Smart Link ERP
VAT Calculator
(Value Added Tax Calculator)
Enter Price Details
Summary
VAT Amount
K0
Total Amount (Including VAT)
K0
Calculation Details
| Original Price | K0.00 |
| VAT Rate | 16% |
| VAT Amount | K0.00 |
| Total Amount | K0.00 |
Understanding VAT in Zambia (2024)
- VAT (Value Added Tax) is an indirect tax introduced in Zambia on 1st July 1995 to replace sales tax.
- The standard VAT rate in Zambia is 16% and is applicable to selected standard-rated goods and services.
- VAT is administered under the Domestic Taxes Division of Zambia Revenue Authority (ZRA).
- The primary Law relating to VAT is contained in the Value Added Tax Act Chapter 331 of the Laws of Zambia.
- VAT is collected in stages through the supply chain, from manufacturer or importer through distribution and retail to the final consumer.
- The input credit mechanism gives registered businesses back much of the tax they pay on purchases and expenses used for making taxable supplies.
Advantages of VAT
- Uniform System: VAT is invoice-based, making it uniform and uncomplicated
- Self-Policing: Increased tax compliance due to its self-policing nature
- Fair Taxation: Avoids 'tax on tax' characteristic of most indirect taxes
- Business Benefits: Input credit mechanism benefits registered businesses
- Economic Growth: Supports stronger home manufacturing and competitive exports