VALUE ADDED TAX ACT
Arrangement of Sections
Section
PART I
PRELIMINARY
1. Short title
2. Interpretation
3. Application of this Act to partnerships
3A. Application of Act to sole proprietorships
4. Application of this Act to unincorporated organisations
5. [Repealed]
6. Application of this Act to Government agencies
PART II
VALUE ADDED TAX
7. Taxable supplies
7A. Record of sales
8. Imposition and scope of tax
8A. Repealed
8B. Value added tax withholding agent
9. Rate of tax
10. Taxable value of supplies and importations
11. Place of supply of goods
12. Place of supply of services
13. Time of supply of goods or services
14. Time of importation
15. Exemption and zero-ratings
15A Reduction of value added tax in tax free zone
PART III
ACCOUNTING FOR AND PAYMENT OF TAX
16. Tax returns
17. Late lodgment of returns
18. Tax deductions and credits
19. Payment of tax or credit
20. Interest on overdue tax
21. Assessment of tax
PART IV
DEFAULT IN PAYMENT OF TAX
22. Recovery of tax and interest
23. Attachment of debts, etc.
24. Security and production of evidence
24A. Charge on land
25. Requirement for early payment
26. Distress
PART V
REGISTRATION OF SUPPLIERS
27. Register of suppliers
28. Registration
29. Offences and penalties.
29A Late registration
PART VI
REVIEWS AND APPEALS
30. Right of review
31. Conduct of review
32. Appeals
PART VII
ADMINISTRATION AND ENFORCEMENT
33. Functions of Authority
34. Delegation by Commissioner-General
35. Authorised officers
36. Taking of samples
37. Furnishing of information and production of documents
37A. Prohibition of publication or disclosure of information to unauthorised persons
38. Entry and search
38A. Impounding and removal of goods
39. Obstruction of authorised officers
40. Impersonation of authorised officers
41. Immunity of authorised officers
PART VIII
MISCELLANEOUS
42. Records and accounts
42A. Repealed
42B. Electronic monitoring of tax compliance
42C. Use of electronic payment machine
43. False returns and statements
44. Evasion of taxation
45. Fine in lieu of prosecution
46. Advertised retail prices to include tax
46A. Offences by principal officers, partners or shareholders of bodies corporate or bodies unincorporate
47. Adjustment of contracts on changes in tax
48. Priority of tax debts in bankruptcy
49. Evidence by certificate
50. Schemes for obtaining undue tax benefits
50A. Tax information exchange agreements and mutual assistance in tax matters
51. Regulations
52. Administrative rules
53. Transitional registration provisions
54. Other transitional provisions
55. Repeal of Cap. 663 of the 1971 edition and Act 25 of 1990
AN ACT
to impose a tax on the supply of goods and services in Zambia and the importation of goods into Zambia; to repeal the Sales Tax Act and the Insurance Levies Act; and to provide for matters connected with or incidental to the foregoing.
[1st May, 1995]
Act 4 of 1995,
Act 2 of 1997,
Act 6 of 1998,
Act 1 of 1999,
Act 6 of 2000,
Act 3 of 2001,
Act 10 of 2001,
Act 2 of 2002,
Act 2 of 2003,
Act 2 of 2004,
Act 2 of 2005,
Act 8 of 2006,
Act 3 of 2007,
Act 3 of 2008,
Act 3 of 2009,
Act 48 of 2010,
Act 30 of 2011,
Act 14 of 2012,
Act 15 of 2013,
Act 13 of 2014,
Act 17 of 2015,
Act 44 of 2016,
Act 12 of 2017,
Act 15 of 2018,
Act 14 of 2019,
Act 23 of 2020,
Act 44 of 2021,
Act 26 of 2022,
Act 27 of 2023.
SI 88 of 1995,
SI 91 of 1995,
SI 103 of 1995,
SI 108 of 1995,
SI 122 of 1995,
SI 146 of 1995,
SI 150 of 1995,
SI 22 of 1996,
SI 27 of 1996,
SI 61 of 1996,
SI 79 of 1996,
SI 110 of 1996,
SI 11 of 1997,
SI 16 of 1997,
SI 33 of 2008,
SI 89 of 2010,
SI 49 of 2011,
SI 50 of 2011,
SI 132 of 2011,
SI 133 of 2011,
SI 92 of 2012,
SI 93 of 2012,
SI 81 of 2013,
SI 96 of 2013,
SI 97 of 2013,
SI 68 of 2014,
SI 69 of 2014.
[General Note— Value Added Tax Act is amended by the deletion of the words “electronic fiscal device” wherever the words appear and the substitution therefor of the words “electronic invoicing system” by s 6 of the Act 27 of 2023 w.e.f. 1 January 2024.]
PART I
PRELIMINARY
This Act may be cited as the Value Added Tax Act.
(1) In this Act, unless the context otherwise requires—
"accounting year" means a period of 12 months ending on 31st December or such other period as the Commissioner-General may prescribe;
[Subs by s 2 of Act 30 of 2011.]
"authorised officer" means a person appointed under section 35 to be an authorised officer for the purposes of this Act;
"Authority" means the Zambia Revenue Authority established by the Zambia Revenue Authority Act;
"commercial property" means a building that is used for commercial purposes, or land designated or sold for commercial purposes, and includes an office building, an industrial building, a health facility, hotel, shopping mall, retail store, shopping centre, warehouse, garage, recreation centre, dwelling house used for commercial purposes and multi-facility building;
[Subs by s 2 of Act 26 of 2022.]
"Commissioner-General" means the Commissioner-General appointed under Zambia Revenue Authority Act;
"cross-border electronic services" means electronic services supplied in the Republic by a supplier who is resident or carries on business outside the Republic;
[Ins by s 2(c) of Act 27 of 2023 w.e.f. 1 January 2024.]
"disbursement" means expenditure incurred by a supplier in the course of providing goods or services to a customer;
[Ins by s 2 of Act 3 of 2007.]
...
["electronic commerce" rep by s 2(a) of Act 27 of 2023 w.e.f. 1 January 2024.]
...
["electronic commerce" rep by s 2(a) of Act 27 of 2023 w.e.f. 1 January 2024.]
...
["electronic fiscal printer" rep by s 2(a) of Act 27 of 2023 w.e.f. 1 January 2024.]
"electronic invoicing system" means the core system and any other system which has a fiscal memory capable of generating and storing fiscal information and transmitting production, invoicing and stock data in real time to the Authority, and has the capacity to generate and record data and other reports and includes software applications and web based applications;
[Ins by s 2(c) of Act 27 of 2023 w.e.f. 1 January 2024.]
"electronic payment machine" means a payment terminal used by a taxable supplier to receive a payment;
[Ins by s 2 of Act 14 of 2019 w.e.f. 1 January 2020.]
"electronic service" means a service provided or delivered on or through the internet, electronic or digital network;
[Subs by s 2(b) of Act 27 of 2023 w.e.f. 1 January 2024.]
...
[Subs by s 2(b) of Act 27 of 2023 w.e.f. 1 January 2024.]
"electronic fiscal device" means an electronic device, approved by the Commissioner-General, which has a fiscal memory capable of generating and storing fiscal information and has the capacity to generate or record tax invoices and other reports and is capable of transmitting invoice data in real time to the tax invoice management system of the Authority, and includes a fiscalised electronic register, an electronic fiscal printer and an electronic signature device;
["electronic signature device" rep by s 2(a) of Act 27 of 2023 w.e.f. 1 January 2024.]
