• Smart Invoicing promises to reduce VAT refund delays.
• This will lessen the burden of auditing on the Zambia Revenue Authority.
• Extension of the deadline will provide SMEs with adequate time to implement systems that facilitate seamless integration of E-invoicing.

Zambia Association of Manufacturers (ZAM) has called on Zambia Revenue Authority (ZRA) to consider extending the deadline for implementation of the Electronic Invoicing System by 6 to 12 months.

Speaking at the Consultative Forum for the 2025 budget & 2025 – 2027 medium term budget plan Organized by Ministry of Finance, Association Chief Executive Officer, Muntanga Lindunda further urged ZRA to ensure strict enforcement in utilization of the platform by all economic actors.

Ms. Lindunda noted that Smart Invoicing promises to reduce Value Added Tax (VAT) refund delays through the electronic invoicing by producers.

“This in turn lessen the burden of auditing on the Zambia Revenue Authority,” Ms. Lindunda noted.

And Ms. Lindunda noted that manufacturing Corporate Income Tax of 30%, 16% VAT, and delayed remittance of VAT refunds, multiple licensing and excessive Council levies among others, are some of the bottlenecks affecting the growth of the sector.

She observed that Excessive Council Levies such as bird and milk levies negatively impact value chains, increase the cost of doing business and hinder planning and development.

Speaking at the same event, Zambia Chamber of Commerce and Industry (ZACCI) Board Trustee, Paul Chisunka said extension of the deadline will provide SMEs with adequate time to implement systems that facilitate seamless integration of E-invoicing into their respective businesses.

“We commend ZRA for this proactive initiative. However, for our SME segment, we propose extending the deadline for onboarding E-invoicing,” Mr. Chisunka stated.

On 19th March 2024, Finance and National Planning Minister, Dr. Situmbeko Musokotwane launched the electronic invoicing system which enables Zambia Revenue Authority to have real time business transactions and increase revenue collection.

The system prevents the use of fake invoices in VAT refund claims and ensures that only qualifying entities claim deductions.

From 1^st July, 2024, it will be mandatory to use the electronic invoicing system, a software-based solution implemented by ZRA.