VALUE ADDED TAX ACT: SUBSIDIARY LEGISLATION (CHAPTER 331 )

(1) Subject to this Regulation, a registered supplier referred to in sub-section (1) of section 54 of the Act may claim, as input tax, a credit or deduction in respect of the tax on goods referred to that sub-section.

(2) No claim under this regulation shall be allowed unless—

(a) the registered supplier has paid the supplier of the goods for them;

(b) the registered supplier has lodged all sales tax returns and paid to the Commissioner-General all sales tax or other money due in respect of those returns or otherwise arising under the repealed Act;

(c) the tax return by which the claim is made is supported by a Schedule of all goods to which the claim relates, and specifying, in relation to each consignment—

(i) the quantity, description and value of the goods;

(ii) the number and date of the purchase invoice or customs bill of entry;

(iii) the name and address of the supplier of the goods;

(iv) the sales tax paid.

4. Relief from tax in respect of certain imported goods

(1) Subject to this regulation, a taxable supplier may claim, as input tax, a credit or deduction in respect of the tax on goods imported on or after 1st May, 1995.

(2) No claim under this regulation shall be allowed unless—

(a) the taxable supplier has paid the supplier of the goods for them;

(b) the taxable supplier has lodged any sales tax returns due under the repealed Act and paid to the Commissioner-General all sales tax or other money due in respect of those returns or otherwise arising under the repealed Act;

(c) the tax return by which the claim is made is supported by a Schedule of all goods to which the claim relates, and specifying, in relation to each consignment—

(i) the quantity, description and value of the goods;

(ii) the number and date of the purchase invoice and the customs bill of entry;

(iii) the name and address of the supplier of the goods;

(iv) the sales tax paid.

5. General limitations

(1) No claim under these Regulations shall be allowed unless the claim is made by the return relating to the registered supplier’s first prescribed accounting period.

(2) A claim under these Regulations shall be allowed only to the extent and subject to the conditions prescribed by or under section 18 of the Act in relation to input tax generally.

(3) Without limiting the generally of sub-regulation (2)—

(a) where the supplier is not in possession of documentary evidence as prescribed for the purposes of sub-section (3) of that section, the claim shall be disallowed; and

(b) a claim may be partly disallowed by rules of apportionment prescribed under that section and applying to the supplier’s business.

(4) No claim under these Regulations shall be allowed in respect of goods in respect of which a drawback or other relief under the repealed Act has been claimed and allowed.

(5) A claim cannot be made under regulations three and regulation four in respect of the same goods.

VALUE ADDED TAX (FIRST REGISTRATION) ORDER

[Section 53]

[Re-denominate the currency as stipulated under S 4 of Re-denomination Act, 8 of 2012, read with Bank of Zambia Act, 43 of 1996.]

Arrangement of Paragraphs

Paragraph

1. Title

2. Taxable turnover requiring registration

SI 60 of 1995.

[Order by the Minister]

1. Title

This Order may be cited as the Value Added Tax (First Registration) Order.

2. Taxable turnover requiring registration

(1) In this Order—

"relevant quarter" means any period of three consecutive months commencing—

(a) on 1st May, 1994; or

(b) on the first day of any subsequent calendar month;

"relevant year" means any period of 12 months commencing—

(a) on 1st May, 1994; or

(b) on the first day of subsequent calendar month.

(2) For the purposes of sub-section (3) section 53 of the Act, the prescribed turnover shall be calculated by reference to the taxable turnover of the business concerned during any relevant year and, if necessary, during each relevant quarter.

(3) Where, as at 1st May, 1995, the taxable turnover of a business exceeds or is likely to exceed—

(a) thirty million kwacha in any relevant year; or

(b) seven million five hundred thousand kwacha in any relevant quarter;

the business shall be taken to exceed prescribed turnover for the purposes of sub-section (3) of section 53 of the Act, and, subject to the provisions of that section, the person carrying on the business shall be registered by the Commissioner-General accordingly.

(4) In calculating, for the purposes of this Order, that part of the turnover of a business that is attributable to taxable supplies, supplies made in the course of the business before the tax commencement day shall be regarded as taxable if they would have been taxable had they been made after that day.

