How much is VAT in Zambia?

The VAT rate is 16% and is applicable to supplies of standard-rated goods and services. The export of goods from Zambia is zero-rated. This article talks about How much is VAT in Zambia.

You can calculate VAT in Zambia by multiplying the product or service price by the appropriate VAT rate.

The export of goods from Zambia is zero-rated. However, the provision of services that are classified as standard-rated supplies from a Zambian place of business is subject to VAT at 16%, irrespective of whether the customer is a Zambian resident or a non-Zambian resident.

How much is VAT in Zambia?

Standard-rated goods imported to Zambia are subject to import VAT at 16%.

The supply of standard-rated services to customers in Zambia by a non-Zambian supplier that has not been subject to VAT in the country from which the services are provided will be subject to VAT in Zambia. The non-Zambian supplier can appoint a local tax agent to account for output VAT on their services; this procedure enables the Zambian customer to reclaim the corresponding input VAT.

Otherwise, the Zambian VAT-registered customer would be required to account for the output VAT referred to as ‘reverse-charge VAT’ on the services procured from the non-resident supplier. In this instance, there is no mechanism for the Zambian customer to recover reverse-charge VAT.

Customs duties

Goods imported into Zambia are generally subject to customs duties. In 2017, a surtax of 5% was introduced on selected goods that are imported into, manufactured in, or produced in the country.

Excise taxes

Certain goods and services, such as alcoholic drinks, tobacco, and mobile communications airtime, are subject to excise duty at the following rates: