CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. Zambia To Relax VAT Rule On Exports

Zambia To Relax VAT Rule On Exports

by Lorys Charalambous, Tax-News.com, Cyprus

28 August 2014


After the leak of a confidential letter dated July 15, 2014, Zambia's Finance Minister Alexander Chikwanda has now confirmed that he has asked President Michael Sata to approve the relaxation of a value added tax (VAT) regulation for exporters.

In the letter, he had informed the President that the regulation requiring exporters to obtain an import certificate from the countries receiving their goods was impractical, and he asked the President for authority to instruct the Zambia Revenue Authority, for which the regulation had been introduced to reduce tax avoidance, to require the document only for export verification purposes.

Although his letter used copper mining companies as an example of the rule's impracticability, pointing out that the equivalent of some USD600m in VAT refunds had already been withheld from them due to their inability to produce import certificates as they often transact through third parties, Chikwanda later confirmed that the regulatory relaxation would apply to all exporters.

It is now expected that the mining sector and the Ministry of Finance will take immediate steps to arrange for the backlog of refunds to be repaid over an agreed time schedule.

TAGS: compliance | Finance | tax | business | value added tax (VAT) | tax compliance | mining | law | ministry of finance | tax authority | Zambia | tax breaks | regulation | VAT refunds

To see today's news, click here.

 















Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »