FREQUENTLY ASKED

QUESTIONS
 FAQs

1. Introduction 5. What are the cost savings associated

with Smart Invoice?
Following the pronouncement made during
the 2024 National Budget address by the Smart Invoice leads to cost savings through
Minister of Finance and National Planning to reduction of paper used for printing, thereby
implement electronic invoicing, taxpayers eliminating physical storage costs. In
are required to use the Smart Invoice to addition, Smart Invoice reduces the
record all sales transactions. likelihood of data entry errors which in turn
reduces the risk of incurring penalties and
2. What is Electronic Invoicing? interest due to inaccurate declarations.
Electronic Invoicing, also known as e- 6. What is the difference between the
invoicing, refers to the process of generating, Electronic Fiscal Devices (EFDs) and the
sending, receiving and processing invoices Smart Invoice?
electronically.
The implementation of EFDs was mainly
In order to achieve this, the Zambia Revenue based on physical gadgets (devices) while
Authority (ZRA) has implemented Smart Smart Invoice is software based.
Invoice, which transmits invoice data to ZRA Additionally, the EFD implementation only
in real-time. Each invoice transaction has a covered Value Added Tax (VAT) and
special mark called a fiscal signature to Insurance Premium Levy (IPL) while the
authenticate the invoice. Smart Invoice covers more tax types and
3. What is Smart Invoice? duties such as VAT, Turnover Tax (TOT),
Income Tax, Rental Income tax and Local
Smart Invoice is a software-based electronic Excise Duty on Coal and Electricity. Further,
invoicing solution that taxpayers use to it covers levies such as Insurance Premium
manage invoices and stock data transmitted Levy (IPL) and Tourism Levy. The Smart
to ZRA. Invoice also has a component that provides
for stock management.
4. What are the benefits of using Smart
Invoice? 7. Does the Smart Invoice cater for the
needs of all taxpayers?
Smart Invoice offers several benefits,
including cost savings, reduced accounting The Smart Invoice caters for different
errors, faster invoice processing, reduced tax categories of taxpayers using the following
evasion, improved compliance, reliability of invoicing solutions:
invoice information, ability to pre-fill tax
returns, stock management and
environmental sustainability. i. The Mobile App – it is suitable for
taxpayers on Turnover Tax and
Rental Tax only. It is not suitable for
those registered for Value Added Tax.

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This type of solution is a software 8. How can taxpayers access the Smart
application that can be installed on Invoice?
Android based devices. Therefore, the
mobile application can be installed on To access Smart Invoice, taxpayers can visit
a smartphone or Personal Digital the ZRA website www.zra.org.zm, navigate
Assistant (PDA) to create and manage the Smart Invoice section, sign up and apply
transactions. The Mobile App can be for the invoicing solution that best suits their
downloaded from the taxpayers Smart needs.
Invoice profile. 9. Are taxpayers required to pay to install
Taxpayers are not restricted to using the Smart Invoice?
the mobile application as the only
invoicing option. They can choose to ZRA offers Mobile Applications, Desktop
use any of the other available Applications and Online Invoicing packages
invoicing solutions. to taxpayers for free. However, taxpayers
using accounting packages that require
ii. Online invoicing – The online integration with Smart Invoice will be
invoicing platform can be accessed responsible for the associated integration
using a web browser and is suitable costs.
for taxpayers in the service industry
10. Is there a monetary threshold for a
e.g. construction and lawyers.
business to qualify to register for the
Smart Invoice?
iii. Desktop Application – This invoicing
package is suitable for all taxpayers There is no monetary threshold or turnover
except those with accounting required to register for Smart Invoice. To be
packages. It is a software application eligible, a business must be registered for any
that is installed on a desktop computer of the following; Value Added Tax (VAT),
or laptop. It enables users to create, Turnover Tax (TOT), Insurance Premium
customize, and manage transactions Levy (IPL), Tourism Levy (TL), Excise (coal
locally on their own devices. and electricity), Rental Tax or Income Tax.

iv. Approved Invoicing Systems – 11. How will taxpayers using Electronic
‘Approved Invoicing System' refers Fiscal Devices (EFDs) migrate to Smart
to systems that have met the Invoice?
integration requirements of the Smart
All taxpayers using EFDs are mandated to
Invoice and have been approved by
transition to Smart Invoice in compliance
ZRA
with the legal requirement to use Smart
This category applies to taxpayers whose Invoice. After the migration to Smart Invoice,
invoicing systems require integration with taxpayers are required to return the Electronic
Smart Invoice. Fiscal Devices to ZRA for deregistration
from the Tax Invoice Management System.