VALUE ADDED TAX (APPEALS TRIBUNAL) REGULATIONS

[Section 30]

Arrangement of Regulations

Regulation

PART I
PRELIMINARY

1. Title

2. Interpretation

PART II
MEMBERSHIP OF THE TRIBUNAL

3. Qualifications

PART III
ADMINISTRATION

4. Functions of Registrar

PART IV
PROCEEDINGS OF THE TRIBUNAL

5. Quorum

6. Appeal to be in writing

7. Acknowledgement appeal

8. Commissioner’s statement of case

9. Amendment

10. Documents

11. Withdrawal of an appeal

12. Power to extend time limit

13. Hearing

14. Witnesses

PART V
COSTS

15. Costs

PART VI
DECISIONS

16. Pronouncement of decisions

17. Appeals to High Court

[Regulations by the Minister]

SI 169 of 1995.

PART I
PRELIMINARY

1. Title

These Regulations may be cited as the Value Added Tax (Appeals Tribunal) Regulations.

2. Interpretation

In these Regulations, unless the context otherwise requires—

"deputy member" means a deputy member appointed under section (4) of section 30 of the Act;

"member" means a member appointed under sub-section (1) of section 30 of the Act;

"Registrar" means the Registrar referred to in sub-section (5) of section 30 of the Act.

PART II
MEMBERSHIP OF THE TRIBUNAL

3. Qualifications

A member or deputy member shall have the following qualifications—

(a) he must be a citizen of Zambia; and

(b) he must be under the age of 65 years:

Provided that a member shall not be qualified for appointment as Chairman or Deputy Chairman unless the member is a legal practitioner who has practised in Zambia for at least five years.

PART III
ADMINISTRATION

4. Functions of Registrar

(1) The Registrar shall be responsible, under the direction of the Chairman, for the effective and efficient provision of such administrative support as may be necessary to enable the Tribunal to carry out its functions, including the management and organisation of support procedures and support staff, the provision of suitable accommodation and other facilities required for sittings of the Tribunal.

(2) Without limiting the generality of sub-regulation (1), the Registrar shall be responsible for ensuring—

(a) that notices, summons, or other documents are served not less than seven days before the date of hearing;

(b) that the requirements of sub-section (2) of section 31 of the Act are met in relation to an appeal, subject to any decision by the Tribunal under sub-section (3) of that section;

(d) that the decisions of the Tribunal are sent to parties to an appeal, and published in the Gazette within a period of 14 days from the date the decision was made.

(3) The Registrar may, subject to the consent of the Chairman, delegate such of his functions as he thinks fit to any member of the staff of the Tribunal.

PART IV
PROCEEDINGS OF THE TRIBUNAL

5. Quorum

(1) Appeals shall be heard by the three persons being members or deputy members sitting together.

(2) The Chairman, or in his absence the Deputy Chairman shall preside over the sittings of the Tribunal.

(3) The determination of any matter before the Tribunal shall be according to the opinion of the majority of the members of the Tribunal considering or hearing the appeal.

(4) A member shall not sit or act as a member of the Tribunal if he has any interest, direct or indirect, personal or pecuniary, in any matter before the Tribunal.

6. Appeal to be in writing

(1) An appeal to the Tribunal shall be made in writing and shall provide—

(a) details of the decision against which the appeal is made;

(b) the date of the decision;

(d) the grounds for appeal; and

(e) such other information as the Tribunal shall prescribe.

(2) An appeal shall be lodged with the Tribunal within 30 days from the date of the decision or determination by the Commissioner-General.

7. Acknowledgement appeal

(1) Subject to sub-regulation (2) the Registrar shall acknowledge receipt of the appeal, in writing, and copy all documents to the Commissioner-General, within seven days of receipt thereof.

(2) If the appeal is lodged after expiry of the time limit prescribed in regulation 7, or if the appeal does not lie with the Tribunal, the Registrar shall so advise the appellant, copying the correspondence and documents to the Commissioner-General, within seven days of receipt thereof.

8. Commissioner’s statement of case

(1) The Commissioner-General shall, within 30 days of receipt of appeal documents under sub-regulation (1) of regulation 8, lodge with the Tribunal a written statement of the cases setting out the facts and reasons for the disputed decision.

(2) The Registrar shall acknowledge receipt of the statement of the case and copy all documents to the appellant, within seven days of receipt thereof.

