Malawi VAT / GST

Value Added Tax (VAT)

Malawi operates a Value Added Tax under the Value Added Tax Act, administered by the MRA. The standard rate was 16.5% for 2025, raised to 17.5% by the Value Added Tax (Amendment) Act 2025 with effect from 31 December 2025.

• Standard VAT rate (2025) — 16.5% percent (Raised to 17.5% from 31 Dec 2025) (Value Added Tax Act (Cap 42:02))
• Standard VAT rate from 31 Dec 2025 — 17.5% percent (Value Added Tax (Amendment) Act 2025)
• Zero-rated supplies — 0% — exports and specified goods/services (e.g. certain basic foodstuffs and medicines) percent ((approx — confirm current zero-rated schedule items)) (Value Added Tax Act (Cap 42:02), Schedules)
• Exempt supplies — Specified supplies are exempt (no VAT, no input credit) — e.g. certain financial, health and education services ((approx — confirm current exempt schedule)) (Value Added Tax Act (Cap 42:02), Schedules)
• Mandatory registration threshold — MK 25,000,000 of taxable supplies per annum MWK/year (Value Added Tax Act (Cap 42:02), Section 11)
• Voluntary registration — Permitted where taxable supplies are below MK 25,000,000 per annum (Value Added Tax Act (Cap 42:02), Section 11)
• Registration deadline once liable — Apply at MRA Domestic Taxes within 30 days of becoming liable (Value Added Tax Act (Cap 42:02))
• VAT return filing frequency — Monthly — return and payment due by the 25th of the month following the tax period ((approx — confirm the exact due day)) (Value Added Tax Act (Cap 42:02))
• Reverse charge on imported services — Recipients of imported services account for VAT under the reverse-charge mechanism ((approx — confirm scope, incl. digital/non-resident supplier rules)) (Value Added Tax Act (Cap 42:02))