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12. Are Accounting packages and 16. What are the security considerations
Enterprise Resource Planning Systems for Smart Invoice?
(ERPs) previously approved for invoicing
allowed for issuing invoices after the Security is crucial in e-invoicing to protect
rollout of Smart Invoice? sensitive financial data. Encryption, secure
transmission methods, authentication and
Taxpayers using Accounting packages and data access controls have been put in place to
ERPs previously approved for invoicing ensure the security of taxpayer information.
are required to integrate their systems with
Smart Invoice to meet the legal requirements 17. How can one verify that an invoice is
to use Smart Invoice. genuine?

13. What are the options for integrating Each invoice generated by the Smart Invoice
with Smart Invoice? has a Quick Response (QR) code enabling
Taxpayers to verify the authenticity of the
There are two main options for integrating invoice using a mobile application.
with Smart Invoice:
18. Are taxpayers allowed to issue manual
i. In-House Development tax invoices to customers?
This involves the integration process
being carried out entirely by in-house All taxpayers are required to use Smart
technical staff. Invoice to issue electronic invoices from any
of the available invoicing solutions.
ii. Vendor Development 19. Can Smart Invoice be used without
This involves the integration process internet connectivity?
being undertaken by a software
vendor. Yes, Smart Invoice can be used to generate
invoices offline. Invoices issued offline must
14. Is integration documentation available still be uploaded to the system within 3 days
for Smart Invoice? of issuance to ensure timely and accurate
Yes, all the necessary integration transaction recording. However, issuing
documentation is provided on our ZRA invoices through the Online solution requires
website www.zra.org.zm under the Smart continuous internet connectivity.
Invoice Tab.

20. What is stock management on Smart

Invoice?
15. Can a cloud – based software be
integrated with Smart Invoice?
Stock management on Smart Invoice is a
feature which allows users to efficiently
Yes, cloud – based software can be integrated
manage their inventory and stock movements
with Smart Invoice.

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within the business and across the entire

supply chain. 24. How does accurate stock tracking and
management benefit businesses?
21. What are the benefits of the stock
management feature on Smart Invoice? Accurate stock tracking and management
helps businesses in preventing overstocking
i. Real-time monitoring of stock levels or stockouts and ensures the maintenance of
by taxpayers, thus ensuring up-to- optimal levels of stock to meet demand.
date information on their inventory.
ii. Automated updates on stock 25. What is the advantage of tracking and
movements ensuring improved real-time monitoring of stock levels?
efficiency and accuracy.
iii. Seamless transfer of imports from Real-time monitoring of stock levels allows
ZRA customs system – Asycuda businesses to have instant visibility of their
World, to the taxpayer’s invoicing inventory, making it easier to manage supply
solution. chain operations and respond quickly to
iv. Automated transfer of stock items changes in demand.
between buyer and seller for local
sales transactions if both are using 26. Can a taxpayer with multiple devices
Smart Invoice. linked to a single store add stock on one
device and have the updated stock levels
22. Does Smart Invoice allow me to upload automatically synchronised and reflect on
multiple stock items at once? all other connected devices?

Yes, a Bulk Upload template is available on Where a taxpayer has more than one device,
the website which allows taxpayers with the devices operate independent of each
multiple stock items to upload stock on to the other. Stock can however be transferred from
system at once. However, this option is only one device to another.
available to those using the Desktop
Application and should only be used for
items that have never been captured before.

27. Can Smart Invoice handle export

23. Is it possible to make an adjustment to sales?
stock on Smart Invoice in case of damaged
or expired stock items? Yes, Smart Invoice has a feature that supports
export sales transactions for purposes of zero-
Smart Invoice allows quantity adjustments of rating Value Added Tax (VAT) for VAT
stock under the Stock Management Module. registered suppliers.
However, a reason for the adjustment must be
provided.

