E-invoicing adoption under loadshedding in Zambia
This report examines firms' experiences with Zambia's new smart invoicing system for VAT, noting that daily loadshedding has created short-term barriers to adoption, reduced formal trading, and pushed some firms toward informality. Over the longer term, high awareness and uptake indicate strong potential for improved compliance, increased tax revenue, and more efficient VAT administration.
-
Quarti-Policy-Brief-October-2025.pdf
PDF document • 1.03 MB
- Since 2024, all Zambian firms must use electronic (“smart”) invoices for Value-Added Tax (VAT) reporting. This rollout coincided with daily loadshedding (electricity shortages), making adoption difficult.
- Based on interviews with 61 firms, this report explores the long-term benefits of smart invoicing, while recognising the short-term adoption challenges.
- The key findings of the survey are:
- Informality shifts - Firms unable to issue smart invoices due to loadshedding lose formal business and revert to informal trade. In the short term, informality among formal firms increases.
- Compliance gains – Firm awareness and adoption of smart invoicing are high thanks to the efforts of the Zambia Revenue Authority. In the long term, this should increase compliance and tax revenue.