9. Amendment

The Tribunal may at any time direct that the statement of the case, or other document relevant to the appeal proceedings be amended in such terms as they think fit.

10. Documents

(1) A party to an appeal shall within 30 days lodge with the Tribunal a list of all documents the party proposes to produce at the hearing.

(2) The Registrar shall acknowledge receipt of the list and shall send a copy to the other party within seven days of receipt thereof.

(3) The Tribunal may require any person who it believes has in that person’s possession documents which may assist the Tribunal in its deliberations, to produce those documents.

11. Withdrawal of an appeal

(1) An appellant may withdraw an appeal or the Commissioner-General may withdraw the decision against which the appellant is appealing any time before or during the hearing, in writing, and the Registrar shall send a copy of the withdrawal and any other documents to the other party within seven days of receipt of such withdrawal.

(2) Withdrawal of an appeal or decision shall not prevent a party from applying for costs.

12. Power to extend time limit

The Tribunal may, on application by a party to an appeal, extend the time limit prescribed for lodging an appeal for a period of 21 days.

13. Hearing

(1) The Registrar shall advise all parties to an appeal, in writing, of the time and place of the hearing, and shall give the parties not less than 14 days' notice.

(2) A hearing shall be in public unless, on application by a party to the appeal, the Tribunal directs that the appeal, or part of it, shall be heard in camera.

(3) An appellant may appear in person at a hearing or be represented by any person that person may appoint, and the Commissioner-General may be represented by any person the Commissioner-General may appoint for the purpose.

(4) If a party to an appeal or that party’s representative falls to appear at the hearing the Tribunal shall proceed in the manner it thinks fit.

14. Witnesses

(1) The Tribunal may call any person to attend a hearing and give evidence if the Tribunal believes that evidence will assist its deliberations.

(2) A witness attending a Tribunal hearing shall be paid allowances and expenses at the rates specified by the Registrar.

(3) Any person who—

(a) being required to attend the proceedings in the manner provided in this Part, falls without reasonable excuse, to attend;

(b) being summoned to produce any document, book or paper, in that person’s possession or under that person’s control, falls to produce the same; and

shall be guilty of an offence and liable to a fine not exceeding one thousand penalty units.

PART V
COSTS

15. Costs

(1) The Tribunal may award such costs as it considers appropriate to a party to an appeal to be paid to the other party within such period as the Tribunal may prescribe.

(2) The Registrar shall be the taxing officer for the purpose of taxing any costs relating to an appeal.

(3) An appeal against taxation of costs ordered by the Registrar shall be heard by the Chairman or Deputy Chairman sitting alone or with another member or deputy member of the Tribunal.

PART VI
DECISIONS

16. Pronouncement of decisions

(1) The Tribunal may deliver its decision at the end of a hearing, but in any case the decision shall be put in writing and sent to all parties to the appeal within 14 days of delivering the decisions.

(2) The Registrar shall keep copies of all decisions endorsed with date of issue to all parties.

(3) The Registrar shall publish the decision of the Tribunal in the Gazette within 14 days of the decision being delivered.

17. Appeals to High Court

Any party aggrieved with any award, declaration or decision of the Tribunal may appeal to the High Court.

VALUE ADDED TAX (SUPPLY) REGULATIONS

[Section 2]

Arrangement of Regulations

Regulation

1. Title

2. Supply of services

3. Supply of goods

4. Supply declared not to be a supply

FIRST SCHEDULE

SECOND SCHEDULE

THIRD SCHEDULE

SI 23 of 1996.

1. Title

These Regulations may be cited as the Value Added Tax (Supply) Regulations*.

2. Supply of services

A supply referred to in the First Schedule shall be a supply of a service for the purposes of the Act.

3. Supply of goods

A supply referred to in the Second Schedule shall be a supply of goods for the purposes of the Act.

4. Supply declared not to be a supply

A supply referred to in the Third Schedule shall not be a supply of goods for the purposes of the Act.

FIRST SCHEDULE

[Regulation 2]

Anything done for a monetary consideration which is not a supply of goods.

SECOND SCHEDULE

[Regulation 3]

The supply or importation of electricity.

THIRD SCHEDULE

[Regulation 4]

The transfer of ownership of imported goods in a Customs Bonded Warehouse in respect of which tax has not become payable under paragraph (b) of sub-section (1) of section 8 of the Act.

