Calculate VAT in Zambia: types, examples and how it works
Available IVA rates in Zambia
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Standard IVA of 16%
What is IVA in Zambia and how does it work?
Value Added Tax or IVA is a tax applied to the sale of goods or services. IVA is collected throughout the production and distribution chain, ensuring that in the end, it is the consumers who pay it.
To determine the IVA, you need to consider the selling price of the product or service offered, and also a specific percentage to obtain the final cost of the IVA. The percentage to be charged varies depending on the product or service in question, as well as the social demands of the countries involved.
Standard rates are usually imposed on the purchase of general goods and services, while reduced rates usually correspond to essential products or food. For example, a smartphone might have an IVA of 16%, which would be the standard IVA;
Basic concepts to understand IVA calculation
Calculating IVA is a simple and fast operation that can be done in a few seconds. But not everyone knows how to add and subtract percentages for this. The mistakes made when calculating IVA are always the same, although they are easy to avoid with the proper formulas.
It is essential to clarify certain points to avoid avoidable mistakes when calculating the total amount of a bill. These are the facts to know to calculate IVA accurately and simply.
How VAT is calculated in other countries (92 countries)