"exempt importation" means an importation of goods described in the First Schedule;
"exempt supply" means a supply of goods or services described in the First Schedule;
"finance lease" means a lease of implements, machinery or plant where—
(a) the term of the lease, including any period under an option to renew, is equal to or exceeds 75 per centum of the effective life of the leased implements, plant or machinery;
(b) the lessee has an option to purchase the implements, plant or machinery at the expiration of the lease for a fixed or determinable price;
(c) the estimated residual value of the implements, plant or machinery at the expiration of the lease term is less than 25 per centum of its fair market value at the commencement of the lease; or
(d) the lessor does not retain the risks and rewards of ownership; and
[Ins by s 2 of Act 3 of 2008.]
...
["fiscal cash register" rep by s 2(a) of Act 15 of 2018.]
...
["fiscal memory" rep by s 2(a) of Act 27 of 2023 w.e.f. 1 January 2024.]
...
["fiscalised electronic register" rep by s 2(a) of Act 27 of 2023 w.e.f. 1 January 2024.]
"fiscal memory" means a programmable read-only memory permanently built into a fiscalised electronic register or device to store tax information at the time of sale and is only accessed by the Authority or an authorised person;
[Ins by s 2(b) of Act 15 of 2018.]
"fiscalised electronic register" means an electronic device, approved by the Commissioner-General, which has a fiscal memory to record and calculate transactions for purposes of tax at a point of sale and secures the transactions against unauthorised manipulation and deletion and is capable of transmitting the transactions in real time or, where transactions cannot be transmitted in real time, in batches to the invoice management system of the Authority;
[Ins by s 2(b) of Act 15 of 2018.]
"goods" means any article or substance of value, any immovable property and any interest in land, but does not include money, securities or any chose in action;
"Government agency" means—
(a) any Ministry or Department of the Government;
(b) any statutory corporation or board; or
(c) any local authority.
(d) any institution or body in which the Government has direct or indirect control or which is wholly or partially owned by the Government;
[(d) subs by s 2(a) of Act 2 of 1997.]
"health facility" has the meaning assigned to it in the Health Professions Act;
[Ins by s 2(b) of Act 48 of 2010.]
"importation of goods" includes any dealing with goods that renders the goods liable to any duty or other impost under the Customs and Excise Act;
"imported service" means a service rendered by a supplier who is resident outside the Republic and—
(a) performed or undertaken in the Republic; or
(b) the benefit of the service is for a recipient in the Republic
[Ins by s 2(c) of Act 27 of 2023 w.e.f. 1 January 2024.]
"industrial park" has the meaning assigned to it in the Zambia Development Agency Act;
[Ins by s 2 of Act 3 of 2009.]
"input tax" has the meaning ascribed to it in section 18;
"multi-facility economic zone" has the meaning assigned to it in the Zambia Development Agency Act;
[Ins by s 2 of Act 3 of 2009.]
"operating lease" means any lease of implements, plant or machinery, other than a finance lease;
[Ins by s 2 of Act 3 of 2008.]
"prescribed accounting period", in relation to a taxable supplier, means the accounting period determined under section 16 that is applicable to that supplier;
"prescribed interest rate" means the rate that exceeds, by two per centum per annum, the prevailing official discount rate, as published by the Bank of Zambia, that is in force on the 22nd day of each month;
[Subs by s 2(b) of Act 2 of 1997.]
"registered" means registered under Part V;
"supplier" means—
(a) a person, corporation, partnership, joint venture or organisation that supplies goods or services;
[Subs by s 2 of Act 6 of 1998; am by s 2(a) of Act 1 of 1999.]
(b) any Government agency;
"supply of a service" includes—
(a) the provision of goods on lease, hire or loan;
(b) a treatment of any goods;
(c) any other activity which the Minister, by regulation, declares to be the supply of a service for the purposes of this Act;
but does not include—
(i) the provision of any service without consideration, except in so far as the Minister, by regulation, otherwise determines; or
(ii) any other activity which the Minister by regulation declares not to be a supply of a service for the purposes of this Act;
"supply of goods" means—
(a) a sale of goods;
(b) a gift of goods;
(c) where goods are obtained by a taxable supplier for the purposes of a business carried on by him or are, in the course of such a business, manufactured or produced for supply, an appropriation or transfer of possession of the goods—
(i) for his own use or consumption, or for use or consumption by him and others; or
(ii) for use or consumption by his employees or partners, or otherwise in connection with a business carried on by him; or
(d) any other dealing with the goods (other than the supply, in relation thereto, of a service) which the Minister, by regulation, declares to be a supply of the goods for the purposes of this Act;
but does not include an importation of the goods, or any dealing with the goods which the Minister, by regulation, declares not to be a supply of the goods for the purposes of this Act;
"tax" means value added tax imposed by section 8 or additional tax payable under section 17, and "taxation" shall be construed accordingly;
"tax commencement day" means such day, being the first day of a month, as the Minister may, by statutory order, appoint;
"tax invoice" means an invoice, showing such particulars as the Commissioner-General may, by administrative rule, prescribe, relating to a taxable supply of goods or services;
"tax return" means a return referred to in section 16;
"taxable importation" means an importation of goods that takes place in Zambia after the tax commencement day, other than an exempt importation;
"taxable supplier" means a person who is registered or is required by this act to be registered and includes a tax agent or recipient of imported services referred to in section 8;
[Subs by s 2 of Act 2 of 2003.]
"taxable supply" has the meaning ascribed to it in section 7;
"taxable value", in relation to goods or services supplied, or goods imported, means their taxable value ascertained in accordance with section 10,unless the Ministry by regulation, in relation to specified supplies or imports, declares a different value;
[Am by s 2(c) of Act 2 of 1997.]
"Tribunal" means the Revenue Appeals Tribunal established under the Revenue Appeals Tribunal Act; and
[Subs by s 2(a)(ii) of Act 48 of 2010.]
"zero-rated supply" means a supply of goods or services described in the Second Schedule.
(2) In this Act, a reference to a supply of goods or services in the course or furtherance of a business includes—
[S 2(2) am by s 2(b)(i) of Act 1 of 1999.]
(a) a reference to a supplies made by a supplier during any enterprise or activity which is carried on continuously or regularly, in the course or furtherance of which, goods or services are supplied to any other person for consideration, whether or not for profit, including any trade, profession or vocation and any concern of a continuing nature or in the form of an association or club;
(b) a reference to a supply of goods or services for the promotion of a business; or
[S 2(2)(b) am by s 2(b)(ii) of Act 1 of 1999.]
(c) anything done in connection with the cessation, liquidation or receivership or the intended cessation, liquidation or receivership;
[S 2(2) subs by s 2(d) of Act 2 of 1997, s 2(2)(c) ins by s 2(b)(iii) of Act 1 of 1999.]
3. Application of this Act to partnerships
(1) Where a firm consisting of two or more individuals in partnership is a registered supplier, the firm shall be taken, for the purposes of this Act, to be the supplier of any goods and services supplied in the course of the business of the firm; 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 sufficiency 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 determining for the purposes of this Act whether any goods or services are supplied to, or by, a partnership, no account shall be taken of any change in the partnership.
(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 Commissioner-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 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 partnership;
shall be deemed to have been served on him.
3A. Application of Act to sole proprietorships
(1) 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 tax due under this Act.
