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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…

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Jurisdiction
Zambia
Structure
65 provisions
Citation
Act 4 of 1995
Dates
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01

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

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.

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(1) Where an authorised officer has reason to believe that it

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…

Section 36

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Showing 65 of 65 provisions

Provision 45Offence 14Commencement 5Substitution
§ 3(1) Where a finn consisting of two or more individuals inProvision

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

3. (1) Where a finn consisting of two or more individuals in Application of this Act to partnership is a registered supplier, the finn shall be taken, for the partnerships purposes of this Act, to be the supplier of any goods and services supplied in the course of the business of the finn; but in default of such registration, each partner shall be deemed to be the supplier of any such goods and services. (2) Without prejudice to any other law providing for the suffi- ciency of any means of giving notice to a partnership, any notice of assessment or other notice given under this Act to a partnership may be addressed to the partnership in the name under which it is registered under this Act. (3) Subject to this section, in detennining for the purposes of ihis Act whether any goods or services are supplied to, or by, a partnership, no account shall be taken of any change in the partner- ship. '1 (4) Without prejudice to the operation of any law providing for the imposition of liability on members of a partnership, until the date on which a change in the partnership is notified to the Commis- sioner-General, a person who has ceased to be a member of a partnership shall be regarded as continuing to be a partner for the purposes of this Act and, in particular, for the purpose of any liability for tax or interest due from the partnership under this Act. (5) Where a person ceases, for the purposes of this Act, to be a member of a partnership, any notice of assessment or other notice given to the partnership under this Act that relates to any matter- ( a) arising within or in connection with the prescribed accounting period during which he so ceased to be a member of the partnership; or ·:;;; (b) arising within orin connection with any earlier prescribed accounting period during which, or during any part of which, he was for the purposes of this Act a member of the partnership; shall be deemed to have been served on him.
Section 3Verify source
§ 4(1) Where a club, association or other unincorporatedProvision

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

4. (1) Where a club, association or other unincorporated Application of this Act to organisation is a registered supplier, the organisation shall be taken, organi�ations for the purposes of this Act, to be the supplier of any goods and services supplied in the course of the business of the organisation; but in default of such registration, every member of the organisatien shall be deemed to be the supplier,of such goods and services. ' 1; 1: ' I ,., I· ,I I I "i Value Added Tax [No. 4 of 1995 29 (2) The names and other particulars of the members of the management committee of an unincorporated organisation that is a registered supplier shall be recorded in the register, and such members shall bear the liabilities of the organisation under this Act. (3) Until the date on which a change in the management committee is notified to the Commissioner-General, a person who has ceased to be a member of the management committee of an unincorporated organisation that is a registered supplier shall be regarded as continuing to be such a member for the purposes of this Act and, in particular, for the purpose of any liability for tax or interest due from the organisation under this Act. ( 4) Where a person ceases, for the purposes of this Act, to be a member of the management committee of an unincorporated organisation that is a registered supplier, any notice of assessment or other notice given to the organisation under this Act that relates to any matter- ( a) arising within or in connection with the prescribed accounting period during which he so ceased to be a ,..,ember of the management committee; or ( b) arising within or in connection with any earlier prescribed accounting period during which, or during any part of which, he was for the purposes of this Act a member of the management committee; shall be deemed to have been served on him. (5) Where a person is a member of the management committee of an unincorporated organisation during part only of a prescribed accounting period, his liability for tax on the supply by the organisation of goods or services during that period, and any liability for payment of any interest or additional tax as a conse­ quence, shall be limited to such proportion of the organisation's liability as may be just in the circumstances. (
Section 4Verify source
§ 5(1) For the purposes of this Act, two or more companiesSubstitution

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.

5. (1) For the purposes of this Act, two or more companies incorporated in Zambia are eligible to be treated as a recognised group if.- Application of this Act to groups of companies (a) one of them controls each of the others; (b) one person, whether a company or an individual, controls them all; or (c) two or more individuals carrying on a business in partner­ ship control them all. 30 No. 4 of 1995] Value Added Tax (2) On application made by a company naming itself and other companies in the application, or by the person or persons control­ ling the companies named in the application, the Commissioner­ General, if satisfied that the companies named in the application are eligible to be treated as a recognised group, may by notice in writing- (aJ declare that, as from a date specified in the order, they shall fonn a recognised group for the purposes of this Act; and (b) designate the representative member for the group. (3) Where two or more companies fonn a recognised group, then, for the purposes of this Act, any business carried on by a member of ·the group shall be regarded as carried on by the representative member, and- (a) any supply of goods or services by a member of the group to another member of the group shall be disregarded; (b) any other supply of goods or services by or to a member of the group shall be regarded as a supply by or to the representative member; and (c) any tax paid or payable by a member of the group on the .importation of any goods shall be regarded as paid or payable by the representative member, by whom the goods shall be deemed to have been imported. ( 4) Notwithstanding subsection (3), all members of a recognised group shall be jointly and severally liable for any tax due from the representative member. (5) The Commissioner-General may, on application made on behalf of a recognised group, by notice declare that, as from a date specified in the notice- ( a) a further eligible company shall be included in the group; (b) a specified member of the group shall be excluded from the group; (c) another member of the group shall be substituted as the representative member; or ( d) the group shall no longer be a recognised group for the purposes of this Act. (6) An application under this section shall not be refused unless the Commissioner-General considers it necessary to refuse it for the. protection of the revenue. j: ' I ' I;> Value Added Tax [No. 4 of 1995 31 (7) The Commissioner-General may, of his own motion, by notice exclude from membership of a recognised group any com­ pany which has ceased to eligible to be a member. (8) For the purposes of this section- ( a) one company shall be taken to control another if it is empowered by any written law to control the other's activities or if it is the other's holding company within the meaning of the Companies Act, 1994; and (b) one or more individuals shall be taken to control a com­ pany if, apart from being individual, he or they satisfy the criteria for being its holding company under that Act. Act No. 26 of1994
Section 5Verify source
§ 6(1) Exceptto the extentto which provision is otherwise madeProvision

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.

6. (1) Exceptto the extentto which provision is otherwise made by or under this Act, this Act applies to a Government agency as though a supply of goods or services to it for the purposes of the performance of its official functions were a supply of the goods or services for the purposes of a business carried on by it. Application of !his Act to Government agencies (2) The Minister may, by regulation, provide for the modifica­ tion of any provision of this Act, or of any regulation or rule made under this � . ., in its application to a Government agency. PART II VALUE ADDED TAX
Section 6Verify source

Part

PART II

§ 7(1) For the purposes of this Act, any supply of goods orCommencement

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.

7. (1) For the purposes of this Act, any supply of goods or services made by a taxable supplier, in the course of a business, that takes place in Zambia on or after the tax commencement day, other than an exempt supply, is a taxable supply. Taxable supplies (2) Although tax is not payable on a zero-rated supply, the provisions of this Act, apart from section eight, shall otherwise apply to a zero-rated supply in the same way as to all other taxable supplies.
Section 7Verify source
§ 8(1) A tax, to be known as value added tax, shall be charged,Commencement

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

8. (1) A tax, to be known as value added tax, shall be charged, levied, collected and paid in respect of- ( a) every taxable supply of goods or services in Zambia, other than a zero-rated supply; and (b) every taxable importation of goods into Zambia;. that takes place on or after the tax commencement day. Imposition and scope of tax �- ( ' '' I •I! I I I i"i :1 ' L I; 'I ' I, I' i . 32 No. 4 of 1995] Value Added Tax (2) The reference in subsection (1) to a supply of goods or seivices in Zambia includes a reference to a supply that, by the operation of section eleven or twelve orof any rule made under those section, is to be·regarded as taking place in Zambia. (3) Tax on a supply of goods and scivices is payable by the supplier of the goods or seivices and, subject to any other provision made by or under this Act in relation to accounting, is due and payable at the time of supply. Cap. 662 (4) Tax on an imponation of goods shall be charged as ifit were a duty of customs under the Customs and Excise Act, and is payable, accordingly, by the imponer of the goods. Rate of tax
Section 8Verify source
§ 9(1) Tax on a taxable supply of goods or seivices shall beProvision

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.

