OBSERVE 2021 TAX CHANGES, ADVISES ZRA
ALLbusinesses should take note of some tax changes that were announced in the 2021 national budget to ensure that they do not default on their obligations.
It is also vital that all businesses take note of other changes in the 2021 national budget which takes effect in a few days from now, says Zambia Revenue Authority (ZRA) Corporate Communications Manager, Topsy Sikalinda.
“One of the key improvements to the system is the requirement for all Value Added Tax (VAT) registered suppliers to have point of sale (POS) machines effective 1st January 2021,” Mr Sikalinda said.
Mr Sikalinda said customers should have an option to use their bank cards to purchase goods and services using the point of sale machines.
Therefore, he said, all VAT registered suppliers who may not have point of sale machines would be required to ensure they applied for a point of sale machine from the various service providers such as their banks.
“Tax compliance is a complex
way of saying you are filing all required returns and paying taxes on time. This includes adhering to all other requirements in the tax system such as the use of POS machines.
“The biggest challenge with most individuals and companies is that they are always resolving past tax liabilities while creating new liabilities. This is like moving 10 steps forward
and 12 steps backwards. It not help but just leads taxpayers into tax compliance compromise,” Mr Sikalinda said.
He said ZRA had been flexible and giving every business an opportunity to make good of their tax account by allowing them to enter into time to pay agreements with a condition that terms are honored.
Mr Sikalinda said a lot of
businesses had benefitted from the facility and improved their liquidity and performance because all tax payments were spaced and paid in installments.
“This facility has many advantages to the tax payer as it allows the tax payer some financial planning scheme with the support of the tax Authority,” he said.