ZRA suspends withholding VAT mechanism following smart invoice rollout

The Zambia Revenue Authority (ZRA) has announced the suspension of the Withholding Value Added Tax (WVAT) mechanism, effective August 1, 2025, citing improved efficiency brought about by the Smart Invoice system.

In a public notice issued on Saturday, the Authority said the decision followed the successful implementation of the Smart Invoice system, which had enhanced VAT compliance and revenue collection.

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

Read more: ZRA grants September 30 grace period for VAT registered taxpayers to integrate into smart invoice system

ZRA had since urged taxpayers to fully adopt the Smart Invoice system and maintain compliance with VAT obligations.

The Authority added that detailed guidelines would soon be released on how accounts previously subject to the WVAT mechanism will be managed.

The Smart Invoice system—an electronic invoicing platform—was officially launched by Finance and National Planning Minister, Situmbeko Musokotwane on March 19, 2024, and became mandatory on July 1, 2024.

The system is part of a broader initiative aimed at strengthening revenue integrity and improving service delivery in Zambia’s tax administration.

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