Facebook to charge Zambia advertisers VAT
Nyasha Nigel Machiri
Partner - HLB Zambia | Tax Advisor | International Tax | Transfer Pricing | Freelance Writer
Meta, the parent company of Facebook has announced that they will be charging value-added tax (VAT) to advertisers in Zambia on the sale of ads with effect from 1 April 2024. This follows Zambia’s implementation of VAT on the supply of electronic services.
The tax is currently set locally at 16%, and it will apply to both businesses and individuals.
Facebook emphasised that operators that are registered for VAT must enter their tax ID (TPIN) in the ad accounts settings of Ad Manager, and this will show up on ads receipts. This will help the registered supplier to claim VAT charged by suppliers.
Zambia initially introduced VAT on the supply of electronic services by non-resident with or without a place of business in Zambia, on 1st of January 2020.
Electronic service means a service capable of delivering data across multiple electronic commerce platforms. Electronic commerce means buying, selling, advertising or marketing of goods and services using the internet, mobile telecommunication networks and other electronic infrastructure. Electronic services include:
Non-residents without a place of business in Zambia are required to appoint a tax representative who is resident in Zambia for the purpose of accounting for the tax on electronic commerce.