Zambia Revenue Authority ramps up Smart Invoice enforcement across sectors, including betting operators
Revenue authority says all eligible businesses, including VAT-registered gaming operators, must ensure proper Smart Invoice usage.
Zambia.- Zambia Revenue Authority (ZRA) has urged businesses across the country, including Value Added Tax (VAT)-registered betting and gaming operators, to strengthen compliance with the country’s Smart Invoice system as enforcement efforts intensify.
The development is particularly relevant for Zambia’s betting sector, with operators meeting VAT registration requirements also expected to follow Smart Invoice rules alongside other eligible taxpayers.
Under Zambia’s tax framework, businesses whose taxable turnover exceeds ZMW800,000 (€40,000) in any 12 consecutive months or ZMW200,000 (€10,000) in any three consecutive months are required to register for VAT and comply with Smart Invoice obligations, including eligible betting and gaming operators.
In a statement issued on May 11, the ZRA said it was increasing inspections and compliance monitoring under its Smart Invoice enforcement programme, which is aimed at boosting active usage of the electronic invoicing system among registered taxpayers.
The compliance push also extends to VAT refund processes, with ZRA stating that Smart Invoice usage is among the requirements checked before refunds are paid.
The authority stressed that registration alone was no longer enough, warning that Smart Invoice usage must be “consistent, accurate, and timely”. The ZRA added: “Issuing a Smart Invoice is no longer just a regulatory requirement – it’s part of how business is done in Zambia.”
Compliance checks and prosecutions
The regulator added that all eligible entities are expected to issue compliant invoices through the mandated electronic platform, warning that issuing invoices outside the system constitutes a serious violation under the Value Added Tax (VAT) Act.
According to the authority, more than 44,110 businesses have already adopted Smart Invoice as part of Zambia’s wider digital tax compliance framework.
To improve usage levels, the ZRA said it has increased field inspections targeting taxpayers with irregular Smart Invoice activity or gaps in transaction reporting. The authority also noted that every Smart Invoice carries a ZRA-issued QR code that can be scanned to verify invoice authenticity.
The ZRA added that seven taxpayers are currently in the process of being prosecuted for wilful failure to comply with Smart Invoicing requirements, including failure to properly use the system.
Taxpayers failing to issue Smart-compliant invoices could face fines of up to ZMW120,000 (€6,000) and/or imprisonment for up to three years, the authority warned.
