VALUE ADDED TAX (VAT)
The
required registration threshold is MK25, 000,000, Section 11(1) of the
VAT Act
REGISTRATION
Registration
of a taxable person is mandated under Section 11 (1) of the Value Added Tax
Act.
Voluntary
registration for VAT is covered under Section 11(11)(a)
Registration
on the Electronic Invoicing System for all VAT registered taxpayers.
TAXABLE, EXEMPT & ZERO-RATED SUPPLIES
Ø
Taxable supplies attract
16.5%
Ø
Zero rated supplies attract 0%
and are covered under the 2nd Schedule of the VAT Act
Ø
VAT Exempt supplies are
covered under the 1st Schedule of the VAT Act
RETURN FILING AND PAYMENT OF VAT
Ø Due
date for filing and payment is by the 25th of the following
month
Ø The
mandate for filing of VAT returns is under Section 40 of the Tax
Administration Act
PENALTIES AND INTEREST
Ø Failure
to register Section 88 of the TAA
Ø Failure
to comply with the requirements of an Electronic Tax System Section 95 of
the TAA
Ø
Failure to file a tax return Section
92(1) of the TAA
Ø Failure
to pay tax due Section 87 of the TAA
USD - 1751
GBP - 2425.75 
ZAR - 105.08 
EUR - 2110.49
CAD - 1255.56 
JPY - 11.66 
AUD - 1158.3
