Mining firms receiving VAT refunds-ZCM

ALL mining firms have been receiving their Value Added Tax (VAT) since February this year except those that took legal action against the Zambia Revenue Authority (ZRA), says Zambia Chamber of Mines (ZCM) economist Shula Jalasi-Shula.

Mr Shula said all mining firms had been entitled to receive their refunds since the amendment of the VAT Rule 18(b) in February this year provided they met the requirements under the amended legislation.

“All exporting mines have been receiving VAT except those that took legal action against ZRA on account of its enforcing the law in 2013.

“But both Government and industry have been playing their part to resolve the legal issues so that business carries on as has been,” he said.

He said companies were doing their best to meet the VAT rule 18(b) requirements so that they could be paid.

“Since the amendment of the VAT Rule 18(b) in February this year, all exporting mining firms have been entitled to receive their refunds thereafter provided they meet the requirements under the amended legislation,” he said.

Mr Shula however said mining firms face some challenges with regard to VAT refunds such as extended period of filing in of returns and the actual disbursement of refunds from 30 to 60 days.

He explained that the increased delay in receiving refunds presented cash flow problems for mining companies.

Mr Shula also said the VAT accrued before the legislation was amended early this year had not been paid because the law could not be amended retrospectively.

He also said the documentation required to fulfil the old VAT law could not be acquired on account of the vast global networks between copper producers, intermediate commodity traders and the final consumer.

“The documentation required to fulfil the old VAT law cannot be acquired on account of the vast global networks between copper producers, intermediate commodity traders and the final consumer,

“It is next to impossible to retrieve documentation on which country or consumer was the final destination of the copper,” he said.

Categorized | Business

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