VALUE ADDED TAX (BAD DEBT RELIEF) REGULATIONS

[Section 51]

Arrangement of Regulations

Regulation

1. Title

2. Eligibility for relief

3. Claims

4. Records and accounts

5. Subsequent receipt of payment

SI 24 of 1996.

1. Title

These Regulations may be cited as the Value Added Tax (Bad Debt Relief) Regulations.*

2. Eligibility for relief

Where a registered supplier has supplied goods or services for a consideration in money, and has paid the full tax on the supply to the Commissioner general, but has not within 18 months after the supply received payment, in whole or in part, from the person to whom the goods are supplied, the registered supplier may seek a refund of that portion of the tax paid for which he has not received payment:

Provided that—

(a) in the case of a corporate body, an order of liquidation has been made; or

(b) in the vase of a person or partnership, an order in bankruptcy has been made in respect of the person or all the partners.

3. Claims

A refund under regulation 2 shall be claimed on a form approved by the Commissioner-General, where such evidence of eligibility as the Commissioner-General may require has been provided, and the such claim may be taken as input tax upon authorisation by the Commissioner-General.

4. Records and accounts

(1) All records, accounts, and correspondence in respect of the debts shall be retained for the time prescribed in sub-section (1) of section 42 of the Act or for two years after the date of the claim, whichever is the later.

(2) A registered supplier who fails to keep the records for the time required shall be subject to the provisions of sub-section (2) of section 42 of the Act.

5. Subsequent receipt of payment

(1) If a refund is taken and the registered supplier later receives payment, in whole or in part, in respect of the debt he shall remit to the Commissioner-General, on his next tax return, a sum equal to the portion of the payment that represents tax.

(2) A registered supplier who fails to remit the tax on his next return shall be guilty of offence and shall be liable on conviction to a fine not exceeding ten thousand penalty units.

VALUE ADDED TAX (EXEMPTION) ORDER, 1996

[Section 15]

[Re-denominate the currency as stipulated under S 4 of Re-denomination Act, 8 of 2012, read with Bank of Zambia Act, 43 of 1996.]

Arrangement of Paragraphs

Paragraph

1. Title

2. Interpretation

3. Revocation and replacement of First Schedule to Act

4. Revocation of statutory instruments

APPENDIX

SI 110 of 1996,

SI 16 of 1997,

SI 15 of 1998,

SI 15 of 1999,

SI 11 of 2000,

SI 12 of 2001,

SI 12 of 2002,

SI 37 of 2002,

SI 11 of 2003,

SI 14 of 2004,

SI 11 of 2005,

SI 39 of 2005,

SI 43 of 2006,

SI 22 of 2007,

SI 66 of 2007,

SI 12 of 2008,

SI 25 of 2009,

SI 56 of 2009,

SI 79 of 2009.

1. Title

This Order may be cited as the Value Added Tax (Exemption) Order.

2. Interpretation

In this Order, unless context otherwise requires—

"eligible goods" means those goods not previously imported as certified by the Director-General of the Investment Centre and such certification is accepted by the Commissioner-General of the Zambia Revenue Authority.

3. Revocation and replacement of First Schedule to Act

The First Schedule to the Act is hereby revoked and the First Schedule set out in Part I of the Appendix to this Order is substituted therefore.

4. Revocation of statutory instruments

The Statutory Instrument listed in Part II of the Appendix to this Order are hereby revoked.

APPENDIX

[Paragraphs 3 and 4]

PART I

FIRST SCHEDULE

[Section 15]

EXEMPT SUPPLIES AND IMPORTS

1. Water supply services

The supply of mains water and sewerage services, excluding sewerage pump out services.

2. Health supplies

(a) The supply of health and medical services by a registered medical practitioner, optician, dentist, hospital or clinic.

(b) Articles designed for use by the blind or disable.

3. Educational supplies

(a) Educational services provided to primary or secondary students.

(b) Education services provided to posts secondary students.

[First Sch item 3(b) subs by para 2 of SI 25 of 2009.]

[First Sch item 3(c) ins by para 2(a) of SI 15 of 1999.]

4. Books and newspapers

(a) Booklets, maps and charts; and

(b) Newspapers and journals.

