Quick overview
| Standard Rate | Reduced Rate | Other Rates |
| 16% | N/A | Zero-rated (0%) and exempt |
The local name for VAT in Zambia is Value-added tax (VAT).
There is basically 1 VAT rate in Zambia:
- Standard VAT rate is 16%
Recent developments
For more information about (recent) rate change developments in Zambia, please click HERE.
Standard rate: 16%
This rate applies for all transactions that take place in Zambia, unless an exception applies (such as a reduced rate, the zero rate or an exemption, or a reason to treat the transaction as outside scope of VAT).
Zero rate (0%)
Examples of goods and services taxable at 0%, with the right to deduct VAT
- Exports of goods
- Books and newspapers
- Foreign aid donations
- Medical supplies and drugs
- Petrol and diesel
- Bread and wheat
Examples of exempt supplies of goods and services, without the right to deduct VAT
- Health and educational services
- Supply of water and sewerage services
- Most public transport services
- Real estate transactions
- Financial services (except fee-based banking services, which are subject to VAT at standard rate)
- Insurance services (except property insurance and casualty insurance, which are subject to VAT at the standard rate)
- Basic foods
- Agricultural supplies
A global VAT/GST rate overview can be found here (note this is a work in progress).
This post was last updated on October 2, 2021.