(2) Any notice of assessment or other notice given under this Act to a person referred to in sub-section (1) may be addressed to the person.
(3) Where a person referred to in sub-section (1) operates several businesses, the aggregate turnover from the businesses shall be used to determine the eligibility of the person for tax registration.
(4) Notwithstanding sub-section (3), a person referred to in sub-section (1) 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 sub-section (1) and operating several businesses shall furnish the Commissioner-General with details of the businesses.
[S 3A subs by s 3 of Act 3 of 2007.]
4. Application of this Act to unincorporated organisations
(1) Where a club, association or other unincorporated organisation is a registered supplier, the organisation shall be taken, 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 organisation shall be deemed to be the supplier of such goods and services.
(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 member 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 consequence, shall be limited to such proportion of the organisation’s liability as may be just in the circumstances.
[S 5 rep by s 2 of Act 44 of 2016 w.e.f. 1 January 2017.]
6. Application of this Act to Government agencies
(1) Except to the extent to 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.
(2) The Minister may, by regulation, provide for the modification of any provision of this Act, or of any regulation or rule made under this Act, in its application to a Government agency.
(3) ...
[S 6(3) rep by s 3 of Act 44 of 2016 w.e.f. 1 January 2017.]
PART II
VALUE ADDED TAX
(1) For the purposes of this Act, any supply of goods or services made by a taxable supplier, in the course or furtherance of a business, that takes place in Zambia on or after the tax commencement day, other than an exempt supply, is a taxable supply.
[S 7(1) subs by s 3 of Act 1 of 1999.]
(2) Although tax is not payable on a zero-rated supply, the provisions of this Act, apart from section 8, shall otherwise apply to a zero-rated supply in the same way as to all other taxable supplies.
{mprestriction ids="2,3,5"}
(3) A taxable supplier shall issue a tax invoice for the supply of goods and services using an electronic invoicing system.
[S 7(3) subs by s 3 of Act 14 of 2019 w.e.f. 1 January 2020; am by s 7 of Act 27 of 2023 w.e.f. 1 January 2024.]
(4) Despite sub-section (3), the Commissioner-General may approve the issuance of a tax invoice using an approved computer application or pre-printed tax invoice by a taxable supplier.
[S 7(4) subs by s 3 of Act 14 of 2019 w.e.f. 1 January 2020.]
(5) A taxable supplier who fails to issue a tax invoice commits an offence and is liable, on conviction, in the case of a—
(a) first offence, to a penalty not exceeding one hundred thousand penalty units;
(b) second offence, to a penalty not exceeding two hundred thousand penalty units; and
(c) third or subsequent offence, to a penalty not exceeding three hundred thousand penalty units, or to imprisonment for a term not exceeding three years, or to both.
[S 7(5) subs by s 2 of Act 44 of 2021 w.e.f. 1 January 2022.]
A taxable supplier shall use an electronic invoicing system to record each sale or transaction.
[S 7A(1) ins by s 4 of Act 14 of 2019 w.e.f. 1 January 2020; am by s 3(a) of Act 44 of 2021 w.e.f. 1 January 2022.]
(2) Despite sub-section (1), the Commissioner-General may approve the use of a document, device or equipment, other than an electronic invoicing system, for a certain category of taxable suppliers.
[S 7A(2) ins by s 4 of Act 14 of 2019 w.e.f. 1 January 2020.]
(3) A taxable supplier that contravenes this section commits an offence and is liable, on conviction, in the case of a—
(a) first offence, to a penalty not exceeding one hundred thousand penalty units;
(b) second offence, to a penalty not exceeding two hundred thousand penalty units; and
(c) third or subsequent offence, to a penalty not exceeding three hundred thousand penalty units or to imprisonment for a term not exceeding three years, or to both.
[S 7A(3) subs by s 3(b) of Act 44 of 2021 w.e.f. 1 January 2022.]
8. Imposition and scope of tax
(1) A tax shall be charged, levied, collected and paid, in a prescribed manner, in respect of—
(a) taxable supply of goods or services, other than a zero-rated supply, made in the Republic in furtherance of a business by a registered supplier eligible for registration under section 28; and
(b) taxable importation of goods or services into the Republic, that takes place on or after the tax commencement day.
[S 8(1)(b) am by s 4(a) of Act 2 of 2003.]
that takes place on or after the tax commencement day.
(2) The reference in sub-section (1) to a supply of goods or services in the Republic includes a reference to a supply that, by the operation of section 11 or 12 or, of any rule made under those sections, is to be regarded as taking place in the Republic.
(3) Tax on a supply of goods and services is payable by the supplier of the goods or services and, subject to any other provisions made by or under this Act in relation to accounting, is due and payable at the time of supply.
(4) Tax on an importation of goods shall be charged as if it were a duty of customs under the Customs and Excise Act, and is payable, accordingly, by the importer of the goods.
(5) A recipient of an imported service shall pay tax on the importation of that service.
(6) The tax referred to under sub-section (5) shall be paid if the—
(a) recipient of the imported service has not paid tax due in the country of exportation;
(b) the supplier who is resident outside the Republic has not appointed a tax agent; or
(c) services supplied are not under the scope of cross-crossborder electronic services.
(7) The input tax corresponding to the tax paid under sub-section (5) shall be excluded from a claim, deduction or credit under section 18.
(8) A supplier who does not have a registered office or permanent address of business in the Republic shall appoint a person resident in the Republic as a tax agent to act on behalf of that supplier in matters relating to tax.
(9) A supplier shall apply to the Commissioner-General for registration of the tax agent appointed by that supplier under sub-section (8) in a manner determined by the Commissioner-General.
(10) Despite sub-section (8), the Commissioner-General may, on application by a supplier, exclude a supplier from appointing a tax agent.
(11) Where the Commissioner-General registers a tax agent appointed under sub-section (8), any liability of the taxable supplier under this Act, other than any liability subsisting before the agent’s appointment, shall on and from the date of appointment, and without affecting such liability of that supplier, subsist to a like extent and severally against the tax agent until a time as the Commissioner-General may determine.
(12) The liability of the taxable supplier that extends to a tax agent includes the liability to—
(a) keep and preserve, or produce records or accounts;
(b) furnish a tax return;
(c) pay tax or interest under the Act; and
(d) comply with any requirement of the Commissioner-General in respect of the business.
(13) For the purposes of this section, "supply of services" includes the supply of a service that is made by a supplier who is resident outside the Republic to a recipient who is resident in the Republic.
[S 8 subs by s 3 of Act 27 of 2023 w.e.f. 1 January 2024.]
[S 8A rep by s 4 of Act 27 of 2023 w.e.f. 1 January 2024.]
8B. Value added tax withholding agent
The Commissioner-General may appoint a person resident in the Republic as a tax agent to withhold tax on payments made to a taxable supplier of goods and services.
[S 8B ins by s 6 of Act 14 of 2019 w.e.f. 1 January 2020.]
(1) Tax on a taxable supply of goods or services shall be charged on their taxable value, at the prescribed rate of tax.
(2) Tax on a taxable importation of goods shall be charged on their taxable value, at the prescribed rate of tax.
(3) Tax on an imported service shall be charged on the taxable value of the service at the prescribed rate of tax.
[S 9(3) ins by s 5(a) of Act 2 of 2003.]
(4) The prescribed rate of tax shall be seventeen and a half per centum, unless the Minister, by statutory order, determines a lower rate.
