Value Added Tax (Amendment) Act, 2007

1. ( I) This Act may be cited as the Value Added Tax (Amendment) Act, 2007, and shall be read as one with the Value . Added Ta'C Act, in this Act referred to as the principal Act. Short tiUe and � Cap.331 (2) This Act shall be deemed to have come into operation on 10th February, 2007.

2. Section Mo of the principal Act is amended by the insertion Amendment of section 2 in the appropriate place of the following new definition: " disbursement "means expenditure incurred by a supplier in the course of providing goods or services to a customer.

3. 1l1e principal Act is amended by the repeal of section three A and the substitution therefor of the following section:

3A. (I) Where a person in business as a sole proprietor is a registered supplier, that person shall be taken to be the supplier of any goods or services supplied in the course of the business and is liable for any ta'C due under this Act. (2) Any notice of assessment or other notice given under this Act to a person referred to in subsection (I) may be addressed to the person. (3) Where a person referred to in subsection (l) operates several businesses, the aggregate turnover from the businesses shall be used to determine the eligibility of the person for ta'( Repeal and replacement of section JA Application of Act to soJe proprietor ships Singlt! copies of this A.ct may be obrainedfrom the Government Pri,11.:r. P.O. Bo.< 30/]6, J(J/01 lusoka. Price K500 eoch ., ! •, 1 . I . • 56 No. 3 of 2007) Value Added Tax Insertion of new section 17A Proof of disbursements registration. (4) Notwithstanding subsection (3), a person referred to in subsection (I) who operates several businesses may register the businesses separately if each of the businesses reaches the turnover threshold as prescribed by the Minister, by statutory instrument. (5) A person referred to in subsection (1) and operating several businesses shall furnish the Commissioner-General with details of the businesses.

4. The principal Act is amended by the insertion immediately after section seventeen of the following new section: 17 A. (I) A taxable supplier who does not charge value added tax on any amount on an invoice to a client, on the ground that the amount was for disbursements shall prove, to the satisfaction of the Commissioner-General, that- (a) the supplier paid a third party while acting on behalf of that supplier_'s client; (b) the goods or services were actually provided by the third party; ,,.. (c) the supplier's outlay is itemised separately from disbursements on the invoice to the client; and (d) the supplier has recovered the exact amount of disbursements paid to the third party. (2) The provisions of section thirty-seven shall apply for purposes of the infonnation required to be supplied by the taxable supplier to the Commissioner-General under subsection(!). ' ., i l (✓ t 1 '