Regulatory updates - Malawi

On November 4, 2025, MRA published an announcement extending the mandatory start date of its electronic invoicing system (EIS) from November 1, 2025, to February 1, 2026. The EIS was implemented on August 2, 2025, initially with a three-month transition period.

The postponement of EIS was granted to allow taxpayers and stakeholders additional time to familiarize themselves with the new system’s technical requirements and operational processes, and to migrate from hardware-based electronic fiscal devices (EFDs) to the EIS platform.

In 2024, the Ministry of Finance (MoF) in Malawi announced its plans to transition from the traditional EFDs to a software-based EIS solution. Subsequently, the VAT Act was amended to reflect these changes.

Under the EIS, all VAT invoices must be generated through the EIS platform, which validates invoices and reports transaction data to the MRA in real time. Invoices can be issued through a computer, mobile or web-based point of sale terminal or by using MRA-certified third-party invoicing systems.

After the transition period, tax invoices issued via EFDs will no longer be recognized for claiming VAT input. Penalties will apply for non-compliance. 

On 23 February 2024, the Finance Minister of Malawi, Chithyola Banda, announced these changes during the 2024/25 Budget Plan presentation.  

The new system will lead to a more effective and accurate collection of VAT and will reduce compliance costs.  

Further details will be announced by the Malawi Revenue Authority.