By BUUMBA CHIMBULU
ISSUANCE of receipts help businesses keep good records of the financial transactions during auditing of the company, thereby assisting companies keep track of all the revenue coming into the business.
This is according to the Zambia Revenue Authority (ZRA) Corporate Communications Officer, Mildred Chama, who stressed that issuance of receipts represented proof of a financial transaction.
Ms Chama said in her write-up on “Why Issue Receipts” by keeping track of all transactions, a business was also able to track all the revenue coming into the business through sales.
She stated that the issuance of tax invoices for business entities was essential to evidence the supply of goods or services and the amount of money the buyer is expected to pay.
“Records kept through information on receipts helps ZRA collect the correct taxes from business and individuals.
“The law clearly stipulates that sellers should ensure they issue legal receipts to their customers for every purchase made. Further business must note that issuance of more than one tax invoice or receipt for the same sales transaction is not allowed,” she said.
From a buyer’s point of view, Ms Chama said receipt for goods purchased or services availed was essential to claim the input tax credit.
She explained that a customer was entitled to ask for a receipt upon payment for goods or services.
Ideally, she emphasised, a receipt must be issued to the buyer at the point of a sales transaction.
“Since it is the customer’s proof of purchase, customers can use them to return goods which can be for a number of reasons. Receipts are equally important for buyers as well, especially if they want to reclaim the Value Added Tax (VAT) on a particular product purchase.
“ZRA is keen to help taxpayers with challenges in the issuance of receipts. Taxpayers are encouraged to ensure they use the legally acceptable receipts to clients after every transaction to avoid abrogating the law and incurring penalties that come with non-compliance,” Ms Chama said.