9. (1) Tax on a taxable supply of goods or seivices shall be charged on their taxable value, at the prescribed rate of tax. Taxable value of supplies and importations (2) Tax on a taxable imponation of goods shall be charged on their taxable value, at the prescribed rate of tax. (3) The prescribed rate of tax shall be twenty per centum, unless the Minister, by statutory order, determines a lower rate. (4) For the purposes of any provision of this Act, or of the regulations or rules made under this Act, the prescribed rate of tax in the case of a zero-rated supply shall be regarded as zero.
Section 9Verify source
§ 10(1) Subject to this section, where goods or seivices arcProvision

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.

10. (1) Subject to this section, where goods or seivices arc supplied for a monetary consideration, the amount by which that consideration exceeds the tax payable in respect of the supply shall be the taxable value of the goods or seivices. (2) Where goods or seivices are supplied- ( a) otherwise than for a monetary consideration; (b) for a consideration that consists only panly of money; or (c) for a consideration that is less than the open market value of the goods or seivices; the amount by which their open market value exceeds the tax payable in respect of the supply shall be the taxable value of the goods or seivices. (3) The taxable value of imponed goods shall be determined as for a duty of customs, but shall be taken to include the amount of any duty .or other impost payable otherwise than under this Act in respect of the imponation. ,. :'I I I Value Added Tax [No. 4 of 1995 33 (4) In this section, " open market value " means the price at which the goods or services concerned would have been supplied, in the ordinary course of business, to a person independent of the supplier. 1 1 . (1) This section shall have effect for determining whether goods shall be regarded, for taxation purposes, as being supplied in Zambia. Place of supply of goods (2) Goods shall be regarded- ( a) as supplied in Zambia if they are exported from Zambia or if their supply does ·not involve their removal from or to.Zambia; (b) as supplied in Zambia if their supply involves their installation or assembly at a place in Zambia to which they are removed; and (c) as supplied outside Zambia if their supply involves their installation or assembly at a place outside Zambia to which they are removed. (3) For the purposes of the preceding provisions of this section, where goods, in the course of their removal from a place in Zambia to another place in Zambia, leave and re-enter Zambia, the removal shall not be regarded as a removal from or to Zambia. (4) Where the Commissioner-General is of the opinion that, in relation to any C3Se or class of cases- ( a) the place at which goods are regarded, for taxation pur­ poses, as supplied is doubtful; or (b) the application of the provisions of this section gives rise to inequity or anomaly, whether because of the taxation laws of any other country or for any other reason appearing to the Commissioner-General to be signifi­ cant; he may, in relation to that case or class of cases, make provision, by administrative rule, for or with respect to the determination, for taxation purposes, of the place of supply in a manner calculated to avoid any such doubt or rectify or mitigate any such inequity or anomaly; and any provision,o made shall have effect in the relevant case or cases, instead of the foregoing provisions of this section.
Section 10Verify source
§ 12(1) This section shall have effect for determining whetherProvision

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.

12. (1) This section shall have effect for determining whether services shall be regarded, for taxation purposes, as being supplied in Zambia. Place of supply of services '\ 'I \· I 34 No. 4 of 1995] Value Added Tax (2) Where a service consisting of the lease, hire or loan of any goods does not involve the removal of the goods from orto Zambia, the service shall be regarded as supplied in Zambia. (3) For the purposes of subsection (2), where goods, i n the course of their removal from a place in Zambia to another place in Zambia, leave and re-enter Zambia, the removal shall not be regarded as a removal from or to Zambia. (4) Services shall be regarded as supplied in Zambia if the supplier of the services- (a) has a place of business in Zambia and noplace of business elsewhere; (b) has no place of business in Zambia or elsewhere but his usual place of residence is in Zambia; or ·- (c) has places of business in Zambia and elsewhere but the place of business most directly concerned with the supply of the services in question is the one in Zambia. (5) Where the Commissioner-General is of the opinion that, in relation to any case or class of cases- (a) the place at which services are regarded, for taxation purposes, as supplied is doubtful; or (b) the application of the provisions of this secllon gives rise to inequity or anomaly, whether because of the taxation laws o( any other country or for any other reason appearing to the Commissioner-General to be signifi- cant; he may, in relation to that case or class of cases, make provision, by administrative rule, for or with respect to the detennination, for ·taxation purposes, of the place of supply in a manner calculated to avoid any such doubt or rectify or mitigate any such inequity or anomaly; and any provision so made shall have effect in the relevant case or cases, instead of the forgoing provisions of this section.
Section 12Verify source
§ 13(1) This section shall have effect for determining, for taxaProvision

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.

13. (1) This section shall have effect for determining, for taxa- tion purposes, the time at which goods or services are supplied. (2) The time at which any goods are supplied, or at which any service consisting of the lease, hire, loan or treatment of, or other _activity in relation to, any goods, is supplied, shall be whichever is the earliest of the following times: ( a) the time when goods are removed from the premises of the supplier; Time of supply of goods or services l ! j,I I I• 1, ,, Ii I j ,, f l 1 ;I I r I I . , , ' · 1 I I Value Added Tax [No. 4 of 1995 35 (b) the time when the goods are made available to the person to whom they are supplied; (c) the time when payment for the supply is received; ( d) the time when a tax invoice is issued. (3) Where, in respect of the supply of any goods,orof any service referred to in subsection (2), payment is received or a tax invoice is issued in respect of part of the supply, paragraph (c) or (d) of that subsection shall apply to that part of the supply, and tax thereon shall be payable accordingly. (4) Where electricity, water or any other commodity measured by meter is supplied, the time of supply shall be the time when the meter is next read after consumption of the cornlTlodity, except to the extent that payment is sooner made, or a tax invoice is svoner issued, in respect of the supply. (5) Subject to the preceding provisions of this section, the time of supply of services shall be whichever is the earliest of the following times: (a) the time when payment for the supply is received; (b) the time when a tax invoice is issued; or (c) the time when they are actually rendered or performed. (6) Where the Commissioner-General is 01 the opinion that, in relation to any case or class of cases- (aJ the time at which goods or services are regarded, for taxation purposes, as supplied is doubtful; or (b) the application of the provisions of this section gives rise to some inequity or anomaly; he may, in relation to that case or class. of cases, make provision, by administrative rule, for or with respect to the determination, for taxation purposes, f the time of supply in a manner calculated to avoid any such doubt or rectify or mitigate any such inequity or anomaly; and any provision so made shall have effect in the relevant case or cases, instead of the foregoing provisions of this section.
Section 13Verify source
§ 14For taxation purposes, goods shall be taken to be importedProvision

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

14. For taxation purposes, goods shall be taken to be imported into Zambia at the time when tl]ey are regarded as so imported under· the Customs and Excise Act.
Section 14Verify source
§ 15(1) A supply of goods or services, or an importation of goods,Provision

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

15. (1) A supply of goods or services, or an importation of goods, that is described in the First Schedule shall be exempt from taxation. Time of importation Cap. 662 t.x�ptions and zero- ratings I ' ·I .\ i' ,,, I 36 No. 4 of 1995] Value Added Tax Tax returns (2) A supply of goods or services that is described in the Second Schedule shall, unless itis an exempt supply, be a zero-rated supply. (3) The Minister may, by statutory order, vary, add to or replace the First or Second S<:hedule. PART III AccoUNT!NG FOR AND PAYMENT OFT AX
Section 15Verify source

Part

PART III

§ 16(1) Every taxable supplier shall, in respect of each prescribedProvision

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.

