Standard 17.5% VAT. Calculate VAT-inclusive, VAT-exclusive, reverse VAT extraction, and multi-item invoice totals. Current 2026 MRA rate.
Calculate how much VAT the buyer withholds and remits to the tax authority on this transaction.
Malawi applies Value Added Tax (VAT) at a standard rate of 17.5% after MRA announced an increase from 16.5% in the new tax measures for the 2025/26 Mid-Year Budget Review. VAT was introduced in Malawi in 2005, replacing the previous surtax system. A zero rate (0%) may apply to qualifying supplies such as exports and specified basic items, while exempt supplies sit outside ordinary VAT charging and input recovery. The Malawi Revenue Authority (MRA) administers VAT. The 2026/27 Budget Policy Statement says the mandatory VAT registration threshold is being raised from MWK 25 million to MWK 50 million annual turnover and links VAT-registered businesses above that line to Electronic Invoicing System compliance. VAT returns are generally filed monthly, with MRA reminder materials using the 25th of the following month as the VAT return and payment date. Check the latest MRA notice before filing because rate, threshold and EIS rules can move.
VAT was introduced in Malawi in 2005, replacing the previous surtax. MRA's new tax measures notice now lists the 2026 standard rate as 17.5%.
Zero-rated food items include maize flour, rice, bread, milk, sugar, cooking oil, salt, and other basic staples. Agricultural inputs and fertilizers are also zero-rated to support the farming sector.
Businesses with annual taxable turnover exceeding MWK 50 million must register for VAT with the Malawi Revenue Authority. Voluntary registration may be available for businesses below this threshold.
Monthly VAT returns must be filed by the 25th of the month following the tax period. Payment must accompany the return. The MRA provides electronic filing through its online platform.
The Malawi Revenue Authority (MRA) administers VAT, income tax, customs duties, and other government revenues. The MRA provides online services for registration, filing, and payment.
This high-stakes calculator links the authority sources, method notes, test cases, and limitations used to check the numbers shown on this page.
Malawi - high risk - AfroTools source audit
AfroTools calculators are decision-support tools. Always confirm filing, registration, and remittance duties with the linked authority or a qualified local adviser.
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