ARE you a foreign supplier of services to zambian companies?

We Help You Issue Invoices Without Zambian Tax Residency

We serve as Reverse VAT Tax Agents for non-resident suppliers of services to VAT registered Zambian businesses.

Reverse VAT

Under Zambian VAT rules, Reverse VAT is levied on services provided by non-resident suppliers. Reverse VAT is the transfer of liability to account for and pay VAT from the supplier of services to the recipient of the service. Given that there is no payment to the recipient of the service by the supplier, Reverse VAT is a cost on the part of the Zambian recipient of foreign services.

The Role of a Reverse VAT Tax Agent

The cost of Reverse VAT to the local recipient of foreign services is avoided if the foreign supplier of services appoints a local Agent who will act on their behalf in invoicing and accounting for VAT to the Zambia Revenue Authority. The VAT charged to the recipient of foreign services by the Tax Agent is eligible as input tax on the VAT return of the recipient of the foreign service.

What is the Purpose of Reverse VAT

Although Reverse VAT results in a zero effect in the tax payers’ books, it achieves the following objectives:

  1. The addition of VAT to foreign suppliers’ invoices insures competitiveness with local VAT registered suppliers;
  2. It improves tax compliance; and
  3. The data submitted to Zambia Revenue Authority is used to track trade with other jurisdictions.

Examples of imported services that attract Reverse VAT

  1. Leasing/Rental of equipment
  2. Management and consultancy services
  3. Technical advisory services
  4. Marketing information and sales promotion
  5. Inland transportation services
  6. Building, construction and contracting

Contact us for further discussion if you need services of a Reverse VAT Tax Agent.

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