VAT Calculator Malawi (16.5%)

Questions people ask

How do I add VAT to a price?

Multiply the net price by 1.165. A MK100 sale at 16.5% carries MK16.5 of VAT and totals MK116.5.

How do I remove VAT from a total?

Divide the gross amount by 1.165 to get the net, then subtract to find the tax. Dividing, not multiplying by a percentage, is the step people get wrong.

Is the rate current?

The page shows its last review date and the rate field is editable if yours differs.

Which rate applies to what I sell?

The standard rate covers most supplies, but many countries also run reduced rates, a zero rate and exemptions. Zero-rated and exempt are not the same: with a zero rate you still reclaim the VAT on your own purchases, with an exemption you do not. Check your category with Malawi Revenue Authority (MRA).

Do I charge VAT to a customer in another country?

Often not, but it depends on what you sell and to whom. Exported goods are commonly zero-rated, and services to a business abroad are frequently outside the scope or shifted to the buyer. The rule is specific to Malawi; confirm it with Malawi Revenue Authority (MRA) before you leave the tax off.

I used the wrong rate on an invoice I already sent. What now?

Do not reissue the same number. Raise a credit note against it and issue a fresh invoice at the right rate. If the return for that period has already gone in, tell Malawi Revenue Authority (MRA) how you are correcting it rather than waiting to be asked.

Does this round the way my accountant does?

It works to two decimal places and does not round line by line, which is the common convention. Some authorities specify rounding per line and others per invoice, so a difference of a unit or two on a long document is normal rather than an error.