Use legally acceptable tax receipts or face penalties - ZRA

THE Zambia Revenue Authority (ZRA) has indicated that it is keen to help taxpayers with challenges in the issuance of receipts which all businesses are mandated to provide to customers.

Taxpayers are encouraged to ensure they use the legally acceptable receipts to clients after every transaction to avoid abrogating the law and incurring penalties that come with non-compliance, says ZRA Corporate Communications Officer, Mildred Chama.

Ms Chama stated that all VAT registered businesses were currently expected to issue electronically generated invoices using the approved fiscal devices.

“To this end, ZRA embarked on mechanisms to ensure that taxpayers, as expected by law, started using the legally approved Electronic Fiscal Devices (EFD’s).

“Ideally, a tax invoice must be issued at the point of transaction. Further, a customer is entitled to ask for a duplicate invoice, which must be marked prominently duplicate,” she said in her write-up on Why Issue or Demand a Receipt.

According to the law, Ms Chama said, tax invoices received, and copies of those issued, must be retained for a minimum of six years and produced to the ZRA on demand.

She emphasised that the law clearly stipulated that sellers should ensure they issue legal receipts to their customers for every purchase made.

“ZRA is keen to help taxpayers with challenges in the issuance of receipts. Taxpayers are encouraged to ensure the use the legally acceptable receipts to clients after every transaction to avoid abrogating the law and incurring penalties that come with non-compliance.

“For consumer goods and services, we urge them to develop a culture of always requesting for a receipt for every purchase made,” Ms Chama said.

She explained that receipts/invoices offered a number of benefits such as helping to keep a good record of the financial transaction during auditing of the company.

She said they also helped eliminate the opportunity by businesses to hide information of taxes that are to be paid to ZRA.

“Since the receipt provides evidence of a transaction, customers can use them to return goods that have defects. They help the buyer to make a claim for input tax deduction if need be.

“By keeping track of all transactions, a business is able to track all the revenue coming into the business through sales and can help gauge profitability and cash flow,” Ms Chama said.