Zambia’s E-Invoicing Timeline, Process & Benefits

Designed and implemented by the Zambia Revenue Authority (ZRA), e-invoicing in Zambia started on July 1, 2024. All taxpayers are required to adopt Smart Invoice, although a grace period has extended enforcement until October 1, 2024.

This blog breaks down everything you need to know to stay compliant and prepared for the e-invoicing mandate.

What is E Invoicing in Zambia?

E-invoicing in Zambia is the process of creating, sending, and storing tax invoices electronically. It replaces traditional paper-based invoicing and helps businesses report transactions directly to the Zambia Revenue Authority in real time.

To manage this, the ZRA has introduced the Smart Invoice system for e invoicing implementation. It is a digital platform that records and validates transactions as they happen. This system ensures transparency, minimizes tax evasion, and speeds up processes like VAT refunds.

Depending on your business type and size, ZRA offers different Smart Invoice tools to help you get started:

1. Smart Invoice Desktop & Tablet Application

• For Windows-based devices (Windows 10 or higher)
• Lets businesses create and manage invoices locally
• Ideal for small, medium, or large taxpayers without accounting software

2. Smart Invoice Mobile App

• Designed for Android phones (Android 8 or above)
• Best for small businesses or those under the Turnover Tax system (i.e., not VAT-registered)

3. Online Smart Invoice

• Works through a web browser—no download needed.
• Perfect for service providers issuing only a few invoices.

4. Certified Invoicing Systems

• For businesses using ERP or accounting software.
• Must be integrated with the Smart Invoice platform via a Virtual Sales Data Controller (VSDC).
• Requires ZRA certification and technical setup.

To get started with integration, taxpayers can download the official documentation and contact SIPROJECT@zra.org.zm for support.

E-Invoicing Implementation Timeline

Here’s a quick look at the key dates and updates for e invoicing implementation:

Launch of Smart Invoice: 19 March 2024

This marked the official e invoicing start date for Zambia’s new e-invoicing system. Since then, ZRA has urged businesses to begin registering and using Smart Invoice for their daily transactions.

Original Deadline: 1 July 2024

Initially, all taxpayers were expected to fully adopt Smart Invoice by 1 July 2024. But due to feedback from businesses and integration challenges, ZRA decided to extend the grace period.

Grace Period: Until 30 September 2024

VAT-registered businesses were given time until 30 September 2024 to complete the transition without facing penalties. 

Penalties Begin: 1 October 2024

Starting 1 October 2024, ZRA began enforcing compliance. That means penalties may apply to taxpayers who haven’t registered or aren’t using the Smart Invoice system correctly.

E-Invoicing Process in Zambia

The Smart Invoice system is a full digital overhaul of how businesses report sales to ZRA. It replaces older systems like Electronic Fiscal Devices (EFDs) and adds more features, flexibility, and tax coverage.

How to Get Started: Register for Smart Invoice

Here’s a step-by-step on how businesses can register:

1. Go to the Smart Invoice Taxpayer Portal and sign up.
2. After creating your password, log in to the portal.
3. Click “Apply” and choose your Smart Invoice Type:
   • Desktop Client
   • Online
   • Mobile
   • VSDC (for ERP users)
4. Download and fill the Commitment Form from the portal.
5. Attach the signed form and click Send to apply.
6. Once approved, click on your profile icon next to the Apply button.
7. Under Device Management, download the Smart Invoice installer.
8. Download User Manuals for easy setup.

Once you're registered, you're ready to start issuing e-invoices.

How E-Invoices Work in Zambia

Previously, Zambia used EFDs, physical machines that recorded sales and sent data to ZRA. These are now being phased out. Businesses using EFDs must return those devices to ZRA for deregistration. Here’s how it works now with Smart Invoice:

1. Create an e invoice using the Smart Invoice system (desktop, online, mobile, or integrated ERP).
2. Your device sends the invoice details to ZRA in real time.
3. The system validates your invoice by assigning:
   • A Mark ID (unique code)
   • A QR Code
4. Only validated invoices are legally recognized.

Who Needs to Comply with E-Invoicing in Zambia?

The e-invoicing mandate from ZRA is broad and inclusive. Here’s what you need to know:

Mandatory for All Resident Taxpayers

Starting 1 July 2024, all resident taxpayers in Zambia are required to issue electronic invoices using the Smart Invoice system. This includes businesses of all sizes, whether you’re a small shop owner or a large enterprise.

Exemptions (Case-by-Case)

As per e invoice guidelines, the Commissioner General may allow certain categories of taxpayers to continue using other systems, but only under specific circumstances. So, unless you get a formal exemption, you’re expected to register for Smart Invoice and start using it to issue and validate invoices electronically.

Benefits of E-Invoicing in Zambia

Here’s how move to e-invoicing in Zambia helps:

Real-Time Monitoring

ZRA will now get instant access to business transactions through Smart Invoice. This means they can monitor sales, identify inconsistencies, and track VAT claims in real time.

No More Fake Invoices

Fake invoices used for VAT refunds have been a long-standing issue. With each invoice carrying a Mark ID and QR code, Smart Invoice ensures only genuine invoices are used for VAT deductions.

Broader Tax Coverage

Unlike the old EFDs, which only covered VAT and a few levies, Smart Invoice includes:

• VAT
• Sales Tax
• Rental Income
• Insurance Premium Levy (IPL)
• Tourist Tax
• Local Electricity Consumption Tax

It even comes with inventory tracking to help businesses stay organized.

How Can ClearTax Help a Business With E-Invoicing in Zambia?

Here’s how ClearTax supports your business with Zambia’s Smart Invoice system:

• Whether you’re using SAP, Tally, or custom software, we ensure your system connects with ZRA’s Smart Invoice platform through the Virtual Sales Data Controller (VSDC).
• ClearTax automates invoice creation, adds the required Mark ID and QR code, and sends the invoice directly to ZRA for validation in real-time.
• Track, manage, and store all your e-invoices anytime, from anywhere. Our dashboard gives you full visibility over all transactions and compliance status regarding Zambia e-invoicing.
• Tax laws evolve. ClearTax helps you stay compliant with the latest ZRA guidelines, automatically updating as rules change, so you never miss a deadline or face penalties.

Conclusion

E-invoicing in Zambia helps report transactions directly to the Zambia Revenue Authority in real time. Depending on business size and type, companies can use Smart Invoice through desktop, mobile, online, or integrated software. From October 1, 2024, all resident businesses must use this system. It improves tax compliance, prevents fake VAT claims, and covers a wider range of taxes than the older EFD machines.