16. (1) Every taxable supplier shall, in respect of each prescribed accounting period, lodge with the Commissioner-General a tax return, i n a form approved by the Commissioner-General, contain­ ing such information as the forn1 requires in relation to the supply by him of goods or services, and the importation of goods, during that period, any tax deductions or credits and any other matter concerning his business. (2) The return shall be lodged within twenty-one days after the end of the presc,ribed accounting period to which it relates or within such other time as the Commissioner-General may in a particular case determine by notice. (3) For the purposes of this Act, the prescribed accounting period for a taxable supplier shall be the month next succeeding the month in which he was registered and each succeeding calendar month, unless the Commissioner-General, by notice in writing to a particu­ lar supplier, determines another prescribed accounting period for that supplier. (4) A form of return approved by the Commissioner-General for the purposes of subsection (1) shall, on request, be made available to any taxable supplier. ! I ' ' Late lodgment of returns
Section 16Verify source
§ 17(1) A taxable supplier who fails to lodge a return within theOffence

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

17. (1) A taxable supplier who fails to lodge a return within the time allowed by orunderthis Act shall pay additional tax consisting of,- ( a) one thousand penalty units; or (b) one-half of one per centum of the tax payable in respect of the prescribed accounting period covered by the return; whichever amount is the greater, for each day the return is late. (2) Additional tax prescribed by this section is payable twenty­ one days after the date on which it is incurred. (3) The imposition or payment of additional tax prescribed by this section does not affect any liability of the supplier to pay any interest or penalty elsewhere prescribed in this Act. Value Added Tax [No. 4 of 1995 37
Section 17Verify source
§ 18(1) The amount of any tax (in this Act referred to as "inontProvision

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

18. (1) The amount of any tax (in this Act referred to as "inont tax") of the following character: Tax deductions and credits ( a) tax payable in respect of the suppl y of goods or services supplied to a registered supplier during a prescribed accoupting period for the purposes of a business carried on or to be carried on by him; anc' (b) tax paid by a registered supplier on the importation, during a prescribed accounting period, of any goods used or to be used for the purposes of a business carried on or to be carried on by him; may, so far as not previously deducted and subject to the exceptions contained in or prescribed under this section, be deducted from his tax liability orotherwise credited to hini in respect of that prescribed accounting period or a later prescribed accounting period. (2) Subject to the exceptions prescribed under this section, the input tax that may be deducted by, nr credited to, a registered supplier shall be- ( a) the whol e of that tax, if all the supplies effected by him in the course of his business are taxable; or (b) such proportion ofthat tax as, in accordance with admin­ istrative rules made by the Commissioner0General, is attributable to taxable supplies, if some but not all of the supplies effected by him in the course of his business are taxable. (3) Input tax shall not be deducted, credited or claimed unless the registered supplier, at the time oflodgmentof thc return in which the deduction or credit is claimed, is in possession of a tax invoice, or other evidence satisfactory to the Commissioner-General, relat­ ing to the goods or services in respect of which the tax is claimed or, in the case of imported goods, such documentary evidence of the payment of tax as the Commissioner-General may, by administra­ tive rule, prescribe; and a person claiming input tax in contravention of this section shall, unless he satisfies the court to the contrary, be deemed tci have taken steps for the fraudulent recovery of tax in contravention of sectionforty-four. (4) Input tax may not be deducted or credited after a period of three years from the date of the relevant tax invoice or other evidence referred to in subsection (3), except in such circumstances as may be allowed by administrative rules made by the Commis­ sioner-General. r 38 No. 4 of 1995) Value Added'rax (5) The Minister may, by regulation, determine cases in which a deduction or credit of input tax shall not be allowed, any such determination being made by reference to- ( a) the goods or services supplied or the goods imported; or (b) the supplier or imJX)rter, or rhe person supplied; or such other factors as the regulations may prescribe. (6) Without limiting the generality of paragraph (b) of subsection (2), rules made by the Commissioner-General for the purposes of that paragraph may- ( a) determine a proportion of supplies in any prescribed accounting period which is to be taken as consisting of taxable supplies; and (b) provisionally attribute input tax in accordance with the proportion so determine.d and adjust the attribution over two more prescribed accounting periods. (7) The Minister may make regulations for or with respect to enabling a taxable supplier who was not a registered supplier at the time of supply or payment to claim, as input tax, tax on the supply to him of goods or services, or paid by him on the importation of goods.
Section 18Verify source
§ 19(1) A taxable supplier whose tax liabilities in respect ofProvision

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.

19. (1) A taxable supplier whose tax liabilities in respect of particular prescribed accounting period are not exhausted by allow­ able deductions shall, within the time allowed for lodgment of his tax return for that period, remit the tax amount due to the ComlT';• sioner-General. Payment of tax or credit (2) Where, in respect of a particular prescribed accounting period, a registered supplier's allowable credits exceed what would have been his tax liabilities, if any, for the period, the Commis­ sioner-General shall, within twenty-one days after- I ( a) the end of the quarter that includes the last day of that period; or (b) receipt of the last outstanding tax return due for any pryscribed accounting period falling within that quarter; whichever is later, remit to him the amount to which he stands in credit by reason of the excess. Interest on overdue tax
Section 19Verify source
§ 20(!) Where any tax due and payable under this Act is not paidProvision

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

20. (!) Where any tax due and payable under this Act is not paid within the time allowed, interest at the prescribed interest rate shall be payable on the amount for the time being due and unpaid. l l I i Value Added Tax [No. 4 of 1995 39 (2) Interest payable under subsection (1) shall, while it remains unpaid, attract interest as if it formed part of the tax owing. (3) Interest payable under this section shall be compounded at each prescribed accounting period for the supplier concerned, according to the number of such periods, or part of any such period, during which the tax, and any interest overdue and payable, remains unpaid.
Section 20Verify source
§ 21(1) Where, in the opinion of the Commissioner-General, aProvision

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.

21. (1) Where, in the opinion of the Commissioner-General, a taxable supplier has failed to pay any of the tax payable by him by ' ' , .. reason of- · · Assessment of tax (a) his failure to keep proper books of a<:eount, records or documents as required under this Act, or .the incorrect­ ness or inadequacy of any such books, records or documents; or (b) his failure to make, or delay in making, any return required under this Act or the incorrectness or inadequacy of any such retu,ns; the Commissioner-General may assess the tax due and any interest payable theree,,1. (2) Notice of an assessment shall be sent to the taxable supplier concerned; and the notice shall inform him of his rights of appeal n nder Part VI. (3) Subject to any rights of appeal conferred by this Act or any other law, the assessment of the Commissioner-General is conclu­ sive as to the amount of tax payable, the time when it was due and ought to have been paid, the amount of any interest payable thereon and all other matters incidental thereto. (4) Notwithstanding the foregoing provisions of this section, an assessment'bl)sed on the incorrectness or inadequacy of a return shall be void and of no effect if it is not made within two years after the Commjssioner-General first had reason to believe it was incor­ rect or inadequa,e. (5) On sufficient cause shown to the Commissioner-General within the appeal period, or within such further time as the Commis­ sioner-General may allow, the Commissioner-General may make a revised as�essment of tax and interest due from any taxable supplier, and such an assessment shall for all purposes rescind and replace any assessment formerly made in respect of the same liability. 1 1 I 40 No. 4 of 199SJ Value Added Tax (6) Tax and interest due in accordance with ari assessment shall not be recoverable until the expiry of the appeal period. (7) In this section, "the appeal period" means the time limited unde, Part VI for lodgment of an appeal against an assessment. PART IV DEFAULT IN PAYMENT OF T AX Reeovery of tax and interest
Section 21Verify source

