I have an architectural practice that is exporting services to a Zambian entity. This entity requires them to appoint a Zambian tax agent. The service fee is subject to WHT. From what I have read the VAT Act of Zambia Chapter 331 sub section 8(7) requires
Important:
This answer is based on tax law for the tax year ending 28 February 2020.
Answer:
The guidance you require is outside the scope of the service offered by us. It is our understanding that the non-resident supplier will appoint a tax agent (who will act on his behalf in invoicing the recipient of the service in Zambia) in order to avoid the reverse VAT.
The tax agent will charge the non-resident supplier agency fees that will attract VAT at 16% for the services. The VAT so charged will not be eligible as input tax on the return raised on behalf of the non-resident supplier.
For any queries you contact the ZRA National by email at advice@zra.org.zm.