What every invoice must show
- The words "tax invoice" in a prominent place, and your name, address and TPIN. In a business-to-business or business-to-government sale you must also show the customer's TPIN, not just their name.
- A Smart Invoice fiscal signature and a QR code. ZRA requires an electronic invoice to carry the serial fiscal invoice number, the fiscal invoice code or fiscal signature, the terminal ID of the POS, and the date and time of printout, on top of the ordinary particulars. A reprint must be marked "Copy Tax Invoice".
- Prices entered tax-inclusive. On Smart Invoice all prices for standard-rated goods and services must be entered as tax-inclusive amounts; only exempt and zero-rated items are entered otherwise. The invoice still has to show the price excluding VAT, the VAT charged, and the total including VAT as separate figures.
- A zero-rating Local Purchase Order behind any supply you invoice without VAT to a privileged person — the LPO must be in your hands before you issue the invoice, not afterwards.
Numbering, keeping and correcting invoices
A tax invoice is issued once for each supply; the customer is entitled to a reprint rather than a second original. Zero-rated or exempt items must be recorded separately on the invoice. Records, including tax invoices and credit notes, must be kept in English for at least six years.
Once a sale has been invoiced, you correct it with a credit note or a debit note, never by editing or deleting the invoice. A credit note is needed when a supply is cancelled or varied, the price is changed or goods are returned. It must say "credit note", carry a serial number, quote the number of the invoice it adjusts, give the reason and the amount. ZRA does not accept credit notes missing those features. A credit note must be issued within 180 days of the invoice date. A prompt-payment discount that was stated on the original invoice needs no credit note.
If you cease business you must ask in writing to have your invoicing system deactivated within 30 days, and keep the records for the statutory period. Tampering with the system or entering false data is punishable by up to 100,000, 200,000 or 300,000 penalty units, or three years in prison.
Electronic invoicing in Zambia
Mandatory and in force. ZRA's Smart Invoice replaced the old Electronic Fiscal Devices: EFDs were hardware and covered only VAT and the Insurance Premium Levy, while Smart Invoice is software and covers VAT, turnover tax, income tax, rental income tax, local excise on coal and electricity, the Insurance Premium Levy and the Tourism Levy. VAT-registered taxpayers had to be on it from 1 July 2024, with a grace period to 30 September 2024 and penalties from 1 October 2024. But the obligation is not limited to VAT: the Income Tax Act requires every person or partnership carrying on a business to use an electronic invoicing system to record sales, and ZRA says there is no monetary threshold — you are eligible, and required, if you are registered for VAT, turnover tax, income tax, rental tax, the Insurance Premium Levy, the Tourism Levy or excise on coal and electricity. Four free solutions: a Desktop and Tablet application for most taxpayers, an Android Mobile App for turnover tax and rental tax only (not for VAT), an Online portal suited to service businesses issuing few invoices, and Certified Invoicing Systems for anyone with an accounting package or ERP, which integrate through the Virtual Sales Data Controller and are the only option you pay for. Sign up at the Smart Invoice taxpayer portal, click Apply, choose the solution, attach the signed Commitment Form, and download the installer from Device management once approved. Invoices can be generated offline but must be uploaded within 3 days. The consequences of not using it are concrete: since 1 January 2025 the VAT Act allows an input tax claim only against an invoice issued from the electronic invoicing system — the serially numbered invoice book and the authorised computer package were both deleted from the law — so a purchase invoice that is not a Smart Invoice buys you nothing. Failure to use the system carries a fine not exceeding K40,000 for a first offence, K80,000 for a second, and K120,000 or three years' imprisonment or both for a third. ZRA is inspecting and prosecuting: a Lusaka trader was convicted in August 2026 and fined K125,000.