Skip links

Zambia VAT on digital services

2024 VAT on non-resident providers of electronic services

Zambia’s Ministry of Finance has amended the Value Added Tax Act to require foreign providers of digital or electronic services to consumers to VAT register, charge and remit taxes to Zambia Revenue Authority. This came into effect from 1 January 2024.

A new registration portal is due to open 1 April 2024.

Any provider who does not have a registered office or permanent address of business in the Republic shall appoint a person resident in the Republic as a tax agent to act on behalf of that supplier in matters relating to tax. This agent will be jointly and severally liable for any unsettled VAT.

VAT Calc’s global VAT and GST on digital services tracker to see which other countries have introduced indirect taxes on electronic services to consumers.

Determining the place of supply as Zambia

To determine if the supply is made in Zambia, the VAT amendments list the following criteria:

  1. The recipient is resident in Zambia;
  2. Credit card or similar registered address;
  3. Bank account address
  4. IP address
  5. Mobile phone number is Zambia.

What digital services liable to Zambian VAT?

Under the Act, “electronic service” means a service provided or delivered on or through the internet, electronic or digital network, which includes the following:

  • Software licensing
  • Database services
  • Online telecoms services
  • E-learning
  • Streaming and download media
  • Mobile apps
  • E-books and newspapers
  • SaaS and cloud-based software
  • Hosting and other internet services
  • Online advertising
  • Membership to dating memberships
  • Online gaming
  • Search engine services

Marketplace liabilities

It would not just be the responsibility of the provider, but potentially also any intermediary or marketplace selling the service of an underlying supplier – termed a network orchestrator.

Africa & Middle East VAT on digital services

Comments (click for details) Rate Date Threshold Comments
Algeria 9% Jan 2020 Nil
Angola 14% Oct 2019
Bahrain 10% Jan 2019 Nil
Benin 18% Oct 2023 TBC
Botswana 14% 2024 - Pending implementation
Cameroon 19.5% Jan 2020 XAF 50 million
Cape Verde 15% Jan 2022 Nil
Congo, Democratic Republic 16% Jan 2024 -
Egypt 14% Sep 2016 EGP 500,000
Ghana 12.5% Apr 2022 GHS 200,000
Israel 17% TBC Proposals withdrawn
Ivory Coast 18% 2022 -
Jordan 16% JOD 30,000
Kenya 16% Sep 2013 - Registration threshold removed 2023
Kuwait 5% Jan 2024? - TBC
Mauritius 15% 2020
Morocco 20% 2024
Mozambique 16% 2017 Nil
Nigeria 7.5% Jan 2020 $25,000
Oman 5% Apr 2021 OMR 35,000
Rwanda 18% TBC
Saudi Arabia 15% Jan 2018 Nil
Senegal 18% Apr 2024 Nil Fiscal representative required
Sierra Leone 15% Jan 2021 SLE 100,000 No non-resident rules
South Africa 15% Jun 2014 ZAR 1 million
Tanzania 18% Jul 2022 Nil Residents since Jul 2015
Tunisia 19% Jan 2020 Nil Withholding VAT; 3% Royalty Tax
Uganda 18% Jan 2020 UGX 150m
United Arab Emirates 5% Jan 2018 AED 375,000
Zimbabwe 14.5% Jan 2020 Nil
Zambia 16% Jan 2024 Fiscal Representative req'd


Get our latest news right in your mailbox