ZRA Commissioner General Kingsley Chanda has stated that the decision by the government to maintain the Value Added Tax will be implemented by ZRA with renewed vigor and initiatives based on smart technologies.
“To ensure the effective implementation of VAT, the ZRA will immediately undertake to address the compliance and administrative challenges especially falsified refund claims, double claims and transfer pricing through over invoicing. As the body charged with the responsibility of administering tax policy on behalf of Government, the Authority fully supports all government policies including the maintenance of VAT. To this end, the Authority is undertaking the flowing steps: 1. Upgrading the TaxOnline system for domestic taxes and interface it with customs system to ensure that all claims of refund for import VAT paid to Customs Services during importation of goods are validated through systems based controls against data in the customs system,” Chanda stated. “2. Measures are being put in place to ensure the mandatory use of Electronic Fiscal Devices (EFDs) for VAT and other tax types and facilitate accreditation of additional EFD distributors and Virtual EFD software suppliers and vendors; 3. Making it mandatory to capture and electronically transmit to ZRA the Taxpayer Identification Number (TPIN) and the Names of both the buyer and seller of goods and services in all Business to Business and Business to Government transactions; this has already been implemented across businesses that include chain stores and other VAT registered suppliers. 4. Two new units have already been set up to enhance data analytics and bulk data matching with third party institutions and to enhance enforcement and compliance activities.”
Other measures he says the ZRA will put in place include ” 5. Implementation of stiffer penalties for evasion including prosecution. 6. Ensure timely audits of VAT claims, including outsourcing services of external forensic auditors whenever necessary. We believe the new tax measures proposed under VAT will therefore help to curb the revenue leakages”.
“The Authority believes that the comprehensive tax review of the tax system which the Government intends to undertake as pronounced in the 2020 Budget will promote investment and broaden the tax base through increased economic activities,” stated Chanda.
“The Authority shall continue to take actions to ensure that our tax regime is transparent, professionally managed and sustainable.”