TOURISM

1. Zero rate of VAT on accommodation in Livingstone District up to 2009.
2. Zero rate of VAT on Tour Packages throughout Zambia.
3. Zero rate of VAT on other tourist services provided to foreign tourists other than those included in tour packages.
4. Refund of VAT for non-resident tourists and visitors on selected goods.
5. No import VAT on all goods temporarily imported into the Country by foreign tourists
6. Capital allowances at 50% of the cost of plant and machinery.
7. Investment allowance at 10% of the cost of an extension to an hotel (being an industrial building)
8. 5% wear and tear allowance to an extension to an hotel (being an industrial building)
9. 10% initial allowance on an extension to an hotel (being an industrial building) in the year the building is first brought into use.

GENERAL INCENTIVES

1. Import VAT relief for VAT registered businesses on imports of eligible capital goods. (VAT Deferment)
2. Zero rate of VAT on export of taxable products
3. Guarantee of VAT refund within thirty days of lodgment of adequately supported claims within 30 days of submission of the claim.
4. Relief of VAT on transfer of business as a going concern.
5. Equal treatment of services for VAT irrespective of domicile of supplier (Reverse VAT)
6. Cash accounting for VAT for members of the Association of Building and Civil Engineering Contractors.
7. Guaranteed VAT input tax claim for three months prior to VAT registration for businesses that have already commenced trading.
8. Reintroduction of voluntary registration for compliant businesses whose turnover is below K200 per annum subject to conditions stated above.
9. Registered businesses allowed to re-claim 20 percent of in put VAT paid on petrol.
10. Exemption of interest component of finance Leases
11. Reduction of VAT rate for investors in manufacturing, agriculture, commercial banking and insurance operating in tax free zones
12. VAT relief on input tax paid for purchases made by registered suppliers
13. Income from non-traditional exports is taxed at a reduced rate of 15%
14. Duty on computer parts/ components removed.
    Computer components on which duty was abolished is confined to the following:
15. • Motherboard without a CPU & RAM
    • Case with or without power codes
    • CPU heat sink
    • 32 bits CPU made of 2 or more ICS this may include Pentium 3, Pentium 4 or Celeron processors.