[S 9(3) am by of SI 11 of 1997, renumbered as s 9(4) by s 5(b) of Act 2 of 2003.]
(5) 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.
[S 9(4) renumbered as s 9(5) by s 5(b) of Act 2 of 2003.]
10. Taxable value of supplies and importations
(1) Subject to this section, where goods or services are 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 services.
(2) Where goods or services are supplied—
(a) otherwise than for a monetary consideration;
(b) for a consideration that consists only partly of money; or
(c) for a consideration that is less than the open market value of the goods or services;
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 services.
(3) The taxable value of imported 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 importation.
(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.
(5) Where specified supplies that are listed in the Third Schedule are supplied locally by a taxable supplier, the taxable value of the supplies shall be the greater of—
(a) the taxable value ascertained in accordance with sub-section (1); or
(b) the amount by which the recommended retail price exceeds the tax payable in respect of the supply.
[S 10(5) ins by s 3 of Act 3 of 2009.]
(6) Where the specified supplies are imported, the taxable value of such supplies shall be the greater of—
(a) the taxable value ascertained in accordance with sub-section (3); or
(b) the amount by which the recommended retail price exceeds the tax payable in respect of the supply.
[S 10(6) ins by s 3 of Act 3 of 2009.]
(7) Every taxable supplier involved in the supply of goods and services listed in the Third Schedule shall submit to the Commissioner-General a schedule of the recommended retail prices, in such manner and form as the Commissioner-General may, by administrative rule, prescribe.
[S 10(7) ins by s 3 of Act 3 of 2009.]
(8) For the purposes of this Act, the taxable value—
(a) where a cash discount is granted, means the value of the tax ascertainable based on the undiscounted cash value; and
(b) where a trade discount is granted, means the value of the tax ascertainable based on the discounted price.
[S 10(8) ins by s 3 of Act 15 of 2018.]
(1) Goods shall be regarded, for taxation purposes, as being supplies in Zambia if—
(a) the goods are exported from Zambia;
(b) the goods are supplied within Zambia;
(c) the supply of the goods involve entry into Zambia; and
(d) the supply involves installation or assembly of the goods at a place in Zambia.
[S 11(1) subs by s 2 of Act 23 of 2020.]
(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 case or class of cases—
(a) the place at which goods are regarded, for taxation purposes, 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 significant;
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 so made shall have effect in the relevant case or cases, instead of the foregoing provisions of this section.
12. Place of supply of services
(1) This section shall have effect for determining whether services shall be regarded, for taxation purposes, as being supplied in Zambia.
(1A) A service shall be regarded as supplied in Zambia—
(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 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.
(b) if the service is imported.
[S 12(1A) ins by s 6 of Act 2 of 2003.]
(2) …
[S 12(2) rep by s 4 of Act 8 of 2006.]
(3) …
[S 12(3) rep by s 4 of Act 8 of 2006.]
(4) 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 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 significant;
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 so made shall have effect in the relevant case or cases, instead of the forgoing provisions of this section.
[S 12(4) rep by s 2(a) of Act 6 of 2000, s 12(5) renumbered as s 12(4) by s 2(b) of Act 6 of 2000.]
13. Time of supply of goods or services
(1) This section shall have effect for determining, for taxation purposes, the time at which goods or services are supplied.
(2) The time at which any goods are supplied shall be whichever is the earliest of the following times—
(a) the time when goods are removed from the premises of the supplier;
(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; or
(d) the time when a tax invoice is issued.
[S 13(2) subs by s 2(a) of Act 2 of 2004.]
(2A) 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 the taxi invoice is issued; or
(c) the time when the services are actually rendered or performed.
[S 13(2A) ins by s 2(b) of Act 2 of 2004.]
(3) Where, in respect of the supply of any goods or of any service, payment is received or a tax invoice is issued in respect of part of the supply, the time of supply of such goods or services shall be determined in accordance with sub-section (2) or (2A) and tax on that part of the supply shall be payable accordingly.
[S 13(3) subs by s 2(c) of Act 2 of 2004.]
(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 commodity, except to the extent that payment is sooner made, or a tax invoice is sooner issued, in respect of the supply.
(5) Where the Commissioner-General is on the opinion that, in relation to any case or class of cases—
(a) 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, if 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.
[S 13(5) rep by s 2(d) and 13(6) renumbered as s 13(5) by s 2(e) of Act 2 of 2004.]
For taxation purposes, goods shall be taken to be imported into Zambia at the time when they are regarded as so imported under the Customs and Excise Act.
15. Exemption and zero-ratings
The Minister may, by statutory order—
(a) approve, for the purpose of exemption from tax, any supply of goods or services or an importation of goods; or
(b) zero-rate a supply of goods or services.
[S 15 subs by s 2 of Act 13 of 2014.]
15A. Reduction of value added tax in tax free zone
The Minister may by, statutory instrument, reduce the value added tax for investors in manufacturing, agriculture, commercial banking and insurance who operate in an area declared a tax free zone under the Customs and Excise Act to such an extent as may be prescribed in that statutory instrument.
[S 15A ins by s 2 of Act 10 of 2001.]
PART III
ACCOUNTING FOR AND PAYMENT OF TAX
(1) Every taxable supplier shall, in respect of each prescribed accounting period, lodge with the Commissioner-General a tax return, in a form approved by the Commissioner-General, containing such information as the form 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.
(1A) A return shall be accompanied by such documents as the Commissioner-General may determine and shall be signed by the person lodging the return.
[S 16(1A) ins by s 2 of Act 14 of 2012.]
(2) A return with less than 10 transactions may be lodged manually and shall be submitted with five days after the end of the prescribed accounting period to which it relates or within such other time as the Commissioner-General may determine by notice.
[S 16(2) subs by s 3 of Act 13 of 2014.]
(2A) A return with 10 or more transactions shall be lodged electronically within 18 days after the end of the prescribed accounting period to which it relates or within such other time as the Commissioner-General may determine by notice.
[S 16(2A) ins by s 3 of Act 13 of 2014; am by s 5 of Act 44 of 2016 w.e.f. 1 January 2017, s 3(a) of Act 12 of 2017 w.e.f. 1 January 2018.]
(2B) A value added tax withholding agent shall lodge a return relating to value added tax withheld in the form and manner prescribed by the Commissioner-General within 16 days following the end of the prescribed accounting period to which it relates or within such other time as the Commissioner-General may determine by notice.
[S 16(2B) ins by s 3(b) of Act 12 of 2017 w.e.f. 1 January 2018.]
(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 particular supplier, determines another prescribed accounting period for that supplier.
(4) A form of return approved by the Commissioner-General for the purposes of sub-section (1) shall, on request, be made available to any taxable supplier.
(1) A taxable supplier who fails to lodge a return within the time allowed by or under this 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) A taxable supplier who lodges a return but fails to pay the tax due on the return within the prescribed time shall pay additional tax of one half of one per cent of the tax payable in respect of the prescribed accounting period covered by the return for each day following the day when the payment is due to the date that the payment of the tax is made.
[S 17(2) subs by s 4 of Act 13 of 2014.]
(3) Additional tax prescribed by this section is payable 21 days after the date on which it is incurred.
[S 17(2) renumbered as s 17(3) by s 3(b) of Act 2 of 1997.]
(4) 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.
[S 17(3) renumbered as s 17(4) by s 3(b) of Act 2 of 1997.]
