Revenue Authority moves to address K2.5 billion VAT refund backlog with smart invoice system

The Zambia Revenue Authority (ZRA) has introduced new strategies to address the growing issue of Value Added Tax (VAT) refund accumulation.

As of February 2025, the authority was reportedly dealing with a VAT refund backlog of between K2 billion and K2.5 billion.

During the Tax Summit held on Thursday at Lusaka’s Mulungushi International Conference Centre, ZRA Commissioner-General, Dingani Banda, outlined steps aimed at improving VAT processes and boosting compliance.

“We are strengthening VAT and other transactional tax types by scaling up the implementation of the Smart Invoice System. This will create a more efficient, transparent, and robust tax collection process,” Banda stated.

He emphasized the key role that technology will play in streamlining the tax administration system.

The introduction of these new measures is expected to curtail the buildup of VAT refunds while enhancing the overall collection and refund process.

Banda highlighted that the authority intends to use technology for improved risk profiling of refund claims, making it more difficult for fraudulent activities to take place.

“We intend to curtail the accumulation of the outstanding VAT refund stock by relying on technology to simultaneously increase gross collections and refunds,” he added.

The Commissioner-General also acknowledged that government support has been pivotal in increasing the monthly VAT refund amounts.

He revealed that the monthly refund figures have significantly increased over the past few years, from K800 million in 2021 to a floating figure between K2 billion and K2.5 billion as of February 2025.

Banda concluded by emphasizing the importance of improving service delivery, narrowing the tax information gap, and ensuring that ZRA hires qualified personnel to carry out these reforms effectively.

“This approach is centered around improving service delivery to our clients, narrowing the tax information gap through extensive taxpayer education, and hiring the right people with the right competencies and values,” he said.

WARNING! All rights reserved. This material, and other digital content on this website, may not be reproduced, published, broadcast, rewritten or redistributed in whole or in part without prior express permission from ZAMBIA MONITOR.