Global Daily Tax News, Zambia To Abandon VAT Withholding Requirements, (Jul 28, 2025)

The Zambia Revenue Authority has issued a statement confirming the repeal of the withholding value-added tax (WVAT) mechanism.

The announcement follows the introduction of an electronic invoicing mandate from July 1, 2024, linked to the ZRA's Smart Invoice system.

The tax agency said, "The Zambia Revenue Authority would like to inform the general public that, following the successful rollout of the Smart Invoice system, the WVAT mechanism will be officially suspended effective from August 1, 2025."

"The implementation of the Smart Invoice system has significantly enhanced the efficiency, transparency, and effectiveness of VAT compliance and [the] revenue collection processes. As a result, the WVAT mechanism is no longer required."

"Taxpayers are encouraged to fully adopt the Smart Invoice system and ensure continued compliance with VAT obligations. Detailed guidelines will be issued in due course regarding the treatment of taxpayer accounts previously subject to the WVAT mechanism."