(5) Where the taxable supplier fails to make a tax return within the time allowed and did not intend to avoid or postpone liability to pay tax, the additional tax payable under this section may be remitted in whole or in part.
[S 17(5) ins by s 3(c) of Act 2 of 1997.]
(6) The Commissioner-General may accept a pecuniary settlement instead of taking proceedings for the recovery of a penalty under this section and may, in his discretion, mitigate or remit any penalty or stay or compound any proceedings for recovery thereof and may, after judgment in any proceedings under this Act, further mitigate or entirely remit the penalty in accordance with administrative rules prescribed by the Commissioner-General
[S 17(6) ins by s 3 of Act 6 of 1998.]
(1) 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 37 shall apply for purposes of the information required to be supplied by the taxable supplier to the Commissioner-General under sub-section (1).
[S 17A ins by s 4 of Act 3 of 2007.]
18. Tax deductions and credits
(1) The amount of any tax (in this Act referred to as "input tax") of the following character—
(a) tax payable in respect of the supply of goods or services supplied to a registered supplier during a prescribed accounting period for the purposes of a business carried on or to be carried on by him; and
(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 or otherwise credited to him 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, or credited to, a registered supplier shall be—
(a) the whole of that tax, if all the supplies effected by him in the course of his business are taxable; or
(b) such proportion of that tax as, in accordance with administrative rules made by the Commissioner-General, 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) A supplier shall not deduct, credit, or claim input tax, unless the supplier at the time of lodging the return in which the deduction, credit or claim is made, is in possession of—
(a) a tax invoice issued from a serially numbered invoice book;
(b) a tax invoice issued from a computer package authorised by the Commissioner-General for the purpose of invoicing taxable supplies;
(c) an invoice issued from the approved invoicing system;
(d) an invoice with contents in accordance with the administrative rule made by the Commissioner-General; or
(e) in the case of imported goods, import bills of entry and documentary evidence of the payment of tax that the Commissioner-General may, by administrative rule, determine.
[S 18(3) subs by s 5 of Act 27 of 2023 w.e.f. 1 January 2024.]
(4) Input tax shall not be deducted or credited after a period of 90 days from the date of the relevant tax invoice or other evidence referred to in sub-section (3) to the date of submitting the return, except in circumstances as the Commissioner-General may by rule, specify.
[S 18(4) subs by s 4 of Act 26 of 2022.]
(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 importer, or the person supplied; or such other factors as the regulations may prescribe.
(6) Without limiting the generality of paragraph (b) of sub-section (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 determined 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.
(1) A taxable supplier whose tax liabilities in respect of a particular prescribed accounting period are not exhausted by allowable deductions shall, within the time allowed for lodgment of his tax return for that period, remit the tax amount due to the Commissioner-General.
(1A) The Minister may, on the recommendation of the Commissioner-General, by statutory instrument, remit the whole or part of any tax due and is not recoverable under sub-section (1), if the tax liabilities meet the following conditions—
(a) the taxable supplier has—
(i) been declared bankrupt by the High Court under the Bankruptcy Act; or
(ii) in the case of a company, has been wound-up by the High Court under the Companies Act;
(b) the debt has been outstanding for a minimum period of five years;
(c) in the case of a privatised company, the debt was incurred before the date of privatisation, unless the contract of sale stipulates that the company's liabilities are to be carried over by the new owners;
(d) there is provided a certificate of deregistration or notice of value added tax registration cancellation issued by the Authority; and
(e) such other documentary evidence as the Commissioner-General may require.
[S 19(1A) ins by s 3(a) of Act 3 of 2008; relettered as s 19(1B) by s 7(b) of Act 14 of 2019 w.e.f. 1 January 2020; s 19(1A) rep and s 19(1B) relettered as s 19(1A) by s 3 of Act 23 of 2020.]
(2) Where, in respect of a particular accounting period, beginning on or after 1st April, 1998, a registered supplier’s allowable credits exceed what would have been the supplier's tax liabilities for the accounting period, the Commissioner-General shall, within 30 days after the return is submitted, remit to the supplier the amount standing to the credit of the supplier by reason of the excess.
[S 19(2) subs by s 3 of Act 15 of 2013.]
(2A) Where any tax is due and payable by a registered supplier to the Commissioner-General under the Income Tax Act, the Customs and Excise Act and the Property Transfer Tax Act or any other written law administered by the Commissioner-General, any excess due to the registered supplier shall first be applied to satisfy the tax due and payable to the extent of such tax and the Commissioner-General shall give written notice to the taxable supplier of the amount so applied to meet the tax liability under the relevant tax Act and the nature of the tax.
[S 19(2A) ins by s 3 of Act 15 of 2013.]
(3) A tourist, commercial exporter, diplomat or designated official who has paid tax in Zambia may submit a claim for a refund of the tax, in whole or in part.
[S 19(3) ins by s 2 of Act 2 of 2005; am by s 3(b) of Act 3 of 2008.]
(4) Where a claim is submitted by a tourist, commercial exporter, diplomat or designated official under sub-section (3), the Commissioner-General shall, subject to such conditions as the Commissioner-General may prescribe, pay the tax in whole or in part to the claimant.
[S 19(4) ins by s 2 of Act 2 of 2005; am by s 3(b) of Act 3 of 2008.]
(5) In sub-section (3), "commercial exporter" means a non-Zambian person who—
(a) ordinarily resides in a country outside Zambia; and
(b) enters Zambia for the purpose of purchasing goods in bulk for export.
[S 19(5) ins by s 2 of Act 2 of 2005.]
(1) 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.
(2) Simple interest shall be payable, under this section at each prescribed accounting period, by the supplier, concerned, according to the number of accounting periods, or part of any accounting period, during which tax overdue and payable remains unpaid.
[S 20(3) subs by s 3(a) of Act 6 of 2000; s 20(2) rep by s 3(a) and 20(3) renumbered as s 20(2) by s 3(b) of Act 2 of 2002.]
(3) Interest shall not be applied on additional tax referred to under section 17.
[S 20(4) subs by s 3(b) of Act 6 of 2000, renumbered as s 20(3) by s 3(b) of Act 2 of 2002.]
(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—
(a) his failure to keep proper books of account, records or documents as required under this Act, or the incorrectness 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 returns;
the Commissioner-General may assess the tax due and any interest payable thereon.
(2) Notice of an assessment shall be sent to the taxable supplier concerned and the notice shall inform the supplier of the right to appeal.
[S 21(2) subs by s 4(a) of Act 6 of 2000.]
(3) Subject to any rights of appeal conferred by this Act or any other law, the assessment of the Commissioner-General is conclusive 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) Where the Commissioner-General has given notice of assessment to a taxable supplier under sub-section (2), the supplier shall, subject to sub-section (7), pay the amount of tax specified in the notice, not later than 30 days from the date of the notice.
[S 21(4) ins by s 4(b) of Act 6 of 2000.]
(5) Where a taxable supplier fails to pay an assessment within the period specified under sub-section (4), the provisions of section 26 shall apply.
[S 21(5) ins by s 4(b) of Act 6 of 2000.]
(6) Despite the other provisions of this section, an assessment based on an incorrect or inadequate return is void if it is made two years after the Commissioner-General concludes an audit which revealed that incorrect or inadequate return.
[S 21(4) renumbered as s 21(6) by s 4(d) of Act 6 of 2000; subs by s 4 of Act 23 of 2020.]
