The PF government has moved a step closer to enacting a law that will tax internet services.
The move could effectively see internet services such as Netflix and WhatsApp attract tax by as early as January 2020.
This is according to the VAT Amendment Bill 2019 which was issued on 20th November 2019.
The Act shall come into operational January 2020.
In administering the tax, companies offering internet services in Zambia but domiciled out of the country will be expected to appoint a tax agent to handle all tax matters in the country.
According to the Bill, “Electronic Commerce” means the buying, selling and advertising or marketing of goods and services using the internet, mobile telecommunication networks and other electronic commerce infrastructure.
In the Bill, “Electronic Service” is defined as a service capable of delivery of data across multiple electronic platforms.
“A taxable supplier shall issue a tax invoice for the supply of goods and services using an electronic fiscal device. A taxable supplier who fails to issue a tax invoice commits an offence and is liable on conviction to a penalty not exceeding 300 penalty units or to imprisonment for a term not exceeding three years or to both,” the Bill says.
The Bill says the Supplier who does not have a registered office or Permanent address in Zambia shall appoint a tax agent resident in the Republic to act on behalf of the Supplier in tax matters.
“For the purposes of this Section, “Supply of Services” includes the supply of a service that is made by a supplier who is resident in Zambia or carries on a business outside the Republic to a recipient who is resident in Zambia.”