Part

PART IV

§ 22(1) Tax and any interest due under this Act is a debt due to theProvision

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

22. (1) Tax and any interest due under this Act is a debt due to the Republic and shall be recoverable at the suit of the Commissioner­ General,or any officer authorised by him, in any court of competent jurisdiction. · (2) Any amount shown on an invoice as tax chargeable on a supply of goods or services shall be recoverable as tax due from the person issuing the invoice, regardless of whether- ( a) the invoice is made out in a form prescribed under this Act; (b) tax is chargeable in respect of the supply to which the invoice relates; or (c) the person issuing the invoi� is a registered supplier; and interest on the amount concerned may, in an appropriate case, be recovered accordingly. (3) For the purposes of any provision of tnis Act or the regula­ tions or rules under this Act relating to the collection or recovery of tax or interest, a reference in any such provision to a registered or taxable supplier shall include a reference to any person from whom tax or any interest is recoverable by virtue of this section. Attachment of debts, etc.
Section 22Verify source
§ 23(1) Where any tax or interest due from a taxable supplierOffence

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.

23. (1) Where any tax or interest due from a taxable supplier remains unpaid, the Commissioner-General may, by notice in writing, require any other person- / (a) from whom any money is due, or is· accruing or may become due, to the supplier; (b) who holds, or may subsequently hold, money on account of some person for or on account of, or for payment to, the supplier; or (c) having authority from any person to pay money to the supplier; to pay that money, or so much as is sufficient to discharge the tax or interest due from the taxable supplier, in the manner directed by the Commissioner-General as and when it would, but for the notice, be or become payable to the supplier. I /' 1 1 Value Added Tax [No. 4 of 1995 41 (2) Upon service of a notice under this section, the money concerned, to the extent necessary to discharge the tax or iiiterest due from the supplier, is a debt due to the Republic and shall be recoverable al lhe suit of the Commissioner-General, or any officer authorised by him, in any coun of competent jurisdiction; and all claim by the supplier to such money shall, to the like extent, be thereby extinguished. (3) A person on whom a notice under this section has been served and who fails to comply with the notice shall be guilty of an offence and shall be liable, on conviction, to a fine not exceeding five thousand penalty units or ten per centum of the amount demanded by the notice, whichever is the greater.
Section 23Verify source
§ 24Where the Commissioner-General considers it necessaryProvision

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.

24. Where the Commissioner-General considers it necessary to do so for the protection of the revenue; he may, as a condition of allowing or repaying any input tax to any registered supplier, require the supplier- Security and production of evide'nce ( a) to produce any documents, relating to any such tax, that were supplied to that supplier; or (b) to give security, or further security, of such amount and kind as the Commissioner-General may determine, fm the payment of any tax which is due from him.
Section 24Verify source
§ 25(1) Where the Commissioner-General has reason to believeProvision

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.

25. (1) Where the Commissioner-General has reason to believe that any tax or interest due under this Act.from a taxable supplier may no, be paid within the time allowed.by or under this Act by reason of the loss, transfer or disposition by the supplier of his assets, the Commissioner-General may, by notice in writing to him, require payment Jf Lhc money forthwith. (2) Upon service of a notice under this section, the provisions of this Act shall apply as though the time allowed by or under this Act for payment by the supplier of the tax or interest concerned had expired. Requirement for early payment ·.- 1 1
Section 25Verify source
§ 26(1) Where any tax or interest due from a taxable supplier DistressOffence

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.

26. (1) Where any tax or interest due from a taxable supplier Distress remains unpaid, an authorised officer may, under warrant by the Commissioner-General, levy distress upon the goods and chattels ot the supplier .. (2) The officer executing the warrant, with a police officer or such other assistants as he may consider necessary, may, a.t any time between sunrise and sunset, break open any premises of the supplier. j) !I 'I ,. I . 42 No. 4 of 1995] Value Added Tax (3) Goods and chattels on which distress has been levied under this section shall be kept for ten days either at the premises at which distress was levied or at such other place as the officer executing the warrant may consider appropriate, at the cost of the supplier. (4) If the supplier does not pay the amount due under this Act, together with any costs under subsection (3), within the period often days mentioned in that subsection, the goods and chattels shall be sold by public auction. (5) The proceeds of a sale under subsection ( 4) shall be applied towards payment of those costs and any further costs of, or inciden­ tal, to the sale, and the surplus, if any, shall be applied towards payment of the amount due arid the balance, if any, shall be paid to the supplier, after deduction of any further tax or interest by thei< due from him. (6) A person on whose goods and chattels distress has been levied or is to be levied, or any other person, who fraudulently removes and takes aw.ay any such goods and chattels to prevent the Commissioner-General from distraining them or completing the distress so levied, or assists in the same, shall be guilty of an offence and shall be liable, upon conviction, to- ( a) a fine not exceeding ten thousand penalty units or three times the value of the goods taken away, whichever is the greater; or (b) imprisonment for a term not exceeding twelve months; or to both. PART Y REGISTRATION OF SUPPLIERS Register of suppliers
Section 26Verify source

Part

PART Y

§ 27(1) There shall be a register of suppliers, in which shall beProvision

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.

27. (1) There shall be a register of suppliers, in which shall be recorded such particulars of taxable suppliers and their businesses as the Commissioner-General may determine. (2) Where two, or more individuals in partnership carry on a business involving the supply of goods or services, registrati_on may be effected in the name of the firm. (3) Where a club, association orotherunincorporated organisation carries on a business involving the supply of goods or services, registration may be effected in the name of the organisation. (4) Where several companies constitute a recognised group for the purposes of this Act, registration may be effected in the name of i I. ,- I ' j I I . r I Value Added Tax [No. 4 of 1995 43 the group, and such registration displaces any requirement under this Part to apply for, or effect registration of, any corporate member. (5) The registration of a company carrying on business in several divisions may, if the company so requests and the Commissioner­ General sees fit, be effected in the names of those divisions, and such registration displaces any requirement under this Part to apply or effect registration of the company. (6) The Commissioner-General may, by administrative rule, make provision for requiring registered suppliers to notify the Commissioner-General of such particulars of changes in circum­ stances relating to them, or any business carried on by them, as appear to him necessary for the purpose of keeping the register up to date.
Section 27Verify source
§ 28(]) Every supplier who is carrying on a business in Zambia RegistrationProvision

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.

28. (]) Every supplier who is carrying on a business in Zambia Registration whose taxable turnover exceeds the turnover prescribed by the Minister, by statutory order, shall make application to be registered. (2) An application for registration shall be made in such manner and form as the Commissioner-General may, by administrative rule, prescribe. (3) Subject to this section, the Commissioner-General shall register every applicant for registration who is carrying on a business in Zambia whose taxable turnover exceeds the turnover prescribed by subsection (]). (4) Where the Commissioner-General considers that there is good reason to do so, he may- ( a) register any supplier, whether or not an application for registration has been made; or (b) refuse to register any supplier; regardless of the turnover.of the business conducted by the supplier. (5) Where the Commissioner-General is satisfied that all the supplies effected in the course of a supplier' s business would be zero-rated supplies, he may, by notice in writing, exempt a supplier from the requirement to be registered: Provided that such an exemption may in like manner be rescinded by the Commissioner-General at any time whereupon the supplier shall apply for registration. within such time as the Commissioner-General may allow. (6) In this section," taxable turnover "means that part of the turnover of a business that is attributable to taxable supplies, ll I I I i I I ' _ .......,. __ .. '--1" 44 No. 4 of 1995] Value Added Tax calculated in a manner, and in respect of a period, prescribed by the Minister by statutory order. Failure to register, etc.
Section 28Verify source
§ 29A supplier whoOffence

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.