(7) On sufficient cause shown to the Commissioner-General within the appeal period, or within such further time as the Commissioner-General may allow, the Commissioner-General may make a revised assessment 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.
[S 21(5) renumbered as s 21(7) by s 4(d) of Act 6 of 2000.]
(8) Any tax and interest assessed under this section shall be recoverable after or within the review period immediately after the Commissioner-General determines the matter whichever occurs earlier.
[S 21(6) renumbered as s 21(8) by s 4(d) of Act 6 of 2000; subs by s 4 of Act 15 of 2013.]
(9) In this section, "review period" means a period of 30 days from the date of notice of assessment.
[S 21(7) subs by s 4(c) of Act 6 of 2000; renumbered as s 21(9) by s 4(d) of Act 6 of 2000; subs by s 4 of Act 15 of 2013.]
PART IV
DEFAULT IN PAYMENT OF TAX
22. Recovery of tax and interest
(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 invoice 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 this Act or the regulations 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.
(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.
(2) 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 10 per centum of the amount demanded by the notice, whichever is the greater.
[S 23(2) rep by s 5(a) and 23(3) renumbered as s 23(2) by s 5(b) of Act 1 of 1999.]
24. Security and production of evidence
(1) 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—
(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, for the payment of any tax which is due from him.
[S 24 renumbered as s 24(1) by s 4(a) of Act 2 of 1997.]
(2) Where a registered supplier continues to make taxable supplies beyond the time allowed by the Commissioner-General under paragraph (b) of sub-section (1) as security or further security, the supplier shall be guilty of an offence and shall be liable, upon conviction, to a fine not exceeding ten thousand penalty units or to imprisonment for a term not exceeding 12 months, or to both.
[S 24(2) ins by s 4(b) of Act 2 of 1997.]
(1) Notwithstanding anything to the contrary contained in any other written law, where a person or partnership from whom tax is due owns land in the Republic, the Commissioner-General may give notice to the person or partnership, in writing, stating that the amount of tax due shall be a charge on the land and is immediately created.
(2) The charge referred to in sub-section (1)—
(a) is effective from the date of service of the notice;
(b) remains valid until—
(i) there is a change in the ownership of the land; or
(ii) the notice is withdrawn; and
(c) shall be registered in accordance with the Lands and Deeds Registry Act.
(3) For the purposes of this section, "land" includes any vacant piece of land and any building or improvements on any piece of land.
[S 24A ins by s 5 of Act 15 of 2013.]
25. Requirement for early payment
(1) Where the Commissioner-General has reason to believe that any tax or interest due under this Act from a taxable supplier may not 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 of the money forthwith.
(2) Upon service of a notice under this section, the provision 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.
(3) Where a taxable supplier fails to make any payment required under sub-section (1), the supplier shall be guilty of an offence and shall be liable, upon conviction, to a fine not exceeding ten thousand penalty units or to imprisonment for a term not exceeding 12 months, or to both.
[S 25(3) ins by s 5 of Act 2 of 1997.]
(1) Where any tax or interest due from a taxable supplier remains unpaid, an authorised officer may, under warrant by the Commissioner-General, levy distress upon the goods and chattels of the supplier.
(2) The officer executing the warrant, with a police officer or such other assistants as he may consider necessary, may, at any time between sunrise and sunset, break open any premises of the supplier.
(3) Goods and chattels on which distress has been levied under this section shall be kept for 10 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 sub-section (3), within the period of 10 days mentioned in that sub-section, the goods and chattels shall be sold by public auction, sealed tenders or bids.
[S 26(4) am by s 5 of Act 6 of 2000.]
(5) The proceeds of a sale under sub-section (4) shall be applied towards payment of those costs and any further costs of, or incidental, to the sale, and the surplus, if any, shall be applied towards payment of the amount due and the balance, if any, shall be paid to the supplier, after deduction of any further tax or interest by then 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 away any such goods and chattels to prevent the Commissioner-General from distaining 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 12 months;
or to both.
PART V
REGISTRATION OF SUPPLIERS
(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, registration may be effected in the name of the firm.
(3) Where a club, association or other unincorporated organisation carries on a business involving the supply of goods or services, registration may be effected in the name of the organisation.
(4) ...
[S 27(4) rep by s 7 of Act 44 of 2016 w.e.f. 1 January 2017.]
(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 circumstances 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.
(1) Every supplier who is carrying on a business in Zambia 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 sub-section (1).
(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) The registration of a supplier shall take effect—
(a) in the case of a new business, from the date of commencement of trading; or
(b) in the case of a continuing business—
(i) within one month of an application being made from the date the application was received by the Commissioner-General; or
(ii) where the application is not made within one month of first becoming liable to register, on the day following the first period during which the taxable turnover exceeded the turnover as specified in sub-section (1).
[S 28(6) subs by s 5 of Act 6 of 1998.]
(7) Taxable suppliers whose turnover falls below the registration threshold for value added tax within a particular accounting year shall be de-registered at the end of the accounting year;
[S 28(7) ins by s 5(a) of Act 13 of 2014.]
(8) In this section, "taxable turnover" means that part of the turnover of a business that is attributable to taxable supplies, calculated in a manner, and in respect of a period, prescribed by the Minister by statutory order.
[S 28(6) renumbered as s 28(7) by s 6(b) of Act 2 of 1997; s 28(7) renumbered as s 28(8) by s 5(b) of Act 13 of 2014.]
A supplier who—
(a) contravenes any term or condition of that supplier’s registration; or
(b) not being a taxable supplier, holds oneself out as such;
commits an offence and shall be liable, upon conviction, to a fine not exceeding ten thousand penalty units or to imprisonment for a term not exceeding 12 months, or to both.
[S 29 subs by s 7 of Act 2 of 2003.]
A supplier who being required to apply or register under this Part fails to do so within one month after becoming liable to 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.
[S 29A ins by s 8 of Act 2 of 2003.]
PART VI
REVIEWS AND APPEALS
[Part VI subs by s 4 of Act 14 of 2012.]
A person who is aggrieved by a decision made or direction given by the Authority under this Act may apply to the Commissioner-General for a review of that decision or direction in the prescribed manner and form.
[S 30 subs by s 4 of Act 14 of 2012.]
(1) A review shall be conducted in the prescribed manner.
(2) The person conducting the review shall give the applicant and the person who made the decision or gave the direction an opportunity to be heard and to make written submissions.
[S 31 subs by s 4 of Act 14 of 2012.]
A person aggrieved by a decision of the Commissioner-General under this Act may appeal against the decision to the Revenue Appeals Tribunal as provided under the Revenue Appeals Tribunal Act.
[S 32 subs by s 4 of Act 14 of 2012.]
PART VII
ADMINISTRATION AND ENFORCEMENT
(1) 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 19, 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 sub-section (2), tax collected under this Act shall be credited to the Treasury as soon as is reasonably practicable, and the provisions of sections 24 and 25 of the Zambia Revenue Authority Act, shall apply in respect of revenue derived from tax under this Act.
34. Delegation by Commissioner-General
(1) The Commissioner-General shall have and may exercise and perform the powers and functions conferred on him by or under this Act.
(2) ...
[S 34(2) rep by s 5 of Act 23 of 2020.]
(3) The Commissioner-General may confer any of the functions of the Commissioner-General under this Act upon any person if that person consents; and that person shall perform those functions under the direction of the Commissioner-General.
[S 34(3) ins by s 2 of Act 3 of 2001.]
