Zambia’s Ministry of Finance has unveiled its 2024 budget proposal, calling for foreign digital or electronic service providers to register for VAT, charge taxes, and remit them to the Zambia Revenue Authority. This development may have broader implications for global taxation practices, making it crucial to monitor the situation through VAT Calc’s global tracker on VAT and GST for digital services.
While specific service details subject to Zambian VAT remain undisclosed, the scope is expected to encompass various digital services, such as software licensing, e-learning, streaming media, mobile apps, and more. This move reflects a global shift toward taxing digital services to address cross-border challenges. For businesses in this sector, understanding and adhering to these regulations is essential. Stay tuned for updates on this significant development, which marks a notable shift in the taxation of digital services.
Effective date: 2024