By Francis Chipalo
The Zambia Revenue Authority (ZRA) has started prosecuting seven taxpayers for willfully failing to use the Smart Invoice system, in a move to crack down on non-compliance.
The authority said the cases are part of an intensified enforcement programme targeting registered businesses that fail to issue Smart Invoices as required by law.
Under the Value Added Tax Act, failure to issue a Smart Invoice or issuing invoices outside the mandated electronic system is a serious offence. Convicted offenders face fines of up to K120,000 or imprisonment for up to three years.
“Over 44,110 businesses have registered for Smart Invoice, but registration alone is not enough. Usage must be consistent, accurate, and timely,” authority’s Corporate communications manager Oliver Nzala said.
Nzala said ZRA has increased field inspections and is issuing notices to entities with irregular usage or gaps in transaction reporting.
He said every Smart Invoice carries a ZRA-issued QR code for instant verification.
“Issuing a Smart Invoice is now part of doing business in Zambia. Using it correctly protects your operations from disruptions due to non-compliance,” Nzala said.
“The cost of non-compliance financial and reputational is too high. We encourage businesses to take this seriously,” he added.b