VATupdate

Budget 21/22: Withholding tax of 3% on the customs value of imports, increase VAT registration threshold, …

  • An increase in the VAT registration threshold from MWK 10 million to MWK 25 million;
  • 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;
  • VAT zero-rating for fish feed and printed books;
  • VAT exemption for undenatured ethyl alcohol (ethanol) and for portable and other agricultural or horticultural sprayers;
  • Clarifications regarding which transactions are banking transactions exempt from VAT, so that VAT is properly charged on non-banking services, including that the exemption does not cover fees, charges, or commissions charged for any services provided in the course of or as part of the support of banking services.

The effective dates of the measures are not specified in the amendment acts but are assumed to apply from 1 July 2021 as announced in the Budget Statement for 2021-22, which is the beginning of the standard 2021-22 tax year.

Source Orbitax

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