after a contract for goods or services is made but before supply, the price must be adjusted for the tax amount unless the contract says otherwise.

If an individual is declared bankrupt, tax and interest due under the Act take priority over other proven debts.

A certificate of the Commissioner-General is enough evidence of the stated fact unless the contrary is proved.

The Minister may make regulations under the Act, and those regulations may create offences and set penalties up to ten thousand penalty units.

The Commissioner-General may make and publish administrative rules in the Gazette.

Suppliers meeting the turnover trigger must apply for registration, and the Commissioner-General must register qualifying applicants.

Some suppliers may get tax relief for certain stock, if the Minister sets it by regulation.

This provision says the Sales Tax Act and the Insurance Levies Act are repealed on the tax commencement day, and it lists exempt supplies and imports in the First Schedule.

This section is about the supply of fertilizers and pesticides for agricultural use.

This section lists health supplies, including medical services, medicines and drugs, certain medical or prosthetic equipment, and articles for use by blind or disabled people.

This section lists educational services for primary or secondary students, educational services for other students when not provided for profit, and certain printed materials.

This section describes what counts as transport services: road transport of persons by licensed buses or coaches with at least 14 adult seats, air transport on scheduled scheduled flights, and rail transport of persons.

This section concerns the sale or lease of an interest in land and of domestic buildings.

This section lists activities that count as financial and insurance services, including insurance, dealing with money or foreign exchange, providing credit, and operating bank or similar accounts.

This provision defines “Gold” and “Funeral services” for the section.

This section lists lawful gaming and betting supply activities: accepting bets or wagers, issuing lottery tickets in a lawful lottery, and using lawful gaming machines.

This section exempts certain imports and supplies, including goods imported by the President, diplomatic imports for official mission purposes, and supplies under a technical aid agreement.

Travellers’ effects are goods that qualify for a duty rebate under regulation 15, subject to the same limitations and conditions.

This provision defines a category of services: transport and ancillary services directly linked to exporting goods under item 1.

This provision refers to goods supplied by an approved duty free shop for export by passengers to destinations outside Zambia.

This provision concerns the supply of goods, including meals, beverages, and duty free goods, for use as aircraft stores on flights to destinations outside Zambia.

This section concerns the supply of services that are physically rendered outside Zambia.