The Zambia Revenue Authority (ZRA) has initiated prosecution proceedings against seven taxpayers for willful failure to comply with Smart Invoice requirements.
According to the tax Authority, the prosecutions form part of an intensified enforcement programme aimed at increasing compliance and boosting the usage of the Smart Invoicing system among registered taxpayers.
In a statement issued to the media in Lusaka today by ZRA Corporate Affairs Manager, Oliver Nzala said failure to issue invoices through the mandated electronic system, or issuing non-compliant invoices outside the Smart Invoice platform, constitutes a serious violation under the Value Added Tax Act.
Mr Nzala disclosed that although more than 44,110 businesses have registered for the Smart Invoice system, registration alone was insufficient without consistent and accurate usage.
“Registration alone is no longer enough , usage must be consistent, accurate, and timely. The Authority warned that taxpayers who fail to issue Smart Invoice-compliant receipts risk facing penalties, including fines of up to K120,000 or imprisonment for up to three years,” he said.
Mr Nzala explained that every Smart Invoice issued under the system carries a QR code that can be scanned to verify the authenticity of the invoice.
He stressed that Smart Invoicing had now become an integral part of doing business in Zambia and urged businesses to fully comply with the system to avoid operational disruptions arising from non-compliance.
“I encourage the business community to take this seriously. The cost of non-compliance — both financial and reputational is simply too high,” the statement reads.
The Corporate Affairs Manager revealed that the Authority has since increased field inspections targeting eligible businesses to ensure proper implementation of the Smart Invoice system.
Mr Nzala said inspections include issuing compliance notices to businesses with irregular usage patterns or gaps in transaction reporting.