29. A supplier who- ( a) being required to apply for registration under this Pan, fails to do so within one month after becoming liable to apply; (b) contravenes any term or condition of his registration; or (c) not being a taxable supplier, holds himself out as such; shall be guilty of an offence and shall be liable, on conviction, to a fine not exceeding ten thousand penalty units or to imprisonment for a term not exceeding twelve months, or both. PART VI APPEALS Value Added Tax Appeals Tribunal
Section 29Verify source

Part

PART VI

§ 30(1) For the purpose of hearing and determining appeals asProvision

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

30. (1) For the purpose of hearing and determining appeals as provided for in this Part, there shall be a Value Added Tax Appeals Tribunal, consisting of three persons appointed by the Minister on the recommendation of the Judicial Service Commission. (2) A member of the Tribunal shall, subject to subsection (3), hold office for a period of four years from the date of his appoint­ ment btit shall be eligible for reappointment for one further term. (3) The Minister may at any time remove a member from office and a member may resign his office by giving one month's notice to that effect in writing to the Minister. (4) The Minister may appoint deputy members of the Tribunal, who shall have and may perform the functions of a member during the member's illness or absence. (5) There shall be a Registrar ofthe Tribunal, who shall have such functions as may be conferred on him by regulations made under subsection (6). (6) The Minister may, by regulation- (a) prescribe the requisite qualifications or experience for appointment as a member of the Tribunal; (b) regulate the organisation, administration and procedure of the Tribunal; and (c) empower the Tribunal to summon and compel the attendance of witnesses, to require the production of I I , I , I I.: 11 l \ ' -- �'I:, Value Added Tax [N&. 4 of 1995 45 documents,'to award costs and to do and require all such matters and things as may be necessary, in the opinion of the Minister, for the due performance of its functions. (7) Subject to any regulations made under this Act, the Tribunal may regulate its 1Jwn procedure. (8) A member of the Tribunal shall be entitled to receive such allowances as the Minister may determine.
Section 30Verify source
§ 31(1) Any person aggrieved by a decision or determinationProvision

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

31. (1) Any person aggrieved by a decision or determination made by the Commissioner-General under this Act, or any regula­ tions or rules made under this Act, in respect of any of the following matters: Appeals to Tribllllal I (a) the registration or cancellation of registration of, or a refusal to register, a supplier; (b) the tax assessed to be payable on_ any supply of goods or seivices or the importation of any goods; (c) the amount of any input tax that may be credited to any taxable supplier; ( d) the application of any administrative rule providing for the apportionment or disallowance of input tax; (e) any notice under section twenty-five; (f) any requirement of the Commissioner-( :neral for the provision of security; ( g) any matter prescribed by the Minister, by regulation, to be a matter against which an appeal shall lie under this section; may, in such manner and within such time as the Minister may, by regulation, prescribe, appeal to the Tribunal. (2) No appeal shall be heard unless- ( a) any and all tax returns required under this Act to be made by the appellant at the time the appeal is lodged have by that time been made; and (b) where the appeal is against an assessment of the Commis­ sioner-General or otherwise involves a dispute over an amount of tax or interest allegedly due and unpaid by the appellant, the amount in dispute is lodged with Tribunal. ---- - -- ---- - --- - - --- --- -- ' ' L I ' 46 No. 4 of 1995) Value Added Tax (3) The Tribunal may waive the requirements of paragraph (b) of subsection (2) on the provision of such security by the appellant as it considers acceptable or may, in cases of hardship, waive the requirement absolutely or on such tenns as it thinks fiL Determin a - lion of appeals
Section 31Verify source
§ 32(1) The Tribunal, having regard to the provisions of this ActProvision

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.

32. (1) The Tribunal, having regard to the provisions of this Act and to the circumstances of the case, shall hear and detennine the appeal and may confinn, reverse or vary the decision of the Commissioner-General, as justice may require. (2) The decision of the Tribunal shall be binding on the panies to the appeal, and in cases where the appeal is allowed, it shall be the duty of the Commissioner-Gener� to give effect to the decision of the Tribunal. � (3) Interest shall be paid by the Authority, compounded in the manner prescribed and at the prescribed interest rate, in respect of the whole or pan of any month during which a deposit was lodged by the applicant as a condition of the hearing of the appeal, to the extent to which that deposit exceeded any amount recovered against the appellant. (4) Nothing in this section precludes the issue of any of the prerogative writs or limits any jurisdiction of the couns. PART VII ADMINISTRATION AND ENFORCEMENT Functions of Authority
Section 32Verify source

Part

PART VII

§ 33(l)The Authority shall be responsible for the administrationProvision

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.

33. (l)The Authority shall be responsible for the administration of this Act and for the charging, levying and collection of tax. (2) The Minister may approve the establishment by the Authority of a reserve account with the Bank of Zambia for the payment therefrom of any credits under section nineteen, and from tax collected under this Act, the Authority shall from time to time appropriate sufficient funds to meet the requirements of the reserve account. (3) Except as provided by subsection (2), tax collected under this Act shall be credited to the Treasury as soon as is reasonably practicable, and the provisions of sections twenty-four and twenty- five of the Zambia Revenue Authority Act, 1993, shall apply in respect of revenue derived from tax under this Act. Act No, 28 of 1993 Delegation byCommis- sioner- General
Section 33Verify source
§ 34(1) The Commissioner-General shall have and may exerciseProvision

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.

34. (1) The Commissioner-General shall have and may exercise and perfonn the powers and functions conferred on him by orunder this Act. ii u 11 I: i: :, ' i!. ! I � Value Added Tax [No. 4 of 199S 47 (2) The Commissioner-General may delegate any of his func­ tions under this Act to the Commissioner of Value Added Tax or other officers of the Authority.
Section 34Verify source
§ 35(1) Sufficient persons shall be appointed as authorisedProvision

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

35. (1) Sufficient persons shall be appointed as authorised officers for the purpose of exercising and performing the powers and functions of authorised officers under this Act. Authorised officers (2) Every authorised officer shall be issued with means of identification as to his appointment as such, and shall, when exercising any power under this Act, on demand, produce the same to any person of whom a requirement is made in the course of the exercise of that power.
Section 35Verify source
§ 36(1) Where an authorised officer has reason to believe that itProvision

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.

