Zambia: Proposed amendments to VAT law on cross-border provision of digital services

Proposed amendments to the current regime

Proposed amendments to the current regime

Proposed amendments to the value-added tax (VAT) law on cross-border provision of digital services were published.

The proposed amendments to the current regime include the following:

  • Scope: The regime applies to cross-border electronic services (i.e., services that are provided or delivered on or through the internet, electronic, or digital network by nonresidents). This is distinguished from “imported services,” which are services provided by nonresidents and are performed or undertaken in Zambia, or the benefit of which is for a recipient in Zambia.
  • Tax agent requirement: The regime requires nonresidents to appoint a tax agent in Zambia. Upon appointing a tax agent, the nonresident must also register the appointed tax agent with the tax authority. Nonetheless, a nonresident may apply for an exemption from the obligation to appoint a tax agent.
  • Self-assessment regime: In specified cases, a recipient of services from a nonresident may be responsible for self-assessing and remitting the VAT due. However, this self-assessment regime will not apply for cross-border electronic services. 

KPMG observation

The current VAT on cross-border digital services regime in Zambia has faced significant challenges, especially due to the lack of a compliance mechanism for taxpayers below the registration threshold. Despite this, the proposed changes to the rules, which are set to take effect on 1 January 2024, still have significant aspects of the implementation process that remain undefined. This includes whether the new proposal will relieve taxpayers of any responsibilities or liabilities that may have been present under the existing system. Consequently, the Zambian Revenue Authority is anticipated to release its "Practice Notes 2024" in February 2024 to provide further clarification.

For more information, contact a KPMG tax professional:

Philippe Stephanny |

Chinedu Nwachukwu |

Michael Phiri |



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