The Malawi Revenue Authority (MRA) says the rollout of a new Value Added Tax (VAT) revenue collection technology, known as the Electronic Invoicing System (EIS), will enhance transparency and accountability by enabling real time monitoring of sales transactions.
The remarks were made on Saturday in Lilongwe during a media training session on the EIS and rental income taxation. The training aimed to promote better understanding of the new systems and ensure accurate dissemination of information to the public.
MRA Spokesperson Wilma Chalulu said the EIS is replacing the Electronic Fiscal Devices (EFDs) system with a more modern and efficient platform and has urged people to embrace the new technology.
She disclosed that the previous system faced several challenges, including under declaration of VAT and failure to issue receipts in some cases, which made it difficult for the authority to effectively track transactions.
Chalulu explained that under the new arrangement, all taxpayers are required to acquire the EIS, integrate their existing systems with the platform, register through the EIS taxpayer portal, and upload stock records for those dealing in goods.
"EIS is just modern system and it will be able to account for VATand it is going to interface the traders with MRA and ease the processes by providing information in real time for the sake if accountability, " said Chalulu.
On rental income tax, Chalulu said the legal framework has long been in place, but enforcement is now being strengthened.
She disclosed that MRA is currently mapping property owners who earn rental income, with enforcement expected to begin 1st May 2026.
"The rental income is not a new tax but may be on enforcement side for some reasons it was not as it should have been conducted. We are now going to do the mapping on who is supposed to pay the rental taxation starting with with low density areas," she added.
Rental income taxation will be rolled out in phases, starting with low density residential areas such as in Lilongwe, the initial focus will include Areas 43, 47, 12, and 10, while in Blantyre, the exercise will cover areas such as Nyambadwe,Sunnyside, Namiwawa and New Naperi, among others.
According to the law, rent subject to withholding tax includes payments for both movable and immovable property, whether paid under a lease agreement or otherwise. However, it excludes rent paid by an individual whose sole source of income is employment and where the rent relates to property used for personal purposes.
