The Malawian government has officially rolled out a new electronic invoicing framework for businesses operating in the country, replacing the previously used Electronic Fiscal Devices system under the Value Added Tax Act.

The Value Added Tax (Electronic Invoicing System) Regulations, 2025, gazetted on 9th January 2026 and signed by Finance Minister Joseph Mathyola Mwanamvekha, require all taxable persons and businesses to register on the new system and conduct all transactions through it.

What Changes for Businesses

Every business operating in Malawi must now create an account on the electronic invoicing system, submitting details including their business name, taxpayer identification number, physical address, and contact information. Upon registration, businesses become "users" of the system and are bound by its terms and conditions.

Tax invoices issued through the system must include a range of information — among other things, item descriptions and prices, the terminal's identification number, a fiscal logo, and a QR code. Businesses are also required to keep their terminals visible to customers at all times and may not transfer them to any other party.

If the system goes offline, users have a six-hour window to report the failure to the Commissioner General and record sales by alternative means, with those records to be entered into the system within 72 hours.

Third-Party Systems Must Be Certified

Businesses wishing to use their own point-of-sale software must ensure it is certified by the Commissioner General before connecting it to the national system. The certification requirements are extensive — systems must be tamper-proof, capable of storing data for at least six years, unable to delete or reverse entered records, and must assign a unique identifier to every invoice.

Transition Period

Businesses still using the old Electronic Fiscal Devices have until 31st January 2026 to continue issuing invoices from those devices. However, invoices generated by the old devices cannot be used to claim input tax deductions after 31st July 2026, giving businesses a window to transition their records.

Penalties for Non-Compliance

The Commissioner General is empowered to investigate businesses suspected of submitting incorrect information, tampering with the system, or engaging in fraudulent activity. Those found in breach face restricted system access, financial penalties, or criminal prosecution.

Customers also have obligations under the new rules — they are required to retain their tax invoices and must report to the Commissioner General if a business refuses to issue one.

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