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Malawi VAT registration threshold and other changes

The east African state of Malawi has published its 2021/22 budget which includes a number of Value Added Tax changes. They are effective 1 July 2021. These include

  • The VAT registration threshold is to rise to MWK 25million (approx. €26,000 or $31,000) from MWK 10million
  • Nil-rating VAT rate will be extended to certain fuels and books
  • Tightening of the rules for banking services exemption
  • Shortening of the right to deduct input on purchase invoices from twelve months to six months
  • Withdrawal of import VAT on books and certain agricultural machinery

How VAT Advisor gives you instant answers to global VAT headaches

Need instant VAT / GST calculations, legal reference back-up and compliant invoices for complex cross-border transactions?
- Which is the right country to tax the transaction?
- How much VAT should be charged – based on the correct rate - and by whom?
- Does this change for ‘may’ provisions, triangulation, warehousing, withholding VAT and other country variations?
- Should you VAT register to declare and pay the VAT / GST?
- What local tax laws or regional VAT union rules back these conclusions?
- What should your sales or your supplier’s invoice include to avoid lost tax?
- Which VAT return boxes and filings should the transaction be reported in?
How our ready-to-go application, VAT Advisor, solves this:
Live answers based on basic details to the most complex international VAT transactions:
- Where and how much VAT to charge - transparent numbers to share
- Is the supplier or customer responsible, and do they have to VAT register
- Fully compliant VAT invoice to share within Advisor application to agree treatment, including QR Code to meet global requirements
- Details of VAT return box numbers to report the sale and/or purchase
- Domestic and EU VAT Directive legislative references to support with colleagues, customers, suppliers or tax authorities
Company-wide and individual logins, enabling standard transaction template-setting to help ensure consistent and clear application for recurring transactions. You can even forward invoices to customers / suppliers for them to review and approve with their own login.
Since VAT Advisor is part of our single-platform VAT calculation and reporting application, VAT Calc, you can click ‘COMMIT’, and the transaction will be included in your next VAT return without further effort or reconciliation



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