The Value Added Tax (Amendment) Act, 2023

An Act to amend the Value Added Tax Act. [26th December, 2023
ENACTED by the Parliament of Zambia. 1. (1) This Act may be cited as the Value Added Tax
(Amendment) Act, 2023, and shall be read as one with the Value
Added Tax Act, in this Act referred to as the principal Act. (2) This Act shall come into operation on 1st January, 2024. 2. Section 2 of the principal Act is amended by the—
(a) deletion of the definitions of “electronic commerce”,
“electronic fiscal device”, “electronic fiscal printer”,
“electronic signature device”, “fiscalised electronic
register” and “fiscal memory”;
(b) deletion of the definition “electronic service” and the
substitution therefor of the following:
“electronic service” means a service provided or
delivered on or through the internet, electronic
or digital network; and
(c) insertion of the following new definitions in the appropriate
places in alphabetical order:
“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
Value Added Tax (Amendment) [No.

f generating and storing fiscal
information and transmitting production,
invoicing and stock data in real time to the
Value Added Tax (Amendment) [No.

27 of 2023 453
Enactment
Short title
and
commence-
ment
Amendment
of section 2
GOVERNMENT OF ZAMBIA
ACT
No. 27 of 2023
Date of Assent: 22nd December, 2023
Cap. 331
Single copies of this Act may be obtained from the Government Printer,
P.O. Box 30136, 10101 Lusaka, Price K8.00 each.

t: 22nd December, 2023
Cap. 331
Single copies of this Act may be obtained from the Government Printer,
P.O. Box 30136, 10101 Lusaka, Price K8.00 each.

Value Added Tax (Amendment)454 No. 27 of 2023]
Authority, and has the capacity to generate
and record data and other reports and includes
software applications and web based
applications;
“cross-border electronic services” means electronic
services supplied in the Republic by a supplier
who is resident or carries on business outside
the Republic; and
“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. 3. The principal Act is amended by the repeal of section 8
and the substitution therefor of the following:
8. (1) A tax shall be charged, levied, collected and
paid, in a prescribed manner, in respect of a—
(a) taxable supply of goods or services, other than
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.

istration under section
28; and
(b) taxable importation of goods or services into the
Republic, that takes place on or after the tax
commencement day.

(2) The reference in subsection (1) to a supply of
goods or services in the Republic includes a reference to
a supply that, by the operation of sections 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 the tax were a duty of customs under the Customs
and Excise Act, and is payable, accordingly, by the
importer of the goods. Repeal and
replacement
of section 8
Imposition
and scope of
tax
Cap. 322

ms
and Excise Act, and is payable, accordingly, by the
importer of the goods. Repeal and
replacement
of section 8
Imposition
and scope of
tax
Cap. 322

Value Added Tax (Amendment) [No. 27 of 2023 455
(5) A recipient of an imported service shall pay tax on
the importation of that service. (6) The tax referred to under subsection (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-
border electronic services. (7) The input tax corresponding to the tax paid under
subsection (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 subsection (8) in a manner determined by the
Commissioner-General. (10) Despite subsection (8), the Commissioner-General
may, on application by a supplier, exclude a supplier from
appointing a tax agent.

oner-General. (10) Despite subsection (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 subsection (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.

nish 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.

456 No. 27 of 2023] Value Added Tax (Amendment)
(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. 4. The principal Act is amended by the repeal of section 8A. 5. Section 18 of the principal Act is amended by the deletion
of subsection (3) and the substitution therefor of the following:
(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. 6.

d goods, import bills of entry
and documentary evidence of the payment of
tax that the Commissioner-General may, by
administrative rule, determine. 6.

Section 42 of the principal Act is amended by the insertion
of the following new subsection immediately after subsection (2):
(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. 7. The principal 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”. Repeal of
section 8A
Amendment
of section
18
Amendment
of section 42
General
amendment