The Zambia Revenue Authority – ZRA has pledged to address the Value Added Tax – VAT administrative challenges as per new proposed changes in the 2020 budget by the Minister of Finance, stating that the decision by Government to maintain the VAT will be implemented by the Authority with renewed vigor and initiatives based on smart technologies.
ZRA Commissioner General Kingsley Chanda told the Zambian Business Times – ZBT in response to a query on October 17, 2019 that the Authority will ensure the effective implementation of VAT and will immediately address the compliance and administrative challenges especially falsified refund claims, double claims and transfer pricing through over invoicing.
“As the body charged with the responsibility of administering tax policy on behalf of Government, the Authority fully supports all government policies including the maintenance of VAT. To this end, the Authority will be upgrading the Tax Online system for domestic taxes and interface it with customs system to ensure that all claims of refund for input VAT paid to Customs Services during importation of goods are validated through systems based controls against data in the customs system,” he said
He said the Authority will also undertake measures to ensure the mandatory use of Electronic Fiscal Devices – EFD for VAT and other tax types and facilitate accreditation of additional EFD distributors and Virtual EFD software suppliers and vendors.
Chanda added that the mandatory capture and electronically transmission to ZRA of the Taxpayer Identification Number – TPIN and the Names of both the buyer and seller of goods and services in all Business to Business and Business to Government transactions has already been implemented across businesses that include chain stores and other VAT registered suppliers.
He further said two new units have already been set up to enhance data analytics and bulk data matching with third party institutions and to enhance enforcement and compliance activities, Implementation of stiffer penalties for evasion including prosecution and ensure timely audits of VAT claims, including outsourcing services of external forensic auditors whenever necessary.
“The Authority believes that the comprehensive tax review of the tax system which the Government intends to undertake as pronounced in the 2020 Budget will promote investment and broaden the tax base through increased economic activities,” he added. The Authority has since pledged to continue taking actions to ensure that Zambia’s tax regime is transparent, professionally managed and sustainable.
