Zambia’s 2024 budget introduces amendments to the VAT law, paving the way for the implementation of an electronic invoicing system. The aim is to leverage technology to monitor transactions in real-time, with the goal of reducing the amount of fictitious invoices in circulation and reducing the VAT gap.
Zambia already has a Tax Invoice Management System (TIMS) in place, which mandates the use of Electronic Fiscal Devices (EFD) for all business transactions. With the upcoming e-invoicing system, the use of EFDs will be removed. Taxpayers will only be able to claim input VAT or deductions based on invoices issued according to the new system.
The effective date for these changes is scheduled for January 2024, which may present some challenges. It is expected that the tax authority will provide detailed guidelines to assist taxpayers in complying with these new requirements.
We will continue to provide updates as the implementation date approaches and new details are revealed.