[First Sch item 4 subs by para 2(a) of SI 12 of 2008.]

5. Transport services

(a) Transportation of persons by road in a bus or coach licensed under the Roads and Road Traffic Act and having a seating capacity for 14 or more adult persons.

(b) Transportation of persons by air.

[First Sch item 5(b) subs by para 2(b)(i) of SI 15 of 1999.]

(d) Transportation of persons by boat.

[First Sch item 5(d) subs by para 2 of SI 11 of 2000.]

(e) Aircraft licensed to carry passengers.

[First Sch item 5(e) subs by para 2(b)(ii) of SI 15 of 1999.]

6. Conveyance, etc. of real property

(a) The sale, lease or rental of an interest in land other than the sale, lease or rental of a commercial property.

[First Sch item 6(a) subs by para 2(a) of SI 79 of 2009.]

(b) The sale or lease of domestic buildings.

7. Financial and insurance services

(a) the arrangement, provision or transfer of ownership of any contract of insurance or re-insurance;

[First Sch item 7(a) subs by para 2(a)(i) of SI 14 of 2004.]

(b) the provision of the following financial paragraph—

(i) commission on certified vouchers;

(ii) manager's or banker's cheques;

(iii) up country cheques;

(iv) returned cheques

(v) buying and selling of foreign currency;

(vi) commission on line and telegraphic transfer and transactions;

(vii) commission on local and foreign drafts and transfers;

(viii) bills negotiable;

(ix) electronic transfers;

(x) special clearance;

(xi) traveller's cheques;

(xii) letter's of credit;

(xiii) commission on guarantees negotiable;

(xiv) commission on invoices discounted;

(xv) own acceptances;

(xvi) cable charges;

(xvii) interest on lending to banks;

(xviii) interest on lending to customers;

(xix) administrative charges imposed on a customer who exceeds an overdraft limit;

(xx) stop payments;

(xxi) standing orders;

(xxii) savings account;

(xxiii) transaction services, maintenance activities or ledger fees;

(xxiv) account maintenance;

(xxv) closure of accounts;

(xxvi) cheque books;

(xxvii) internet banking;

(xxviii) commission on lost connect cards;

(xxix) commission on status enquiries;

(xxx) excess withdrawal fees;

(xxxi) Bank of Zambia treasury bills handling charges;

(xxxii) commission on postage;

(xxxiii) commitment fees; and

(xxxiv) arrangement fees in the provision of credit;

[First Sch item 7(b) subs by para 2(b) of SI 79 of 2009.]

(i) principal and other finance charges charged on finance leases;

(ii) principal, interest and other finance charges charged on operating leases; and

(iii) principal, interest and other finance charges charged by institutions engaged in hire purchase;

[First Sch item 7(c) subs by para 2 of SI 37 of 2002, para 2 of SI 22 of 2007.]

(d) the operation of any account at a bank or financial institution;

[First Sch item 7(d) subs by para 2(a) of SI 12 of 2001.]

(e) the issue, allotment or transfer of ownership of shares in a company registered or incorporated under the Companies Act;

[First Sch item 7(e) subs by para 2(a) of SI 12 of 2001.]

(f) uncirculated new kwacha notes.

[First Sch item 7(f) ins by para 2(a)(ii) of SI 14 of 2004.]

8. Metal

The supply to a bank of gold in bullion form.

9. Funeral services

The supply or any goods or services in the course of a person’s burial or cremation, including the provision of any licence or certificate.

10. Reliefs at importation

(a) Goods which are imported duty free under regulation 74, 76, 78, 80, 82, 83, 84, 85, 86, or 94 of the Customs and Excise (General) Regulations, 2000, to the same limitations and conditions applicable to such rebate.

[First Sch item 11(a) subs by para 2(c) of SI 12 of 2001.]

(b) Imported goods in respect of which a rebate, refund or remission of duty is available under the Customs and Excise (Public Benefit Organisations) (Rebate, Refund or Remission) Regulations, 2009, subject to the same limitation and to such modification as may be specified therein.

[First Sch item 11(b) subs by para 2(a) of SI 56 of 2009; First Sch item 11 renumbered as item 10 by para 2(b) of SI 56 of 2009.]

11. Domestic kerosene

Domestic kerosene (paraffin).

12. Trade union subscriptions

Trade union subscriptions.

