Malawi amended its VAT Act to introduce VAT rules for cross-border digital services supplied to consumers in Malawi. The rules apply to non-resident digital services suppliers, intermediaries, and electronic marketplace operators.

When do Malawi’s new digital VAT rules take effect?

The Value Added Tax (Amendment) Act, 2026 was assented to on 9 April 2026, published on 14 April 2026, and entered into force on 15 April 2026.

Who must register for VAT in Malawi?

As of 15 April 2026, foreign digital services providers, electronic marketplace operators, and intermediaries supplying in-scope digital services to consumers in Malawi must register for VAT and charge 17.5% Malawi VAT on taxable supplies.

Which digital services are subject to Malawi VAT?

Examples of in-sccope digital services:

‍The legislation introduces a broad definition of “digital services”, covering:

• streaming services,
• cloud computing,
• software downloads and subscriptions,
• online advertising,
• digital marketplace facilitation,
• e-books and online publications,
• mobile applications and in-app purchases.

Do the rules apply to B2B or B2C transactions?

The rules primarily target B2C transactions, as the definition of “recipient” refers to a non-taxable person located in Malawi.

Marketplace and intermediary VAT obligations

The amendment also introduces specific rules for marketplace facilitators and intermediaries. Electronic marketplace operators and intermediaries facilitating digital services into Malawi can become liable for VAT registration and compliance obligations.

Non-resident suppliers must register regardless of revenue threshold

The amendment increased the domestic VAT registration threshold from MWK 25 million to MWK 50 million per annum. However, non-resident digital services suppliers, intermediaries, and electronic marketplace operators must register for VAT regardless of whether they meet the MWK 50 million registration threshold.

What businesses should do next

This change significantly expands Malawi’s VAT regime for the digital economy. Businesses supplying digital services to consumers in Malawi should assess whether they are now required to register for VAT and charge Malawi VAT on in-scope supplies, and ensure their tax determination, invoicing systems are configured accordingly.