Zambia Moves Towards Smart Invoicing: Expert Highlights Benefits and Challenges
Zambia is taking strides to modernize its tax systems with the introduction of a smart invoicing system, aiming to broaden the tax base and enhance resource mobilization.
Economic expert Kelvin Chisanga has applauded the initiative, highlighting its potential to streamline VAT refund processes while urging stakeholders to address technological gaps that may hinder its full implementation.
According to Mr. Chisanga, the Zambia Revenue Authority (ZRA), in collaboration with government and private stakeholders, is working on refining tax structures to foster local resource mobilization. A key feature of this reform is the use of prescribed templates for VAT returns under the new Smart Invoice-accredited accounting system.
“Taxpayers will now be required to submit returns using approved software to claim VAT refunds and generate savings,” Chisanga said. Starting January 1, 2025, only invoices issued through this system will be accepted for VAT claims, as outlined in Finance Minister Dr. Situmbeko Musokotwane’s 2025 budget speech.
The system is expected to boost efficiency in VAT refunds, a move Chisanga believes will build business confidence. However, he cautioned that addressing technological gaps is crucial to ensure the smooth adoption of the system.
“With this advancement, I hope VAT refunds will be processed speedily to bolster tactical business confidence among taxpayers and strategic stakeholders,” Chisanga concluded.
