PAY VAT AS COMPLIANCEYOU EARN (PAYE) REQUIRES REFUNDS ZRA opens Ultra Modern one-stop office in EXTRA Chinsali DETAILSdubbed UmusonkoTO BE OBSERVEDHouse

PAY AS YOU EARN

WITH ODAY its modernization in our discusagenda sion, driven we by discuss ensuring Value that all Added systems Tax in ( VAT) terms and of technology some of the are challenges enhanced. we The notice Zambia from a Revenue tax adminisAu

tration perspective. We hope thority has also ensured

this will help all VAT registhat the physical environ

tered suppliers to be compliment ant and is also non-VAT improved. registered The Authority suppliers last know week how opened the VAT its mechanism Chinsali operates. regional onestop First office and where foremost, taxpayers we need will to understand get all tax-related what VAT is. information, Value Added file returns Tax and may make be defined payments. as a consump

tion-based The new office tax that block is levied that was in the officially supply opened chain by at each His Excellency point where President value is Edgar added Changwa to a good Lungu or service. will have Since all it operative is consumption-based, divisions for the the Zambia primary Revenue legal way Authority. of avoidThese ing VAT are is Customs, by not consuming Direct Taxes any goods and Indirect or services Taxes. that are standard rated. The other is

In order to deliver the by consuming only zero-ratfull benefits of its corporate

ed or exempt supplies. strategy, Our next the Corporate question is; Strawho tegic pays Plan VAT? creates the next milestone By its nature, for the Value vision Added of being Tax is a incurred world-class by the model final of person excellence in the in chain revenue of supply administration who is not registered and trade for facilVAT itation. or in a case of a VAT registered supplier, at a point when the supplier becomes a final consumer. Persons registered for VAT will claim back, through the return, the input VAT incurred in the course of their business, and remit to Zambia Revenue Authority, the Output VAT collected in excess of their input VAT. Therefore, registered suppliers gen

TODAY, we discuss tax refunds. Please note that erally there do not is incur a huge VAT except misconception where The key they aspect are a on is final what how conwe have a sumer tax positioned refund for a particular is especially ourselves good to enhance or service domestic or where they resource incur

when one is retired.

mobilization VAT on a good in or service order that to

Please let’s put this on

achieve is specifically the target excluded of increasfrom

record, a tax refund is

ing input the tax contribution deduction. of domestic not STANDARD a pension. revenue RATED to GDP from SUP18.6 PLIES: percent These in are 2019 supplies to 19.1 that percent attract What is VAT by a 2021. tax at the refund? prescribed

standard It To is achieve reimbursement rate of this 16%. Corporate of Plan, excess ZERO we tax are RATED paid guided in SUPPLIES: a by given four Strategic period.

These are supplies Pillars, that namely: attract Increased VAT Before at 0%. we Tax discuss Compliance the

EXEMPT SUPPLIES: These

PAYE refund, we need to

are supplies that do not at

understand most people

tract any VAT at all.

employed pay their

What are the common income challenges tax with through regard PAYE. to VAT This compliance? is the system your employer uses to take

There are three major facets of tax compliance and

income contributions

these are filing of returns on

before they pay your

time, (including adhering to

wages or salary.

other legal requirements) and

All withholding taxes are intended to be taxed or salary is normally known as pay-asyou-earn (PAYE).

Let us start by understanding that a tax refund is a refund of tax that has been overpaid, Pay as you earn refund mostly mistaken as a pension or guaranteed refund of all PAYE paid during one’s employment is NOT refundable at all.

paying on time (especially

What is refundable is

before the due dates). if you

not the tax paid during

adhere to these simple facets,

employment but the

compliance is then a straight

overpayment on the PAYE

forward process. that The may common have resulted challenges from include payroll but errors are not or limited

unwarranted deductions in

to; businesses not registered for VAT because they are be

relation to income tax.

low the statutory threshold

The Authority notes

or because they are dealing in

with concern that ZRA offices are confronted most people thinking it is guaranteed income or refund after separating with their employers. Capital exempt supplies tend to think

PAYE can be refunded

they should not be charged

only if there was a

VAT because they cannot

genuine mistake in the

claim it.

tax computation by the

Another one is that employer VAT-registered resulting suppliers in the should employee always being ensure they

overtaxed. This is so even

have their Tax Payer Identification Number on the invoice

on all other tax types.

and also ensure they have

A refund can be made

the customers TPIN number

when an employee did not exhaust the tax credit for of tax deducted on tithe from an approved

recorded on the invoice. It is a Enhanced mandatory public staff requirement attitude benefit and to indicate competencies a organization Customer’s in order to Taximpayer prove institutional Identification with a valid capacity, Number optimize ( TPIN), talent “clearly management labelled

certificate. as and such” improve on staff your integrity. invoices

In order for The all Business opening to of Business the new

for one to be and Umusonko Business to Chinsali Government Re

refunded the transactions. gional office directly This requiretalks to ment the four has key been overpayment, pillars in force but since with April emphasis 2020. on their customer employer focus must and Therefore, process have been efficiency. the remitting “Customer

the

TPIN This Pay as comes You field” must after Earn

be labelled successTax as to fully the “Customer Zambia opening TPIN” Revenue the or Mutelo “Client TPIN”. The common error

Authority and the

is some suppliers’ invoices

submission for a refund

indicate narration as “cus

can only be done after

tomer VAT registration number” the end when of it that is supposed particular to be “Customer charge year. TPIN”. The claim

is All only VAT-registered done on income taxpayers issuing invoices from ap

accrued in the final year of

proved enterprise systems,

employment.

approved accounting pack

Remember that this is

ages or pre-printed invoice

the very tax that is used to develop our country books House have in Mongu, up to 21st The SepEast tember Park and 2021 Cosmpolitan to correct the Sernarrations vice Centres for the in Lusaka. Customer On

TPINs. the Copperbelt, The ECL

mall One service other centre key improvewas earliment er opened to the as system well. is the requirement for all Value Added

Now the Authority is tar

Tax ( VAT) registered suppliers

geting opening a new office to have a point of sale (POS) machines block in Choma effective and 1st later Januin ary Kasama. 2021. Customers This transformashould have tion an is not option limited to use to inland their bank offices cards only to purchase but also goods border and offices services such using as Kazungula, the point of Mwami, sale machines. Sakania have al

ready Therefore, been modernized. all VAT-registered More suppliers is being who done may to not enhave sure point that Mopani of customer sale Copper machines experiMines are ence required is enhanced to ensure as is they it the apply core for a enhanced point of sale revenue ma

Source chine collection. from the various service The providers Authority such wishes as their to banks. assure all clients with issues

Lastly, for those registered

on their tax accounts counfor Value Added Tax( VAT),

trywide that we stand ready

Mopani, please take note that the 16% vat to charged help you on resolve your clients the matis not ters. your please money visit but your a nearest Government ZRA office resource, and talk because to any you of are our just great a collection and exciting agent for customer VAT hence experience we appeal teams that you members should always who are be prudent qualified with tax consultants. money collected on be

By BUUMBA CHIMBULU half of Government and remit it on time. The biggest mis

THE new government should take is that most businesses mix up ways the VAT of raising collected the on US$ behalf working of the capital government to scale and end up spending it hence

Copper Mines (MCM) to creating tax liabilities and tax burdens for their businesses.