Zambia introduces VAT on e-services for non-resident providers

27 March 2024

During February 2024, the Zambian tax authority published the VAT (Cross Border Electronic Services) Regulations, 2024. These regulations clarify that from 1 January 2024, non-resident providers of digital services must register, collect, and remit VAT using a simplified registration system when selling to Zambian consumers.

Previously foreign digital service providers did not have to charge VAT on their sales to consumers in the country. However, to remove the unfair advantage that this gave to non-resident companies over resident providers, the Zambian government introduced VAT at 16% on these types of transactions from January 2024. 

Non-resident digital services providers are required to VAT register if they exceed a threshold of ZMW 800,000 (approx. £23,600) per annum or ZMW 200,000 (approx. £5,800) per quarter for sales arising from Zambia. They also need to engage a local Fiscal Representative to VAT register in the country. 
 
This new tax applies to a range of electronic services including advertising, streaming games, music, apps, films, e-books, e-journals, software, and internet services.