MRA rolls out Withholding VAT system


The Malawi Revenue Authority (MRA) is rolling out an ICT application to facilitate the administration of Withholding Value Added Tax (VAT), a collection method for the consumption tax.

The automated system, which will interface MRA with appointed agents and suppliers, is aimed at ensuring efficient and effective operation of the Withholding VAT scheme.

Commissioner General John Biziwick said in a public notice that the introduction of the automated system is in line with the Value Added Tax-Withholding Agents Regulations of 2018.

“The regulations mandate appointed Withholding VAT agents to withhold VAT levied on supply of goods from individuals and business entities. These Agents include Government Ministries, Departments and Agencies (MDAS),” Biziwick said in the notice published in newspapers.

He said the interface will allow the appointed Agents and suppliers to log into the system using a portal on the MRA website: This will enable the suppliers to view summaries of their VAT withheld and payments of the VAT withheld.

“This is intended to promote validation, accountability and transparency of the Withholding VAT transactions,” added Biziwick.

Since the legal obligation of remittance of VAT for such transaction is shifted from concerned suppliers of goods and services to the appointed Agents, we wish to advise all suppliers that a VAT invoice raised should not be VAT inclusive,” added the Commissioner General.

Withholding VAT involves appointed agents withholding and remitting to MRA VAT on supply of goods and services by individuals and business entities