36. (1) Where an authorised officer has reason to believe that it is necessu,:; to do so for the protection of the revenue, he may take, from goods i., ,,1e possession of any person who supplies goods, such samples "� may be reasonably necessary to determine how the goods or the materials from which they are made ought to be or to have been dealt with for taxation purposes. (2) No sample shall be taken under this section withoutthc issue by an authorised officer of a receipt to the person from whom it was taken, and every sample shall be disposed of and accounted for in such manner as the Commissioner-General may direct. (3) Where a sample taken under this section is not returned, within a reasonable time and in good condition, to the person from whom it was taken, the Authority shall pay him, by way of compensation, a sum equal to the cost of the sample to him or such larger sum as the Commissioner-General may determine.
Section 36Verify source
§ 37(1) Every person who is concerned, in any capacity, in theProvision

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

37. (1) Every person who is concerned, in any capacity, in the supply of goods in the course of a business or to whom any goods arc, in the course of a business, supplied shall- (aJ furnish to the Commissioner-General, within such time and in such form as he may require, such information as he may specify, being information to which the person has legitimate access and which concerns the goods or their supply; and (b) upon demand made by an a\lthorised officer, produce or cause to be produced any documents for inspection by the officer, being documents to which the person has legitimate access and which concern the goods or their supply, and permit the officer to make copies of, or to take extracts from, them or to remove them at a reason­ able time and for a reasonable period. Taking of samples Furnishing of informa­ tion and production of docu­ ments ', I j, I i I i' I f 48 No. 4 of 1995] Value Added Tax (2) Every person who is concerned in any capacity in the supply of any services for a consideration or to whom any services are, for a consideration, supplied, shall- ( a) furnish to the Commissioner-General, within such time and in such form as he may require, such information as he may specify, being information to which the person the legitimate access and which concerns has consideration for the supply or the name and address of the person to whom the services are supplied; and (b) upon demand made by an authorised officer, produce or cause to be produced any documents for inspection by the officer, being documents to which the person has legitimate access and which concern any such consideration, and permit the officer to make copies of, or to take extracts from, them or to remove them at a reasonable time and for a reasonable period. (3) The Commissioner-General or an authorised officer may, for the purpose of receiving any information or document under the foregoing provisions of this section, or for the purpose of examining the person concerned in relation to any such information or docu­ ment, require the attendance of the person at the offices of the Commissioner-General or at such other place, and at such time or times, as the Commissioner-General or authorised officer may specify. (4) Forthe purposes of this section, the documents relating to the supply of goods, or to the consideration for the supply of services, in the course of a business, shall be taken to include any profit and loss account and balance sheet or other book of account, and any correspondence or other writing, relating to that business and any certificate evidencing registration under this Act. (5) Where any information or document is electronically stored, subsections (1) and (2) shall be deemed to empower the authorised officer, for the purpose of exercising the powers conferred by that subsection in relation to it- (a) to view the information or document and to copy or take extracts from it by electronic means; or (b) to require that it be reproduced in hard copy, or copied 0!1 to computer diskette or reduced to some other portable form suitable for removal and capable of reproducing the information or document for viewing. (6) Where any documents, computer diskettes or other things removed under the powers conferred by this section are lost or -' Value Added Tax [No. 4 of 1995 49 damaged, the Authority shall be liable to compensate their owner for any expenses reasonably incurred by him in replacing or repairing them.
Section 37Verify source
§ 38(I) For the purpose of exercising any power conferred on Entry andOffence

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.

38. (I) For the purpose of exercising any power conferred on Entry and search him by or under this Act, an authorised officer may, at any reasoriable time, enter any premises which he has reason to believe · are used for or in connection with the carrying on of a business, including any premises used only for the storage of goods or documents, and shall have full and free access therein to open any packaging, take stock of any goods and do all such things as are reasonably necessary for the perform ance of his duties. , ' . (2) Where a magistrate is satisfied on sworn information that there is reason to suspect that any premises contain goods in respect of whose supply tax has been evaded, or tax deductions or credits have been wrongly made, or contain documents or other evidence of an offence against this Act, he may issue a warrant authorising an authorised officer to enter and search those premises, and the authorised officer executing the warrant may- ,, \' \ ,-.. (a) take with him such persons as appear to him to be necessary for its due execution; (b) search for and seize and remove any goods, documents or other things found on the premises which he has reason to believe to be evidence for the purpose of proceedings in connection with such an offence or for the assessment of any tax; and (c) search or cause to be searched any person found on the premises who he has reason to believe has committed such an offence or to be in possession of any such goods, documents or other things: Provided that no person shall be searched by a person of the opposite sex. (3)The authorised officer shall provid e to the person apparently in charge of anything taken in execution of a warrant under this section a receipt for the thing taken. (4) The authorised offi cer may seal off, lock up or in any other physical manner prevent access to any premises for the purpose of the exercise of any power under this section or for the safeguarding of evidence from tampering. (5) The provisions of section tlzirry0seven relating to documents and to the electronic storage of documents shall apply in respect of the exercise by an authorised officer of a power conferred under this section. \ ! 1 ! 1 ,, I: I :I I i I I I I � I I I I i ( ' ' I, ti , 1 i, \ ri I, II ii ,, I I I I so No. 4 of 1995] Value Added Tax Obstruction of authorised officer� Imperson- ation of
Section 38Verify source
§ 8uthoriscdProvision

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

8.uthoriscd officers Immunity of authorised officers Records and Accounts False rcroms and statements
Section 8Verify source
§ 39A person whoOffence

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

39. A person who- (a) fails to comply with any requirements made of him under section thirty-seven; or (b) assaults, obstructs, hinders or resists an authorised officer in the exercise or performance of any of his powers or duties under this Act; shall be guilty of an offence and shall be liable, on conviction, to a fine not exceeding twenty thousand penalty units or to imp, :son- ment for a term not exceeding two years, or to both.
Section 39Verify source
§ 40A person who impersonates an authorised officer shall beOffence

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

40. A person who impersonates an authorised officer shall be guilty of an offence and shall be liable, on conviction, to a fine not exceeding ten thousand penalty units or to imprisonment foi- a term not exceeding twelve months, or to both. 41. No action or other proceedings shall lie or be instituted against an auihorised officer for, or in respect of, any act or thing done or omitted to be done in good faith in the exercise or purported exercise of his functions under this Act. PART VIII MISCELLANEOUS
Section 40Verify source

Part

PART VIII

§ 42(1) A taxable supplier shall keep such records relating to theOffence

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

42. (1) A taxable supplier shall keep such records relating to the business carried on by him, and preserve them for a period of five years or such longer period as the Commissioner-General may, by notice in writing, require in any particular case. (2) A supplier who fails to keep any records required by or under this section to be kept by him, or who fails to keep them for the time so required, shall be guilty of an offence and shall be liable, on conviction, to a fine not exceeding ten thousand penalty units or to imprisonment for a term not exceeding twelve months, or both.
Section 42Verify source
§ 43Any person who, in purported compliance with anyOffence

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.

43. Any person who, in purported compliance with any requirement under this Act, makes a return or other declaration, furnishes any document or information or makes any statement, whether in writing or otherwise, that is fa!•� in any material particular shall be guilty of an offence and shall be liable, on conviction, to a fine not exceeding twenty thousand penalty units or to imprisonment for a term not exceeding two years, or to both. Evasion of taxation
Section 43Verify source
§ 44(1) Any person who is concerned in, or takes steps with aOffence

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.

44. (1) Any person who is concerned in, or takes steps with a view to, fraudulent evasion of tax or fraudulent recovery of tax shall be guilty of an offence and shall be liable, on conviction, to a fine Value Added Tax [No. 4 of 1995 51 Fine in lieu of prosecu.: tion not exceeding thirty thousand penalty units or six times the amount of the tax sought to be evaded or recovered, whichever is greater, or to imprisonment for a term not exceeding three years, or to both. (2) A person who deals in or accepts the supply or importation of any goods, or the supply of any services, having reason to believe that the proper tax has not been or will not be paid or that any deduction or credit has been or will be falsely claimed in relation thereto shall be guilty of an offence and shall be liable, on convic­ tion, to a fine not exceeding thirty thousand penalty units or six times the amount of the tax, whichever is greater, or to imprison­ ment for a term not exceeding three years, or to both. (3) Any goods which are the subject of an offence under this section shall, if the court convicts and so orders, be forfeited.
Section 44Verify source
§ 45(I) If a person alleged to be an offender under this ActOffence

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.

