ZRA to prosecute seven unnamed taxpayers for Smart Invoice breach, as over 44,000 businesses adopt usage

The Zambia Revenue Authority (ZRA) says it is in the process of prosecuting seven taxpayers for willful failure to comply with Smart Invoicing requirements, including usage.

ZRA Manager for Corporate Communications Oliver Nzala said the prosecutions were part of the authority’s intensified Smart Invoice enforcement program which was targeting to boost the usage of the Smart Invoicing system for all registered taxpayers.

In a statement issued in Lusaka on Monday, Nzala stressed that failure to issue, or the issuance of non-compliant invoices outside of the mandated electronic system, was treated as a serious tax violation, with penalties under the Value Added Tax (VAT) Act.

He said while over 44,110 businesses had already adopted Smart Invoice, registration alone was no longer enough, usage must be consistent, accurate, and timely.

Nzala said to increase usage of Smart Invoice, ZRA had increased field inspections to ensure all eligible businesses were using Smart Invoice correctly.

“This includes issuing notices to entities with irregular usage or gaps in transaction reporting,” he said.

Nzala warned that taxpayers failing to issue Smart-compliant invoices face penalties, including fines of up to K120,000 and/or imprisonment for up to 3 years.

He stated that every Smart Invoice issued invoice carries a ZRA-issued QR code and this can be scanned to verify the authenticity of the invoice.

“Issuing a Smart Invoice is no longer just a regulatory requirement – it’s part of how business is done in Zambia,” Nzala said.

He said adopting it was one step, using it correctly, consistently, and confidently was what would protect company operations disruptions as a result of non-compliance.

“We encourage businesses to take this seriously. The cost of non-compliance – both financial and reputational – is simply too high,” Nzala said.

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