Value Added Tax (Amendment) Act, 2003

3. Section six of the principal Act is amended by the insertion Amendment of section 6 immediately after subsection (2) of the following new subsection: (3) A government agency which is not engaged in providing taxable supplies shall claim from the ministry responsible for finance a refund of the input tax paid in connection with the supply of goods or services referred to in subsection (1) including any other goods or services suppli� to it.

4. Section eight of the P.rincipal Act is amended - ( a) in paragraph(b) by the addition after the words "importation Amendment of section 8 of goods" of the words c'or services"; (b) by the insertion immediately after subsection (4) of the following new subsections: (5) A recipient of an imported service shall pay tax on the importation of a service, where such a service is performed, undertaken or utilised in Zambia or the Copies of this Act can be obtained from the Government Printer, P.O. Box 30136, 10101, Lusaka. Price Kl,000 10 No. 2 of 2003] Value Added Tax (Amendment) benefit of the supply is for a recipient in Zambia : Provided that the provisions of this subsection shall apply where the supplier who is resident outside Zambia has not appointed a tax agent as required under subsection(?). (6) The corresponding inputtax shall be excluded from any claim, deduction or credit under section eighteen. / (7) A supplierwho- (a)does not have a business establishment in Zambia;or ( b) being an individual or partner in a partnership, does not have a usual place of residence in Zambia; shall appoint a person resident in Zambia (in this provision referred to as a" tax agent") lo act on behalf of the supplier in matters relating to tax. (8) Where the Commissioner-General accepts the appointment of a tax agent, referred to in subsection (7), any liability of the taxable supplier under the Act ( other than any liability subsisting before the agent's appointment) including any liability to- ( a) keep and preserve, or produce any records or accounts; (b) furnish a tax return; ( c) pay tax or interest under the Act; ( d)comply with any requirement of the Commissioner-General in respect of the business; shall on and from the appointment, and without affecting such liability of the supplier, subsist to the like extent and severally against the tax agent until such time as the Commissioner-General accepts the appointment of another tax agent. (9) For the purpose of this section, a supply of services shall include the supply of services that is made by a supplier who is resident or carries on business outside Zambia to a recipient who is resident in Zambia. Amendment of section 9

5. Section nine of the principal Act is amended by the- ( a) insertion immediately after subsection (2) of the following new subsection: Value Added Tax (Amendment) [No. 2 of 2003 11 (3) Tax on animported service shall be charged on the taxable value of the service at the prescribed rate of tax; and (b) re-numbering of subsections (3) and (4) as (4) and (5) respectively.

6. Section twelve_of the principal Act is amended by the insertion immediately after subsection (1) of the following new subsection: ( IA) A service shall b,e regarded as supplied in Zambia- Am:n:lm,t of section 12 ( a) if the supplier of the services- (i) has a place of business in Zambia and no place of business elsewhere; (ii) does not have a place of business in Zambia and elsewhere but the supplier's usual place of residence is in Zambia; or (iii) if the supplier of the services has a place ofbusiness in Zambia and elsewherebuttheplace ofbusiness most directly concerned with the supply of the services in question is the oneinZambia. (b) if the service is imported.

7. The principal Act is amended by the repeal of section twenty­ nine and the substitution thereforof the following:

29. A supplierwho- ( a) contravenes any term or condition of that supplier's registration; or (b) not being a taxable supplier, holds oneself out as such; Repeal and replacement of section 29 Offences and penalties commits an offence and shall be liable, upon conviction, to a fine not exceeding ten thousand penalty units or to imprisonment fora term not exceeding twelvemonths, orto both.

8. The principal Actis amended by the insertion immediately after section twenty-nine of the following new section: Insertion of new section 29A 29A A supplier who being required to apply or registerunder Late this Part fails to do so within one month after becoming liable to Regi,ttation apply shall pay a late registration fee of ten thousand fee units for each standard tax period the supplier remains unregistered after qualifying for the registration threshold.

9. Section fifty-one of the principal Act is amended in subsection (2)by the- Amendment of section 51 (a) deletion of the word "and" at the end of paragraph (f); 12 No. 2 of 2003] Value Added Tax (Amendment) _,- (b) deletion of the full stop after ,paragraph (g) and the substitution therefor of a semi colon and the word "and" ; and ( c) addition immediately after paragraph ( g) of the following uew paragraph: (h) the useofcashregisters by retailers or such other equipment as the Commissioner-General may consider appropriate in recording daily sales, / . ' . ' I,