Malawi Budget Statement for 2021-22 Delivered

VAT Measures

  • An increase in the VAT registration threshold from MWK 10 million to MWK 25 million;
  • VAT zero-rating for fuel ethanol, printed books, and textbooks as part of efforts to promote local productions;
  • VAT zero-rating for fish feed and VAT exemption for machinery specifically used for producing fish feed to support the development of aquaculture;
  • The extension of the VAT exemption for portable sprayers for agricultural or horticultural to all such sprayers, including mounted sprayers;
  • The removal of import VAT on:
    • raw materials for use in the manufacturing of medicaments, pharmaceuticals, and medical apparatus; and
    • raw materials for use in printing and publishing books;
  • Clarifications regarding which transactions are banking transactions exempt from VAT, so that VAT is properly charged on non-banking services;
  • The reduction in the validity of invoices for claiming input VAT by VAT registered taxpayers from 12 months to 6 months in order to address abuse.

Source Orbitax




  • VAT
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