(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.
(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.
(1) Where an authorised officer has reason to believe that it is necessary to do so for the protection of the revenue, he may take, from goods in the possession of any person who supplies goods, such samples as 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 without the 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.
37. Furnishing of information and production of documents
(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 are, in the course of a business, 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 has legitimate access and which concerns the goods or their supply; 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 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 reasonable time and for a reasonable period.
(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 has legitimate access and which concerns the 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 document, 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) For the 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, sub-sections (1) and (2) shall be deemed to empower the authorised officer, for the purpose of exercising the powers conferred by that sub-section 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 on 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 damaged, the Authority shall be liable to compensate their owner for any expenses reasonably incurred by him in replacing or repairing them.
(7) A person commits an offence if that person—
(a) avails incomplete records or fails to avail the records for inspection as required under this section; or
(b) fails to provide information requested by an authorised officer within the time stipulated by that officer.
[S 37(7) ins by s 4 of Act 12 of 2017 w.e.f. 1 January 2018.]
(8) A person convicted of an offence under sub-section (7) is liable, to a penalty of twenty thousand penalty units.
[S 37(8) ins by s 4 of Act 12 of 2017 w.e.f. 1 January 2018.]
(9) Without prejudice to sub-section (7), a person who fails to avail the requested records under this section is liable to pay a fee of two thousand fee units for each day that the records are not provided.
[S 37(9) ins by s 4 of Act 12 of 2017 w.e.f. 1 January 2018.]
37A. Prohibition of publication or disclosure of information to unauthorised persons
(1) An authorised officer or other person shall not, without the consent in writing given by the Commissioner-General, publish or disclose to an unauthorised person, otherwise than in the course of duties of that officer or person under this Act, information regarding the affairs of a person under this Act.
(2) A person who contravenes sub-section (1) commits an offence and is liable, upon conviction, to a fine not exceeding two hundred thousand penalty units or to imprisonment for a term not exceeding two years, or to both.
[S 37A ins by s 4 of Act 17 of 2015 w.e.f. 1 January 2016.]
(1) For the purpose of exercising any power conferred on him by or under this Act, an authorised officer may, at any reasonable 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 performance 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 provide 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 officer may seal off, lock up or in any other physical manner prevents 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 37 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.
38A. Impounding and removal of goods
(1) Where an officer of the rank of Assistant Commissioner or above who is authorised by the Commissioner-General, has reason to believe that a supplier is selling taxable goods without charging the tax due on such supplies, the officer may impound the goods either at the premises where the goods are being sold or at such place as the officer considers appropriate.
(2) Where an officer of the rank of Assistant Commissioner or above, who is authorised by the commissioner-General, has reason to believe that a supplier has received taxable goods without having been charged the tax due on their supply or at importation, the officer may impound the either at the premises where the goods are or at such place as the officer considers appropriate.
(3) For the purposes of impounding goods under this section by an officer authorised by the Commissioner-General, a police officer may be present while the goods are being impounded.
(4) An officer authorised under sub-sections (1) and (2) may, at the cost of the taxpayer, employ such persons as the officer may think necessary to assist such officer in the execution of such officer’s duty to ensure the security of the goods impounded or to assist with their removal.
(5) An officer who has been authorised under sub-sections (1) and (2) who impounds goods under sub-section (1) or (2) shall issue a receipt for any goods removed.
(6) If a taxable supplier from whom the goods have been impounded under sub-section (1), fails to produce, within 14 days, evidence that such a supplier has complied with provisions of this Act, the Commissioner-General may declare any or all of the goods to be forfeited.
(7) If a taxable supplier from whom the goods have been impounded under sub-section (2) fails to produce, within 14 days, evidence that tax has been paid at the time the goods are supplied or at importation, the Commissioner-General may declare any or all goods to be fortified.
(8) Where goods are forfeited under this section, the Commissioner-General shall, by notice in writing, specify the articles which have been seized and inform the person from whom the goods have been seized that proceedings for their recovery may be instituted within three months from the date notice is given.
(9) If the proceedings are not instituted under the provisions of sub-section (8), any articles forfeited shall, by direction of the Commissioner-General, be sold at a public auction.
(10) Notwithstanding any other provision of this section where goods which are of a perishable nature are impounded, the Commissioner-General may direct that the goods shall be destroyed or sold immediately by public auction.
[S 38A(10) subs by s 6 of Act 6 of 1998.]
(11) Where goods of a perishable nature have been sold and the supplier provides evidence that such supplier has complied with this section, the supplier shall be paid—
(a) the proceeds of the sale without deduction; and
(b) such other restitution as is agreed with the Commissioner-General or the supplier may recover by restitution, in court of competent jurisdiction.
[S 38A ins by s 8 of Act 2 of 1997.]
39. Obstruction of authorised officers
A person who—
(a) fails to comply with any requirements made of him under section 37; 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 imprisonment for a term not exceeding two years, or to both.
40. Impersonation of authorised officers
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 for a term not exceeding 12 months, or to both.
41. Immunity of authorised officers
No action or other proceedings shall lie or be instituted against an authorised 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
(1) A taxable supplier shall keep, in the English language, such records relating to the business carried on by the taxable supplier, and preserve them for a period of six years or such longer period as the Commissioner-General may, by notice in writing, require in any particular case.
[S 42(1) subs by s 4 of Act 3 of 2009.]
(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 12 months, or both.
(3) A person carrying out any mining operations may keep books of account, in United States Dollars, of all transactions relating to, connected with, or incidental to, such operations if the Commissioner-General is satisfied that not less than seventy-five percent of that person’s gross income from mining operations is earned in the form of foreign exchange from outside the Republic.
[S 42(3) ins by s 6 of Act 27 of 2023 w.e.f. 1 January 2024.]
[S 42A rep by s 8 of Act 14 of 2019 w.e.f. 1 January 2020.]
42B. Electronic monitoring of tax compliance
The Commissioner-General may through the Zambia Information and Communications Technology Authority collect and record, in real time, transactional data from a tax payer through applicable technical means for the purpose of ensuring compliance with this Act.
[S 42B ins by s 8 of Act 44 of 2016 w.e.f. 1 January 2017.]
42C. Use of electronic payment machine
(1) A taxable supplier shall provide an electronic payment machine at a point of sale for use as a mode of payment for the customer.
(2) A taxable supplier who contravenes sub-section (1), commits an offence and is liable, on conviction, to a fine not exceeding ninety thousand penalty units.
[S 42C ins by s 6 of Act 23 of 2020.]
43. False returns and statements
Any person who, in relation to a particular tax period makes a return or other declaration, furnishes any document or information or makes any statement, whether in writing or otherwise, that is false in any material particular commits an offence and is liable, on conviction in respect of that tax period, in the case of—
(a) first offence, to a fine not exceeding sixty thousand penalty units;
(b) second offence, to a fine not exceeding one hundred and twenty thousand penalty units;
(c) third offence, to a fine not exceeding two hundred and forty thousand penalty units; and
(d) for any subsequent offence, to a fine not exceeding three hundred thousand penalty units or to imprisonment for a term not exceeding three years, or to both.
[S 43 subs by s 7 of Act 23 of 2020.]
(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 not exceeding three hundred 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.
[S 44(1) am by s 5 of Act 26 of 2022.]
(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 conviction, to a fine not exceeding three hundred thousand penalty units or six times the amount of the tax, whichever is greater, or to imprisonment for a term not exceeding three years, or to both.
