ZRA amends VAT Rule 18 for Zero rated sales

The Zambia Revenue Authority (ZRA) has announced the amendment of Rule 18 of the Value Added Tax Rules of 1997.

And ZRA says it has as at 31st July, 2014 withheld over K3.5 billion on account of taxpayers who have declared Zero rated exports but have not furnished all the required documents to the Authority.

Rule 18 ensures that Value Added Tax (VAT) neutrality in international trade is achieved by not subjecting exporters to VAT while at the same time providing for the refund of input taxes while importers are taxed on the same basis and at the same rates as domestic suppliers.

ZRA Commissioner General Berlin Msiska in a statement made available to QFM News today says the amendment is with effect from 8th September, 2014, and that Gazette Notice of 2014 has since been issued.

Mr Msiska explains that the amendment of Rule 18 entails that unless the Commissioner General shall otherwise allow, a taxable supplier claiming that a supply is zero-rated under the Second Schedule to the Act on the grounds that the supply is an exportation of goods, shall produce to an authorised officer copies of export documents for the goods, bearing a certificate of shipment provided by the Zambia Revenue Authority; tax invoices for the goods exported, proof of receipt of payment for the goods, and such other documentary evidence as an authorised officer may reasonably require.

Mr Msiska says the amendment is in accordance with powers contained in sections twelve, thirteen, sixteen, eighteen, twenty-seven, twenty-eight, fifty-two and fifty-three of the Value Added Tax Act.

And Mr Msiska says the Zambia Revenue Authority has withheld over K3.5 billion as at 31st July 2014 on account of taxpayers who have declared Zero rated sales (exports) but have not furnished all the required documents to the Authority.

He adds that ZRA has also as at 31st July, 2014 paid out over K762 million in respect of Taxpayers inclusive of the mining sector who have since provided the required documents.

( Tuesday 02nd September 2014 )

QFM NEWS