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VAT Calculator Value Added Tax
Calculate Value Added Tax (VAT) at 16% standard rate for goods and services in Zambia.
Enter Price Details
Results Summary
VAT Amount
K0
Tax amount based on selected rate
Total Amount (Including VAT)
K0
Final price with VAT included
Detailed Breakdown
| Original Price | K0.00 |
| VAT Rate | 16% |
| VAT Amount | K0.00 |
| Total Amount | K0.00 |
Understanding VAT in Zambia (2025)
- VAT (Value Added Tax) is an indirect tax introduced in Zambia on 1st July 1995 to replace sales tax.
- The standard VAT rate in Zambia is 16% and is applicable to selected standard-rated goods and services.
- VAT is administered under the Domestic Taxes Division of Zambia Revenue Authority (ZRA).
- The primary Law relating to VAT is contained in the Value Added Tax Act Chapter 331 of the Laws of Zambia.
- VAT is collected in stages through the supply chain, from manufacturer or importer through distribution and retail to the final consumer.
- The input credit mechanism gives registered businesses back much of the tax they pay on purchases and expenses used for making taxable supplies.
Advantages of VAT
- Uniform System: VAT is invoice-based, making it uniform and uncomplicated
- Self-Policing: Increased tax compliance due to its self-policing nature
- Fair Taxation: Avoids 'tax on tax' characteristic of most indirect taxes
- Business Benefits: Input credit mechanism benefits registered businesses
- Economic Growth: Supports stronger home manufacturing and competitive exports