[S 44(2) am by s 8 of Act 23 of 2020.]
(3) Any goods which are the subject of an offence under this section shall, if the court convicts and so orders, be forfeited.
45. Fine in lieu of prosecution
(1) 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 sub-section 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 sub-section (1), 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 sub-section (1) is not paid on demand, the Commissioner-General may take steps for, or towards, its recovery in any manner permitted by this Act with respect to the recovery of unpaid tax.
(4) The imposition of a fine under sub-section (1) shall not be treated as a conviction of the alleged offender of a 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.
46. Advertised retail prices to include tax
(1) An advertisement made or published in respect of the supply 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 a fine not exceeding ten 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.
46A Offences by principal officers, partners or shareholders of bodies corporate or bodies unincorporate
Where an offence under this Act is committed by a body corporate or a body unincorporate, with the knowledge, consent or connivance of the director, manager, partner or shareholder of that body corporate or unincorporate body, that director, manager, partner or shareholder commits an offence and is liable, on conviction, to the penalty or term of imprisonment specified for that offence.
[S 46A ins by s 4 of Act 15 of 2018.]
47. Adjustment of contracts on changes in tax
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 there shall be added to or deducted from the consideration for the supply an amount equal to the tax adjustment.
[S 47 am by s 3 of Act 2 of 2004.]
48. Priority of tax debts in bankruptcy
Where an individual has been declared bankrupt, any tax or interest due under this Act shall have priority over other debts proven against the bankrupt.
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;
shall be sufficient evidence of that fact until the contrary is proven.
50. Schemes for obtaining undue tax benefits
(1) 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 obtaining that benefit; or
[S 50(1)(a) am by s 6 of Act 13 of 2014.]
(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;
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 prevention or diminution of the tax benefit sought to be obtained by the scheme.
(2) A determination under sub-section (1) shall be deemed to be an assessment, and the provisions of section 21 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
(d) any other avoidance or postponement of liability for the payment of any tax.
50A. Tax information exchange agreements and mutual assistance in tax matters
(1) The President may enter into an agreement, which may have retrospective effect, with the Government of any other country or territory for the exchange of information on tax matters or for mutual assistance in tax matters with the objective of rendering reciprocal assistance in the administration and collection of taxes under the tax laws of the Republic and such other country or territory.
(2) Any information received by a country or territory under an agreement entered into under sub-section (1) shall be treated as secret in the same manner as information obtained under the domestic laws of that country or territory and shall be disclosed only to persons or authorities involved in the assessment, collection enforcement, prosecution or determination of appeals in relation to, the taxes under this Act.
(3) Sub-section (2) shall not be construed so as to impose on a country or territory the obligation to—
(a) carry out administrative measures at variance with the laws and administrative practices of that country or territory;
(b) supply information which is not obtainable under the laws of that country or territory or under the laws of Zambia; or
(c) supply information which would disclose any trade, business, industrial, commercial or professional secret or trade process, or information, the disclosure of which would be contrary to public policy.
(4) The Minister shall lay a copy of an agreement referred to in sub-section (1) before Cabinet for approval.
(5) The President shall, as soon as practicable after the conclusion and approval of any agreement under this section, notify the public of the terms of the agreement by statutory instrument, and the agreement shall, from the date of commencement of the statutory instrument, have effect as if enacted under this Act as long as the agreement has the effect of law in the of the other country or territory.
[S 50A ins by s 5 of Act 14 of 2012.]
(1) The Minister may make regulations for or with respect to any matter that by this Act is required or permitted 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 sub-section (1), regulations may be made for or with respect to—
(a) the application of this Act in relation to supplies in the course of a business conducted by the administrator of a bankrupt or deceased estate;
(b) de-registration of suppliers;
(c) the transfer of businesses from one supplier to another;
(d) the imposition, in prescribed circumstances, of liability 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;
[S 51(2)(f) am by s 9(a) of Act 2 of 2003*.]
(g) the service of notices or other documents for the purposes of this Act; and
[S 51(2)(g) am by s 9(b) of Act 2 of 2003.]
(h) the supply and use of fiscal cash registers or other equipment in recording daily sales.
[S 51(2)(h) subs by s 6 of Act 17 of 2015 – commencement date not available; am by s 9 of Act 14 of 2019 w.e.f. 1 January 2020.]
(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.
[S 51 am by s 3 of Act 2 of 2005*].
(1) 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) the administration of input tax claims; and
[S 52(1)(b) ins by s 7(a) of Act 13 of 2014.]
(c) any matter which he is authorised, by this Act or any regulations made under this Act, to prescribe or regulate by administrative rule.
[S 52(1)(b) relettered as s 52(1)(c) by s 7(b) of Act 13 of 2014.]
(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 services 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 services are supplied.
(3) Rules under this section may make provision for methods of tax accounting and, in particular, for special methods of tax accounting by such retailers or other suppliers of goods or services 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 in such other circumstances as may be prescribed by the rules;
(c) for the rounding-off of figures in tax returns; and
(d) for the correction of errors.
(5) Rules made under this section may make provision for the settlement by instalments of tax due under this Act.
[S 52(5) ins by s 4(a) of Act 2 of 2004.]
(6) 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.
[S 52(5) renumbered as s 52(6) by s 4(b) of Act 2 of 2004.]
53. Transitional registration provisions
(1) 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 registered.
(2) An application for registration shall be made in such 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 sub-section (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 sub-section.
(4) Sub-sections (4) and (5) of section 28 apply in respect of registration under this section in the same way as they apply in respect of registration under that section.
(5) In this section, "taxable turnover" has the same meaning as in section 28.
(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.
54. Other transitional provisions
(1) 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 under sub-section (1) of section 53 and that were in stock on the tax commencement day.
55. Repeal of Cap 663 of the 1971 edition and Act 25 of 1990
On the tax commencement day, the Sales Tax Act and the Insurance Levies Act shall stand repealed.
[Section 15]
[First Sch rep by SI 68 of 2014.]
[Section 15]
[Second Sch rep by para 4 of SI 69 of 2014.]
[Section 10]
[Third Sch ins by s 5 of Act 3 of 2009.]
SPECIFIED SUPPLIES
1. Bulk and bagged cement (local and imported)
2. Carbonated drinks (local and imported)
3. Non-carbonated drinks (local and imported)
4. Maheu products
5. Clear beer (local and imported, bottled and canned)
[Third Sch para 4 rep and para 5 renumbered as para 4 by s 7 of Act 17 of 2015 w.e.f. 1 January 2016.]
6. Opaque beer (bulk and packed)
[Third Sch para 6 renumbered as para 5 by s 7 of Act 17 of 2015 w.e.f. 1 January 2016.]
7. Cigarettes (local and imported)
[Third Sch para 7 renumbered as para 6 by s 7 of Act 17 of 2015 w.e.f. 1 January 2016.]
8. Air time
[Third Sch para 8 renumbered as para 7 by s 7 of Act 17 of 2015 w.e.f. 1 January 2016.]
9. Mineral water (local and imported)
[Third Sch para 9 renumbered as para 8 by s 7 of Act 17 of 2015 w.e.f. 1 January 2016.]
10. Sugar
[Third Sch para 10 ins by s 6 of Act 15 of 2013; renumbered as para 9 by s 7 of Act 17 of 2015 w.e.f. 1 January 2016.]
{/mprestriction}