Printing - The Laws of the Republic of Zambia

1 The Laws of ZambiaCopyright Ministry of Legal Affairs, Government of the Republic of ZambiaREPUBLIC OF ZAMBIATHE VALUE ADDED TAX ACTCHAPTER 331 OF THE LAWS OF ZAMBIACHAPTER 331 THE VALUE ADDED TAX ACTTHE VALUE ADDED TAX ACTARRANGEMENT OF SECTIONSPART IPRELIMINARYS ection 1. Short title 2. Interpretation 3. Application of this Act to partnerships 4. Application of this Act to unincorporated organisations 5. Application of this Act to groups of companies 6. Application of this Act to Government agenciesPART IIVALUE ADDED TAXThe Laws of ZambiaCopyright Ministry of Legal Affairs, Government of the Republic of Zambia 7.

2 Taxable supplies 8. Imposition and scope of tax 9. Rate of tax10. Taxable value of supplies and importations11. Place of supply of goods12. Place of supply of services13. Time of supply of goods or services14. Time of importation15. Exemptions and zero-ratingsPART IIIACCOUNTING FOR AND PAYMENT OF TAX16. Tax returns17. Late lodgment of returns18. Tax deductions and credits19. Payment of tax or credit20. Interest on overdue tax21. Assessment of taxPART IVDEFAULT IN PAYMENT OF TAXS ection22.

3 Recovery of tax and interest23. Attachment of debts, Security and production of evidence25. Requirement for early payment26. DistressPART VREGISTRATION OF SUPPLIERS27. Register of suppliers28. Registration29. Failure to register, Laws of ZambiaCopyright Ministry of Legal Affairs, Government of the Republic of ZambiaPART VIAPPEALS30. Value Added Tax Appeals Tribunal31. Appeals to Tribunal32. Determination of appealsPART VIIADMINISTRATION AND ENFORCEMENT33. Functions of Authority34. Delegation by Commissioner-General35.

4 Authorised officers36. Taking of samples37. Furnishing of information and production of documents38. Entry and search39. Obstruction of authorised officers40. Impersonation of authorised officers41. Immunity of authorised officersPART VIIIMISCELLANEOUSThe Laws of ZambiaCopyright Ministry of Legal Affairs, Government of the Republic of ZambiaSection42. Records and accounts43. False returns and statements44. Evasion of taxation45. Fine in lieu of prosecution46. Advertised retail prices to include tax47. Adjustment of contracts on changes in tax48.

5 Priority of tax debts in bankruptcy49. Evidence by certificate50. Schemes for obtaining undue tax benefits51. Regulations52. Administrative rules53. Transitional registration provisions54. Other transitional provisions55. Repeal of Cap. 663 of the 1971 edition and Act No. 25 of 1990 SCHEDULESCHAPTER 331 VALUE ADDED TAX4 of 1995 Statutory Instruments88 of 199591 of 1995103 of 1995108 of 1995122 of 1995146 of 1995150 of 199522 of 199627 of 199679 of 1996110 of 199611 of 199716 of 1997An Act to impose a tax on the supply of goods and services in Zambia and theimportation of goods into Zambia ; to repeal the Sales Tax Act and theInsurance Levies Act; and to provide for matters connected with or incidentalto the foregoing.

6 [1st May, 1995]PART IPRELIMINARYThe Laws of ZambiaCopyright Ministry of Legal Affairs, Government of the Republic of Zambia1. This Act may be cited as the Value Added Tax Act.*(1)* The Value Added Tax Act came into operation on 1st May 1995. For the purposes of this Act, 1stJuly, 1995 is appointed as the tax commencement day. ( No. 58 of 1995)Short title 2. (1) In this Act, unless the context otherwise requires-"authorised officer" means a person appointed under section thirty-five to be anauthorised officer for the purposes of this Act;"Authority" means the Zambia Revenue Authority established by the ZambiaRevenue Authority Act;"Commissioner-General" means the Commissioner-General appointed under theZambia Revenue Authority Act;"exempt importation" means an importation of goods described in the FirstSchedule;"exempt supply" means a supply of goods or services described in the FirstSchedule.

7 "goods" means any article or substance of value, any immovable property and anyinterest in land, but does not include money, securities or any chose inaction;"Government agency" means-(a) any Ministry or Department of the Government;(b) any statutory corporation or board; or(c) any local authority."importation of goods" includes any dealing with goods that renders the goodsliable to any duty or other impost under the Customs and Excise Act;"input tax" has the meaning ascribed to it in section eighteen;"prescribed accounting period", in relation to a taxable supplier, means theaccounting period determined under section sixteen that is applicable tothat supplier.

8 "prescribed interest rate" means the rate that exceeds, by two per centum perannum, the commercial bank lending rate for the time being determined bythe Bank of Zambia , except where the Minister, by statutory order,determines a lower rate;"registered" means registered under Part V;"supplier" means-(a) a person, corporation, partnership or organisation that suppliesgoods or services; or(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 bethe supply of a service for the purposes of this Act;InterpretationCap.

9 321 Cap 321 Cap. 322 The Laws of ZambiaCopyright Ministry of Legal Affairs, Government of the Republic of Zambia but does not include-(i) the provision of any service without consideration, except in so faras the Minister, by regulation, otherwise determines; or(ii) any other activity which the Minister by regulation declares not to bea 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 ofa business carried on by him or are, in the course of such abusiness, manufactured or produced for supply, an appropriation ortransfer of possession of the goods-(i) for his own use or consumption, or for use or consumption byhim and others; or(ii) for use or consumption by his employees or partners, orotherwise in connection with a business carried on by him.

10 Or(d) any other dealing with the goods (other than the supply, in relationthereto, of a service) which the Minister, by regulation, declares tobe a supply of the goods for the purposes of this Act; but does not include an importation of the goods, or any dealing with thegoods which the Minister, by regulation, declares not to be a supply of thegoods for the purposes of this Act;"tax" means value added tax imposed by section eight or additional tax payableunder section seventeen, and "taxation" shall be construed accordingly;"tax commencement day" means such day, being the first day of a month, as theMinister may, by statutory order, appoint;"tax invoice" means an invoice, showing such particulars as theCommissioner-General may, by administrative rule, prescribe, relating to ataxable supply of goods or services;"tax return" means a return referred to in section sixteen.