13. Treated and untreated mosquito nets

(a) finished mosquito nets (treated or untreated);

(b) insecticide kits used to treat mosquito nets;

[First Sch item 14 ins by para 2 of SI 12 of 2002; renumbered as item 13 by para 2(b) of SI 56 of 2009.]

14. Road construction agreement entered into with the Government of the Republic of Zambia

[First Sch item 15 ins by para 2 of SI 12 of 2002; renumbered as item 14 by para 2(b) of SI 56 of 2009.]

15. Statutory fees

Statutory fees which are prescribed and regulated by an Act of Parliament or statutory instrument except when paid as a consideration for a supply or when payment is not for the execution of statutory responsibilities.

[First Sch item 16 ins by para 2 of 11 of 2003; subs by para 2(a) of SI 43 of 2006; renumbered as item 15 by para 2(b) of SI 56 of 2009.]

16. Food and agriculture

(a) agricultural products- fresh edible vegetables, fruits, nuts, maize, soya beans, millet, cassava, sorghum, including flour produced from them; other cereals, except when any of the above product is—

(i) canned, frozen or freeze dried;

(ii) supplied by a restaurant, cafeteria, canteen or like establishment; or

(iii) wheat, cotton seed, seed cotton, lint babycorn, sweetcorn, mange-tout peas (snowpeas) sugar snaps, fresh or chilled beans (not dried), carrots, courgettes, patty pans, gem squash, butternut, peppers, leeks, chillies, asparagus, okra, spring onion, peas, tenderstem broccoli, purple sprouting broccoli, mini-savoy cabbage, mixed and sliced vegetables, paprika; or

(iv) Gooseberries, passion fruit, melons;

(b) animal products- meat and offals of cattle, swine, sheep, goats, game farm animals and poultry (including eggs), except—

(i) any of the above products that is supplied by a restaurant, cafeteria, canteen or like establishment;

(ii) cooked or smoked meats, meat processed beyond cutting, grinding or mincing including sausages, pate and the fatty livers of geese or ducks; crocodile products and any other product that the Ministry may, by regulations prescribe;

(c) milk- milk except powdered milk and any milk in cans or tins or when supplied by a restaurant, cafeteria or establishment;

(d) fish- uncooked, frozen or dried fish, except shellfish, ornamental fish or any fish supplied by a restaurant, cafeteria, canteen or like establishment;

(e) agricultural supplies—

(i) bulbs, seeds and plants for producing agricultural products of sub-item (a);

(ii) fertilisers, insecticides, rodenticides, fungicides, herbicides, anti-sprouting products and plant growth regulators and similar products for agricultural use;

(iii) live cattle, swine, sheep, goats, game farm animals and poultry;

(iv) stock feeds for cattle, swine, sheep, goats, game farm animals and poultry;

(v) empty jute, polypropylene bags and plastic granules used in the manufacture of polypropylene bags;

[First Sch item 17(e)(v) subs by para 2 of SI 66 of 2007.]

(vi) polymer granules and paste or liquid polymers used in the manufacture of polypropylene bags;

[First Sch item 17(e)(vi) subs by para 2(c) of SI 79 of 2009.]

(f) Infant cereal and infant formula, when prepared and labelled as such.

[First Sch item 17 ins by para 2(b) of 14 of 2004; subs by para 2(b) of SI 43 of 2006; renumbered as item 16 by para 2(b) of SI 56 of 2009; First Sch item 17(f) subs by para 2(b) of SI 12 of 2008.]

PART II
REVOKED STATUTORY INSTRUMENTS

	Statutory Instrument	Number
1	Value Added Tax Exemptions and Zero-Rating Order, 1995.	88 of 1995
2	Value Added Tax (Exemptions) Order, 1995	91 of 1995
3	Value Added Tax (Exemptions) (No. 2) Order, 1995	103 of 1995
4	Value Added Tax (Exemptions) (No. 3) Order, 1995	108 of 1995 This section of the article is only available for our subscribers. Please click here to subscribe to a subscription plan to view this part of the article. Home \| Terms & Conditions \| Privacy Statement \| Publishing Services \| Contact Us Copyright 2019. Blackhall Publishing. All Rights Reserved. Design and Developed By : Indiafin Technologies Ltd.

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