26.06.2018 – Meeting with the Zambia Revenue Authority (ZRA)

The European Union Zambia Business Club (EUZBC) met with the Zambia Revenue Authority (ZRA) to discuss taxation issues of interest to the members, particularly the implementation of the Electronic Fiscal Devices (EFDs) and the Withholding Value Added Tax (WVAT).

The panel was graced by Commissioner Domestic Taxes, Mr. Moses Shuko and Ms Jyoti Mistry, Director Tax Services at PriceWaterhouseCoopers (PwC).

Mr. Shuko presented the two initiatives which are meant to increase tax compliance by the private sector. ZRA is piloting the introduction of EFDs to some 2,000 out of the 14,000 VAT registered companies. Full implementation will be rolled out in phases. On the WVAT, ZRA is working through appointed tax agents which collect the VAT on their behalf. Mrs. Mistry gave a practical scenario of challenges being faced by businesses regarding the new VAT system, pointing to liquidity challenges in particular.

Other concerns raised by Club members were the lack of flexibility to amend the VAT returns, the time it takes for ZRA to pay refunds, frequency of ZRA audits, and the short period of time for import VAT claims among others. Proposals to better the system were: giving exemptions to relieve companies of liquidity challenges due to delayed VAT refunds and the payment of interests on delayed refunds by ZRA.

ZRA took note of the issues raised and encouraged EUZBC members to engage ZRA and make formal submissions. He underlined ZRA is constantly reviewing the implementation of the EFDs and WVAT in order to ensure an efficient tax system that does not burden the tax payers. That is why penalties are not being enforced currently, but encouraged members to be compliant.