ZRA TO IMPLEMENT VAT WITH VIGOUR
ZAMBIA Revenue Authority (ZRA) will implement the new Value Added Tax (VAT) proposed in the 2020 National Budget with renewed vigour, Commissioner General Kingsley Chanda has said. Mr Chanda said the ZRA would implement the VAT with renewed vigour and initiatives based on smart technologies. The Commissioner-General said this in a statement issued to the Daily Nation yesterday. “To ensure the effective implementation of VAT, the ZRA would immediately undertake to 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,” he said. Mr Chanda explained that ZRA would upgrade the tax online system for domestic taxes and interface it with customs system. This, he said, would ensure that all claims of refund for import VAT paid to customs services during importation of goods were validated through systems based controls against data in the customs system. He also said measures were being put in place to ensure the mandatory use of Electronic Fiscal Devices (EFDs) for VAT and other tax types. Mr Chanda said his organisation would facilitate accreditation of additional EFD distributors and virtual EFD software suppliers and vendors. “We will make it mandatory to capture and electronically transmit to ZRA the Taxpayer dentification Number T N and the names of both the buyer and seller of goods and services in all business to business and business to Government transactions. “This has already been implemented across businesses that include chain stores and other VAT registered suppliers,” he said. Mr Chanda said two new units had already been set up to enhance data analytics and bulk data matching with third party institutions to enhance enforcement and compliance activities He said implementation of stiffer penalties for evasion including prosecution would done and ensure timely audits of VAT claims. “We believe the new tax measures proposed under VAT will therefore help to curb the revenue leakages. “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,” Mr Chanda said