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28. Will zero-rating Local Purchase 33. Does Smart Invoice support invoicing
Orders (LPOs) still be used after the in multiple currencies?
implementation of Smart Invoice?
Smart Invoice supports the issuance of
Client’s with LPOs will still be required to invoices in multiple currencies. Invoices can
provide the LPOs before the taxable suppliers be issued in five other major currencies:
of goods or services can issue an invoice United States Dollar, British Pound Sterling,
without VAT. Euro, Chinese Yuan and South African Rand.
29. Is it possible to make corrections to a However, Zambian Kwacha is the default
transaction on Smart Invoice after a sale currency on Smart Invoice for prices in “Item
has been completed? Management”.
In order to use the foreign currency feature,
Yes. Once a sale has been completed, the user will need to select the currency of
adjustments of transactions are possible using choice and define the applicable exchange
credit notes or debit notes. rate.

30. Does Smart Invoice handle issuance of 34. Can taxpayers switch to another
multiple credit notes? invoicing solution later, after initially
registering on one solution?
Smart Invoice allows for the issuance of
multiple credit notes and provides a means of Taxpayers will be required to carefully
managing adjustments to invoices when need decide which Smart Invoice solution meets
arises. their business needs and consistently use it
for invoicing.
31. When entering prices of goods on
Smart Invoice, does the taxpayer enter the However, if they find that another solution
amount inclusive or exclusive of VAT? better suits their business model, they can
switch to a different invoicing solution
All prices for standard-rated goods or
services must be entered on Smart Invoice as
tax inclusive amounts, unless the goods or
services are either exempt or zero-rated. 35. Is it possible for two different
taxpayers, each with their own distinct
32. Is it possible to reflect the mode of TPINs, to install the ZRA Smart Invoice
payment when using Smart Invoice? solutions on the same computer?

Yes, Smart Invoice offers a selection of mode No, the ZRA Desktop, Tablet, Personal
of payment on invoices using the ‘pay mode’ Digital Assistants solutions and mobile App
option for a selection of payment type, these can only have one installation of one TPIN
include Cash, Cheque, Card or Electronic per device.
Fund Transfer.

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36. How will ZRA provide communication ii. Retail;

on system updates and changes as most iii. Restaurant; and
taxpayers do not regularly use the iv. Specialty Store and Grocery.
taxpayer portal to see “Notice Updates”
posted there? However, this option is not available in the
Management Module, where products are
System update notifications will also reflect expected to be defined with distinct prices.
on a taxpayers mobile and desktop
applications and prompt the user to update to 41. Are there penalties for not using Smart
the latest version. Invoice?

37. How can I get the Smart Invoice It is a legal requirement to use the Smart
Mobile App? Invoice. Failure to issue electronic invoices
attracts penalties as specified in the Value
The Mobile App is available for Android Added Tax Act.
devices. It can be downloaded from the
website after applying and registering for the Penalties for failure to comply with the
mobile application. requirement to use Smart Invoice according
to the Value Added Tax Act Section 7A (3)
38. Do I still need to print invoices when are as follows:
using Smart Invoice?
1st Offence: Not exceeding K40,000
Printing of an invoice is optional. Tax
2nd Offence: Not exceeding K80,000
invoices issued to a customer can be printed
or sent electronically using email, etc. 3rd or Subsequent offence: Not exceeding
K120,000 or imprisonment for a term not
39. How do you save and print invoices on
exceeding 3 years, or both.
the Mobile Application Solution?

Invoices generated from the Mobile

Application can be printed using a Bluetooth 42. Where can I get more information
printer or sent to a customer using an SMS about Smart Invoice?
link. For more information and guidance on the
40. Can a user change the defined price of registration and integration process, please
a product entered in Item Management at visit ZRA website at www.zra.org.zm.
the point of making a sale? Navigate to the 'Smart Invoice' section on the
website for detailed instructions and support
Yes, users can modify the defined price of a materials.
product during a sale when using custom You can also call 4111 or write to:
templates such as: [email protected] or
[email protected] or visit any nearest ZRA
i. Hospitality; office.
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