Malawi Revenue Authority (MRA) has urged business operators not to be afraid of the newly introduced Electronic Invoicing System (EIS), saying it is designed to simplify tax compliance and not punish them.
Recently, there have been protests by businesses across the country who were protesting against the implementation of the system.
Speaking to journalists in Blantyre, MRA spokesperson Wilma Chalulu said there are many benefits to the system, such as improving VAT compliance, increasing transparency in tax reporting, reducing tax evasion, modernising revenue administration, lowering compliance costs for businesses, and enabling real-time monitoring of transactions, among others.
“Currently, there are electronic fiscal devices, which were introduced in 2014, but technology has moved on, and we want to make tax compliance easier. That is why we have adopted the electronic invoicing system, which is cheaper and up-to-date with technology,” she said.
The implementation of the system was extended to 1 May this year, and Chalulu said they will roll it out once the date arrives.
“When 1 May comes, we will enforce, and relevant penalties will take effect, and we will also announce what will happen to those who are not complying,” she added.
Taxation experts have been advising MRA to widen the tax base and make sure that it enforces compliance.