45. (I) If a person alleged to be an offender under this Act (hereinafter called the alleged offender) agrees to pay a specified fine proposed by the Commissioner-General, which does not exceed the maximum penalty provided by this Act for the offence in question, the Commissioner-General may impose that fine on the alleged offender: Provided that, if criminal proceedings have been instituted against the alleged offender for such offence, the power conferred by this subsection shall not be exercised without the written consent of the Director of Public Prosecutions. (2) The Commissioner-General shall furnish the alleged offender with a certificate setting out the nature of the offence, the date of its occurrence, and the fine imposed under subsection (!), and such certificate may be used by the alleged offender as prima facie proof of the facts stated therein. (3) If any fine imposed in terms of subsection (1) is not paid on demand, the Commissioner-General may talce steps for,ortowards, its recovery in any manner permitted by this Act with respect to the recovery of unpaid tax. (4) The imposition of a fine under subsection (I) shall not be treated as a conviction of the alleged offenderofa criminal offence, but no prosecution for the offence in question shall thereafter be instituted or maintained. (5) Nothing in this section shall in any way affect liability for the • payment of tax or interest due under this Act. I' ' S2 No. 4 of 199S] Value Added Tax Advertised retail prices to include tax
Section 45Verify source
§ 46(I) An advertisement made or published in respect of theOffence

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

46. (I) An advertisement made or published in respect of the sup:-,ly by retail of any goods or services shall, if it mentions· the price at which such goods or services may be obtained, state the price inclusive of tax. (2) A person who causes or permits any advertisement to be made or published in contravention of this section shall be guilty of an offence and shall be liable, on conviction, to afinenotexceedingten thousand penalty units. (3) In this section, "advertisement" includes any label attached to the goods and any sign displayed in connection with the goods or services and any quotation of their price.
Section 46Verify source
§ 47Where, after the making of a contract for the supply ofProvision

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.

47. Where, after the making of a contract for the supply of goods or services and before the goods or services are supplied- ( a) there is a change in the tax charged on the supply; or (b) tax chargeable on the supply is introduced or abolished; then, unless the contract otherwise provides, there shall be added to or deducted from the consideration for the supply an amount equal to the tax adjustment.
Section 47Verify source
§ 48Where an individual has been doclared bankrupt, any tax orProvision

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

48. Where an individual has been doclared bankrupt, any tax or interest due under this Act shall have priority over other debts proven against the bankrupt.
Section 48Verify source
§ 49A certificate of the Commissioner-General that­Commencement

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

49. A certificate of the Commissioner-General that­ (a) a person was or was not, at any date, registered; (b) any return required under this Act to be lodged has not been lodged or had not, on a specified date, been lodged; or ( c) any tax shown as due in any return or assessment lodged or made under this Act has not been paid; Adjustment of contracts on changes in tax Priority of tax debts in bankruptcy Evidence by certificate shall be sufficient evidence of that fact until the contrary is proven. Schemes for obtaining undue,tax benefits SO. (I) Notwithstanding any other provision of this Act, where the Commissioner-General is satisfied that any scheme that has the effect of conferring a tax benefit on any person was entered into or carried out- ( a) solely or mainly for the purpose of obt�,ning that benefit; and (b) by means or in a manner that would not normally be employed for bona fide business purposes, or by means of the creation of rights or obligations that would not normally be created between persons dealing at arm's length; L Value Added Tax [No. 4 of 1995 53 •• the Commissioner-General may determine the liability for any tax imposed by this Act, and the amount thereof, as if the scheme had not been entered into or carried out, or in such manner as, in the circumstances of the case, he considers appropriate for the preven­ tion or diminution of the tax benefit sought to be obtained by the scheme. (2) A determination under subsection (l) shall be deemed to be an assessment, and the provisions of section twenty-one and of Part VI, and any other provision made by or under this Act in relation to assessments, shall apply accordingly. (3) In this section- " bona fide business purposes " does not include the obtaining of a tax benefit; " scheme " includes any transaction, operation, understanding or arrangement, whether entered into or carried out before or after the commencement of this Act, whether or not involving the alienation of any property and whether or not enforceable, and all acts and things done or performed in furtherance thereof; " tax benefit " includes- ( a) any avoidance or reduction in the liability of any person to pay tax; (b) any increase in the entitlement of any registered dealer to a refund of tax; ( c) any reduction in the consideration payable by any person in respect of any supply of goods and services or the importation of any goods; or Id) any other avoidance or postponement ofliability for the payment of any tax;
Section 49Verify source
§ 51(1) The Minister may make regulations for or with respect to RegulationsOffence

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

51. (1) The Minister may make regulations for or with respect to Regulations '.any matter that by this Act is required orpermitted to be prescribed, or that is necessary or expedient to be prescribed for carrying out or giving effect.to this Act. (2) Without limiting the generality of subsection (1 ), regulations may be made for or with respect to-- ( a) the application of this Act in relation to supplies in the course ofa business conducted by the administrator of a bankrupt or deceased estate; I\ I I • I 54 No. 4 of 1995] Value Added Tax (b) de-reg1stration of suppliers; ( c) the transfer of businesses from one supplier to another; (d) the imposition. in prescribed circumstances, ofliability for taxes and charges on taxation agents; ( e) the issue and display of certificates of registration; (f) relief from taxation on account of bad debts; and ( g) the seIVicc of notices or other documents for the purposes of this Act. (3) the Regulations may create offences, and prescribe penalties not exceeding ten thousand penalty units, for any contravention of the regulations or of the rules made under this Act Administra­ tive rules
Section 51Verify source
§ 52(I) The Commissioner-General may, by notificationProvision

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

52. (I) The Commissioner-General may, by notification published in the Gazette, make administrative rules for or with respect to-- ( a) the keeping of accounts, the making of returns and accounting for tax for the purposes of this Act; and (b) any matter which he is authorised, by this Act or any regulations m ade underthisAct, to prescribe or regulate by administrative rule. (2) Rules under this section may require the keeping of accounts and the making of returns in such form and manner as may be prescribed by the rules and may require taxable suppliers supplying goods or seIVices to other taxable suppliers to provide them with tax invoices containing statements of such particulars as may be so prescribed of the supply, the tax chargeable on it and the persons by and to whom the goods or seIVices are supplied. (3) Rules under this section may make provision for m ethods of tax accounting and, in particular, for special methods of tax accounting by such retailers or other suppliers of goods or seIVices or any description of goods or services as may be prescribed by or under-the rules. (4) Rules under this section may make provision- ( a) for treating tax chargeable in one prescribed accounting period as chargeable in another such period; (b) for the adjustment of accounts in cases where tax has become chargeable by reference to a consideration and the amount of the consideration is reduced or no consideration becomes payable and i n such other circumstances as may be prescribed by the rules; I J I . Value Added Tax [No. 4 of 1995 55 ( c) for the rounding-off of figures in tax returns; and ( d) for the correction of errors. (5) The Commissioner-General may, in addition to notifying administrative rules in the Gazette, publish them in such other manner as he considers desirable for the information of persons affected by them or of the general public
Section 52Verify source
§ 53(!) Every supplier who, on a date prescribed by the MinisterOffence

