VATupdate

VAT rates in Zambia

Quick overview

Standard Rate Reduced Rate Other Rates
16% N/A Zero-rated (0%) and exempt

The local name for VAT in Zambia is Value-added tax (VAT).

There is basically 1 VAT rate in Zambia:

  • Standard VAT rate is 16%

Recent developments

For more information about (recent) rate change developments in Zambia, please click HERE.

Standard rate: 16%

This rate applies for all transactions that take place in Zambia, unless an exception applies (such as a reduced rate, the zero rate or an exemption, or a reason to treat the transaction as outside scope of VAT).

Zero rate (0%)

Examples of goods and services taxable at 0%, with the right to deduct VAT

  • Exports of goods
  • Books and newspapers
  • Foreign aid donations
  • Medical supplies and drugs
  • Petrol and diesel
  • Bread and wheat

Examples of exempt supplies of goods and services, without the right to deduct VAT

  • Health and educational services
  • Supply of water and sewerage services
  • Most public transport services
  • Real estate transactions
  • Financial services (except fee-based banking services, which are subject to VAT at standard rate)
  • Insurance services (except property insurance and casualty insurance, which are subject to VAT at the standard rate)
  • Basic foods
  • Agricultural supplies

 

A global VAT/GST rate overview can be found here (note this is a work in progress).

This post was last updated on October 2, 2021.

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