The Zambia Revenue Authority has increased the number of withholding Value Added Tax (VAT) agents at source to 58.
In a statement today, ZRA Corporate Communications Manager Topsy Sikalinda said sixteen of these agents are Government ministries.
Mr. Sikalinda notes that withholding VAT agents will be performing the functions of collecting Vat on behalf of ZRA by paying the taxes as soon as businesses invoice for services and goods, adding that ZRA will always be introducing initiatives and reforms that will increase the ease with which taxes are paid, thereby helping make businesses more tax compliant.
And Mr. Sikalinda says the agents will be responsible for remitting tax directly to the Authority from source, stating that the move is aimed at assisting business organizations to be more tax compliant.
Mr. Sikalinda also states that business entities will now have their VAT payments being made by the agents for any business transactions conducted directly to ZRA, adding that this will mean that VAT remittance will be done timely and the business entity will only have to submit returns.
Sikalinda says the increase in agents will also take away the liquidity pressure from businesses, especially suppliers who are expected to remit taxes even before their clients have paid.
“We have increased the number of withholding Value Added Tax (VAT) agents at source to 58” Sikalinda said