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

53. (!) Every supplier who, on a date prescribed by the Minister by statutory order, is carrying on a business in Zambia whose taxable turnover · exceeds or is likely to exceed the turnover prescribed by that order shall make application to be registPred. Transitional registration provisions (2) An application for registration shall be made in sucn manner and form as the Commissioner-General may, by administrative rule, prescribe. (3) The Commissioner-General shall register every applicant for registration who, on the date prescribed for the purposes of subsec­ tion (1), was carrying ·on a business in Zambia whose taxable turnover exceeds or is likely to exceed such turnover as the Minister may, by statutory order, prescribe for the purposes of this subsection. (4) Subsections (4) and (5) of section twenty-eight apply in respect of registration under this section in the same way as the} apply in respect of registration under that section. (5) In this section, "taxable turnover" has the same meaning as in section twenty-eight. (6) A supplier required to apply for registration under this section who fails to do so within one month after becoming liable to apply shall be guilty of an offence and shall be liable, on conviction, to a fine not exceeding one thousand penalty units for each day that passes, after the expiry of that month, during which he fails to apply.
Section 53Verify source
§ 54(!) A registered. supplier who, immediately before the taxCommencement

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

54. (!) A registered. supplier who, immediately before the tax commencement day, was registered as a dealer under the Sales Tax Act shall be entitled to such relief from tax under this Act as may be determined by the Minister, by regulation, in respect of goods in stock immediately before that day that were eligible for tax relief under that Act. (2) A taxable supplier shall be entitled to such relief from tax under this Act as may be determined by the Minister, by regulation, in respect of goods that were imported on or after the date prescribed Other transitional provisions Cap. 663 I 56 No. 4 of 1995] Value Added Tax under subsection (1) of sectionfifty-three and that were in stock on the tax commencement day.
Section 54Verify source
§ 55On the tax commencement day, the �ales Tax Act and theCommencement

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.

55. On the tax commencement day, the �ales Tax Act and the Insurance Levies Act shall stand repealec Repeal of Cap. 663 and Act No. 25 of l990 FIRST SCHEDULE (Section 15) EXEMPT SUPPLIES AND IMPORTS I. Forni and livestock supplies (1)Livestock--1ive cattle, swiJle, sheep, goats, game, poultry and other animals of a kind generally used for human consumption. (2) Animal products-uncooked edible meat and offal of cattle. swine, sheep, goats, game Md poultry (including eggs), except- ( a) any of the above products that is supplied by a restaurant, cafeteria. canteen or like establishment; or (b) pate, fatty"Iivers of geese or ducks and any other product prescribed by the Minister by regulation. (3) Dairy products-cow's or goat's milk, cheese, butter and like products, except when supplied· by a restaurant, cafeteria. canteen or like establishment. (4) Fish-all uncooked fish, except shellfish, ornamental fish or any fish supplied by a restaurant, cafeteria, canteen or like establishmenL (5) Agricu/Jural products-fresh edible vegetables. fruits and nuts and the bulbs,- seeds and plants thereof; maize, wheat and other cereals; meal and floui-s; bread; sugar; edible and cooking oils and fats-except when any of the above produ_cts is supplied by a restaurant, cafeteria, canteen or like establishmenL (6) lnfanl food-when prepared and labelled as such.
Section 55Verify source
§ 2(!) In this Act, unless the context otherwise requiresProvision

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

2. Pesticides and fertlllzers The supply of fertilizers and pesticides for agricultural use.
Section 2Verify source
§ 3Health suppliesProvision

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.

3. Health supplies (1) The supply of health and �ed.ical services by a registered medical practitio­ ner. optici1µ1, dentist, hospital or clinic. (2) The supply of medicines and drugs. (3) The supply to a registered medical J)ractitio�ef, optician, dentist, hospital or clinic, or to a patient, of equipment designed solely.for medical or prosthetitruse. • ., Th ... supply of articles designed for use by the blind or disabled.
Section 3Verify source
§ 4Educational suppliesProvision

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

4. Educational supplies (1) Educational scIVices provided to primary or secondary srudents. (2) Educational services provided to other students otherwise than for profit I .1 .. i I ,, ·I Value Added Tax {No. 4 of1995 57 • S. Books qnd newspapers (!) Books, booklets, maps and chans. (2) Newspapers, journals and periodicals.
Section 4Verify source
§ 6Transport servicesProvision

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.

6. Transport services (1) Transportation of persons by road in a bus or coach licensed under the Roads and Road Traffic Act and having a seating capacity for fourteen or more adult persons. (2) Transportation of persons by air on any scheduled flight. (3) Transponation of persons by rail.
Section 6Verify source
§ 7Conveyance, etc. of real propertyProvision

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

7. Conveyance, etc. of real property (1) The sale or lease of an interest in land., (2) The sale or lease of domestic buildings.
Section 7Verify source
§ 8Financial. and Insurance servicesProvision

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.

8. Financial. and Insurance services (1) The provision of insurance. (2)The issue, transfer, receipt of orotherdealing with money (including foreign exchange) or any note or oder for the payment of money. (3) The provision of credit. (4) The operation of any account at a bank or other fmancial institution.
Section 8Verify source
§ 9GoldProvision

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

9. Gold The supply to a bank of gold in bullion fonn. 10, Funeral services Supply of any goods or services in the course of a person's burial or cremation, including the provision of any licence or certificate.
Section 9Verify source
§ 11Gaming and betting suppliesProvision

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.

11. Gaming and betting supplies (I) Accepl3llce of any lawful bet or wager. (2) Issue of any lottery ticket in a lawful lotteiy. (3) Use of any lawful gaming machine.
Section 11Verify source
§ 12Supplies to prlvlleged personsProvision

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.

12. Supplies to prlvlleged persons (I) Goods imported by the President. (2) Goods imported by diplomats or a diplomatic mission that is accredited by the Republic of Zambia for the official purposes-of that mission, to the extent but. only, in the case of any diplomat or diplomatic mission of a foreign country, that the foreign country grants reciprocal privileges to diplomats and t<_> the diplomatic mission of Zambia in that country, (3) Supplies under a technical aid agreement providing for exemption from Zambian taxation.
Section 12Verify source
§ 13Travellers' effectsProvision

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

13. Travellers' effects Goods in respect of which a rebate of duty is available under regulation 15 of the Customs and Excise (Rebates, Refunds and Remissions) (General) Regula­ tions, subject to the same limitations and collditions as pertain to such a rebate. !1 I' ( I I ' 'i I /1 I I ' .1 ' I I I I, 58 No. 4 of 1995] Value Added Tax SECOND SCHEDULE (Sectwn 15) lllRO-R A IBO s UPPUF.S I Expon of good from 7..amb1a by or on behalf of a wable supplier-, where such evidence of ellporuuon 1s produced as the Comm1ss1oner--Oc:neral may, by administrative rule, require.
Section 13Verify source
§ 2(!) In this Act, unless the context otherwise requiresProvision

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

2. The supply of services, including transpon and ancillary services, which are directly linked to the expon of goo<h' under item 1 .
Section 2Verify source
§ 3The supply of goods by a duty free shop, approved under the Customs andProvision

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

3. The supply of goods by a duty free shop, approved under the Customs and Ellcise Act, for export by passengers on nights to destinations outside Zambia.
Section 3Verify source
§ 4The supply of goods, including meals, beverages, duty free goods, for use asProvision

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.

4. The supply of goods, including meals, beverages, duty free goods, for use as aircraft stores on nights to destinations outside Zambia.
Section 4Verify source
§ 6The supply of services which are physically rendered outside ZambiaProvision

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

6. The supply of services which are physically rendered outside Zambia.
Section 6Verify source

Legislative relationships

3 referenced instruments

Names are derived from the stored provision headings and citation-enrichment layer. Treat this as a research index and verify each relationship against the source text.

A–F

2 instruments

  • Cap. 663 and Act

    Section 55

  • Companies Act, 1994

    Section 5

T–Z

1 instrument

  • Zambia. 33. (l)The Authority shall be responsible for the administration of this Act

    Section 33

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