Specific VAT rules
goods are zero-rated. Input tax may be claimed on the acquisition of secondhand goods.
VAT relief on bad debts may be claimed if the supplier has obtained a court judgement for the debt or can show that all legal means of pursuing the debt have been exhausted.
Designated shops or outlets are accorded tax-exempt status, e.g. duty free shops at airports. There are no other exemptions for tourism.
Land and buildings
VAT is not chargeable on the sale or rental of residential property. VAT is chargeable on the sale or rental of nonresidential property.
Transfer of a business
The authorities have to be notified within 30 days of cessation, sale, change of location, material change in the business or material change in ownership.
Leasing or letting of goods on hire is subject to VAT.
The supply of secondhand goods is subject to VAT if supplied by a taxable person. Exports of secondhand
VAT is charged on the importation of goods. Services rendered to a foreign company are taxable unless the supply is a zero-rated export.
Contact details – PricewaterhouseCoopers, Malawi
PwC contact persons
Johann Boshoff Misheck Msiska
Corner Glyn Jones Road and Chilembwe Avenue,
PO Box 1147 Blantyre
Other indirect taxes
Import duty is applicable at various rates, depending on the nature and the source of the item.
Excise duty applies to qualifying goods produced and manufactured in Malawi and qualifying goods imported into Malawi.
Conveyancing applies to land and buildings situated in Malawi.
Stamp duty is charged at 3% on absolute conveyance or vesting of real property or agreement for sale. Other rates apply depending on the nature of the matter. The transfer of shares is not subject to stamp duty.
+265 (0)1 820 322