Value Added Tax (Amendment), 2020

An Act to amend the Value Added Tax Act. [18th December, 2020
ENACTED by the Parliament of Zambia. 1. (1) This Act may be cited as the Value Added Tax
(Amendment) Act, 2020, 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 2021. 2. Section 11 of the principal Act is amended by the deletion
of subsection (1) and the substitution therefor of the following:
(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. 3. Section 19 of the principal Act is amended by the—
(a) deletion of subsection (1A); and
(b) renumbering of subsection (1B) as subsection (1A). 4.

. 3. Section 19 of the principal Act is amended by the—
(a) deletion of subsection (1A); and
(b) renumbering of subsection (1B) as subsection (1A). 4.

Section 21 of the principal Act is amended by the deletion
of subsection (6) and substitution therefor of the following:
(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. Short title
and
commence-
ment
Cap. 331
Amendment
of section 11
Amendment
of section 19
Amendment
of section 21
[No. 23 of 2020 347
Value Added Tax
(Amendment)
GOVERNMENT OF ZAMBIA
ACT
No. 23 of 2020
Date of Assent: 18th December, 2020
Enactment
Single copies of this Act may be obtained from the Government Printer,
P.O. Box 30136, 10101 Lusaka, Price K4.00 each.

: 18th December, 2020
Enactment
Single copies of this Act may be obtained from the Government Printer,
P.O. Box 30136, 10101 Lusaka, Price K4.00 each.

5. Section 34 of the principal Act is amended by the deletion
of subsection (2). 6. The principal Act is amended by the insertion of the following
new section immediately after section 42B:
42C. (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 subsection (1),
commits an offence and is liable, on conviction, to a fine not
exceeding ninety thousand penalty units. 7. The principal Act is amended by the repeal of section 43
and the substitution therefor of the following:
43.

ceeding ninety thousand penalty units. 7. The principal Act is amended by the repeal of section 43
and the substitution therefor of the following:
43.

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. 8. Section 44(2) of the principal Act is amended by deletion of
the word “thirty” and substitution therefor of the words “three
hundred”. 348 No. 23 of 2020] Value Added Tax
(Amendment)
Amendment
of section 34
Insertion of
section 42C
Use of
electronic
payment
machine
Repeal and
replacement
of section
43
False returns
and
statements
Amendment
of section 44