By Burnett Munthali
The Malawi Revenue Authority (MRA) has noted, with concern, misleading information circulating on social media regarding Value Added Tax (VAT), particularly concerning VAT refunds and input VAT claims.
While MRA welcomes public interest in tax matters, some information being shared does not accurately reflect the provisions of the Value Added Tax Act and may mislead taxpayers.
MRA therefore wishes to clarify the legal position on VAT refunds, input VAT claims and compliance obligations.
A VAT refund arises where a VAT-registered taxpayer’s allowable input VAT exceeds output VAT for a tax period and all statutory requirements have been met.
Input VAT is claimable only on goods and services acquired for making taxable business supplies.
VAT incurred on personal, domestic or private expenditure is not claimable and does not qualify for a refund.
Accordingly, purchases for personal use, including building materials, fittings, labour and other goods or services used in the construction, renovation or maintenance of a private residence, do not qualify for input VAT claims and must not be included in VAT returns.
Qualifying business-related expenses may include raw materials, trading stock, office supplies, professional services, capital assets, imports and other goods and services directly linked to taxable business activities.
To claim input VAT, a taxpayer must be VAT registered.
A taxpayer must possess a valid Electronic Invoicing System (EIS) fiscal invoice or other prescribed documentation.
A taxpayer must demonstrate that the goods or services were acquired for making taxable business supplies.
A taxpayer must comply with all requirements under the VAT Act.
A taxpayer must claim the input VAT within the prescribed period.
VAT returns and any VAT due must be submitted and paid on or before the 25th day of the month following the relevant tax period.
Taxpayers are advised to verify tax information directly with MRA before acting on or sharing it.
For clarification on VAT or any other tax matter, taxpayers may visit any MRA office nationwide.
Access to Information (ATI) requests may be submitted through designated ATI officers at MRA offices or through official MRA communication channels in accordance with the Access to Information Act.
MRA remains committed to providing accurate, timely and accessible tax information and encourages taxpayers to seek clarification directly from the Authority whenever in doubt.
