Zambia 9% Sales Tax delay till July 2019

Zambia has postponed the replacement of its existing VAT regime with a Sales Tax until 1 July 2019. The original plan had been 1 April. The standard rate will be 9%; however imports will suffer 16%.

VAT is being withdrawn due to the difficulties of funding refunds. VAT was first introduced in 1995. The Sales Tax Bill of 2019 has now been approved by the government Cabinet, and will now pass to Parliament for approval. The new tax will apply on the supply of goods by manufacturers, producers, distributors, wholesalers and retailers and the importers of goods into the country. The tax will also apply to certain services, including importers of services.