About 7,500 of Malawi’s 9,000 VAT-registered operators have already adopted the new electronic invoicing system, as the tax authority pushes ahead despite retailer resistance.
By Edwin Mauluka
Retailers across Malawi’s cities and districts have shut their shops in protest against a new VAT collection system — the Electronic Invoicing System (EIS), which replaces the older Electronic Fiscal Devices (EFDs).
But the Malawi Revenue Authority (MRA) is standing firm, urging traders to comply.
“We have rolled out the system and there is no turning back,” MRA Commissioner General Felix Tambulasi told reporters on Tuesday.
“Our plea is simple: reopen your shops. We want transparency and proper tracking of the VAT consumers are already paying.”
Of the country’s 9,000 VAT-registered operators, about 7,500 are already using the system.
Tambulasi described the EIS as a more reliable and progressive tool that will ensure taxes paid by Malawians reach government coffers.
“There’s a misconception that VAT is paid by businesses. That is not correct,” he said. “Businesses simply collect and remit VAT on behalf of the government.”
He also warned against reports that some traders are intimidating others who want to continue operating.
“Such actions are counterproductive. Closing shops hurts businesses and undermines economic growth.”
EFDs were introduced in 2014 to replace handwritten receipts, marking a key step in automating VAT collection. The MRA says the new EIS now replaces those devices, which it considers outdated, costly and inefficient.
“This is not a new tax,” Tambulasi stressed. “It is a modern, more efficient way of issuing invoices and managing tax records.”
The web-based system eliminates the need for expensive hardware and offers real-time transaction monitoring and improved stock management, he said.
VAT in Malawi is set at 17.5% and is paid by consumers at the point of purchase, with businesses acting only as collection agents.
Resistance to the system is not new. The earlier rollout of EFDs faced similar pushback.
Tambulasi said the MRA remains committed to supporting businesses during the transition, offering free technical assistance through call centres and in-person support at its offices.
“We will continue providing targeted support to taxpayers who need help,” he said, adding that VAT operators will no longer be allowed to use EFDs during the transition.
The authority has also conducted nationwide training sessions and raised the VAT registration threshold from MWK25 million to MWK50 million to limit compliance to larger traders.
The standoff comes amid plans for nationwide shutdowns and demonstrations by traders.
However, Small Scale Business Importers and Exporters Association of Malawi chairperson Robert Nachamba said the planned shutdown — initially set for Wednesday — has been postponed to allow further talks with the MRA.
He warned that protests could still proceed if no meaningful outcome emerges from the meeting.
Earlier this year, trader groups in Blantyre and Zomba petitioned the MRA to halt the rollout, citing concerns over the system’s complexity, the requirement to submit sensitive business information, and unreliable internet access.
The MRA has already extended the rollout twice — from February to April 30, and then to May 1, 2026 — following consultations with stakeholders. The original deadline had been November 2, 2025.
The transition to EIS follows amendments to the Value Added Tax Act, which formalised the electronic invoicing system as the standard for issuing tax invoices and maintaining stock records.
Taxpayers were required to begin migrating from EFDs as early as August 2025 by registering on the EIS portal, integrating their systems, and uploading stock records.
Now, with the system in force and resistance mounting, the confrontation between traders and the tax authority is coming to a head.
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