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:
- The recipient is resident in Zambia;
- Credit card or similar registered address;
- Bank account address
- IP address
- 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| Israel | 17% | TBC | – | Proposals withdrawn |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 |
