REGISTRATIONS - TPIN, INCOME TAX, PAYE AND VAT

Introduction
The aim of this leaflet is to explain registration procedures for TPIN, INCOME TAX, PAYE and VAT.

TPIN Registration
TPIN (Taxpayer Identification Number) is a unique 13-digit number given to each taxpayer. The TPIN is a pre-requisite to all procedures of tax registration under Domestic Taxes and Customs Divisions. The TPIN was introduced because Zambia Revenue Authority integrated the operations of the former three Divisions (Customs & Excise, Direct Taxes and Value Added Tax) into two divisions, namely Domestic Taxes and Customs in order to simplify tax administration and to consequently reduce on administration costs.

What is a TPIN?
A Taxpayer Identification Number (TPIN) is a unique thirteen-digit computer generated number allocated to a taxpayer under any of the following types of business:
• Limited company
• Partnership
• Sole trader/proprietor
• Other

When this number is generated, it is presented for collection as a certificate.

Who registers for TPIN?
• Companies or Partnership Businesses
• Individuals
• Non-Governmental Organizations, Clubs, Associations, Missionary bodies & other similar organizations registered with Registrar of Societies
• Entities

How to apply for TPIN Registration:

An application form TPIN 1 which can be obtained from the ZRA Client Services Centre in Lusaka or any local ZRA office, has to be completed and submitted to the same office, accompanied by copies of the following documents:
1. Limited company registered under the companies Act
Required documents:
• Certificate of incorporation
• Certificate of share capital
• Articles of Association

2. Foreign company registered under the Companies Act
Required document:
• Certificate of registration copy

3. Partnership Firm registered under the Business Names Act
Required document:
• Certificate of Registration
• Statement of Particulars-approved by the Registrar
• Completed form TPIN 2

4. Individuals (without registration under any Act)
Required document:
• National Registration Card (NRC) copy

5. Firms registered under the Co-operative Societies Act
Required document:
• Certificate of Registration copy

6. NGO, Club, Association, Ministry body, etc
Required Document:
• Certificate of Registration or Certificate of Exemption from Registrar of societies copy

7. GRZ Ministries / institutions, foreign Government and agency
Required Document:
• Documentary evidence to show legal existence in Zambia

Income Tax Registration
Having registered for TPIN, a taxpayer will be required to register for Income Tax. Taxpayers whose turnover is below K200, 000,000 in a charge year, will register for Turnover Tax.

Those Taxpayers whose turnover is above K200, 000,000 will register for normal Income Tax. This is applicable to individuals and Limited Companies.

Partnerships and Consultancy businesses do not fall under Turnover Tax regardless of their turnover being below K200, 000,000.

Partnerships will register for Income Tax to facilitate for the receipt of Partnership Annual Returns on ITAS at the end of the charge year. Partners will register for Income Tax separately as they will be taxed according to their profit sharing ratios.

It is extremely important for every person who registers for TPIN to register for Income Tax because the Income Tax account number is the one they shall be using to remit income tax.

PAYE Registration
This will apply to individuals, companies, partnerships, etc who have employees. Upon registration for PAYE, they will be given a PAYE account number, which they will use to remit PAYE deducted from their employees' salaries every month.

VAT REGISTRATION
Businesses intending to register for VAT must ensure that they are registered for TPIN before submitting their application Form.

Businesses are required by law to apply for VAT registration if they deal in taxable goods and services and their taxable turnover exceeds registration threshold of K200 million per annum.

The application for VAT is made using VAT 1 form. Copies of the certificate of incorporation or registration must be attached to the application including form 42 (Directors details) from the Registrar of companies. The following requirements must also be attached to the application form:
• Taxpayer Identification number
• Sketch map of location
• Latest Bank Statement
• Business Plan
• Certified copy of certificate of registration or incorporation
• Evidence of records like cashbook, purchases daybook, sales daybook, invoice books, a set of accounts and confirmed orders / signed contracts.

Businesses may also register for VAT on voluntary basis provided they fulfill the conditions set out in Gazette notice No.80 of 2007.

Procedure for VAT registration
All VAT registration applications should be made using the official application form VAT 1 obtained from Customer Services Centre or your nearest ZRA office. VAT registration like any other registration for tax is free.
The application will be processed and a VAT number allocated within 7working days from the date the application form reaches the VAT Registration Unit, and a VAT certificate will be issued within five working days from the date the VAT registration number is allocated.

Effective Date of registration (EDR)
This is the time when a business will be considered as having started charging VAT and it is prescribed by law as:
• For new businesses: - the date of commencement of trading
• For continuing businesses: - If a business submitted an application within one month of becoming liable, the effective date of VAT registration is the date when the VAT 1 is submitted. But if an application is not made within a month of becoming liable, the effective date of registration will be the first day the business' taxable turnover exceeds the registration threshold limits. A business will be given an extended tax period to submit the first return depending on when they reached the threshold

DEREGISTRATION
Should the taxpayer want to deregister, such notice should be brought to the attention of the Commissioner General in writing. The Commissioner General will respond and the tax payer will be asked to submitt the relevant documents.