MRA draws hard line: No retreat no surrender on EIS compliance for businesses

The Malawi Revenue Authority (MRA) says it will not reverse or suspend the implementation of the Electronic Invoicing System (EIS), despite growing resistance from some traders.

This comes as traders are protesting against the EIS which was rolled out on May 1, with some closing their shops in a bid to force MRA to reverse the decision, arguing that the new system infringes on their businesses and operations.

However, speaking at a press briefing in Blantyre, MRA Commissioner General Felix Kingstone Tambulasi, maintained that the authority will not back down, describing the system as a necessary reform aimed at modernizing tax administration and improving efficiency in VAT collection.

He said the EIS has now been fully rolled out and has replaced the Electronic Fiscal Devices (EFDs), which are no longer allowed in use, arguing that the old system is outdated, costly and inefficient for current business operations.

“EIS is simply a new, modern and efficient system for issuing invoices and managing tax records,” said Tambulasi.

Tambulasi dismissed the resistance, saying MRA has already demonstrated flexibility by extending the implementation deadline three times to allow businesses to prepare for the transition.

“It is unfortunate that some traders have chosen to close their shops in protest against the implementation of EIS,” he said. “Such actions are counterproductive. The closure of shops negatively affects businesses themselves and undermines the growth of the Malawi economy.”

According to MRA, more than 7,500 out of 9,000 VAT-registered businesses have already transitioned to EIS, a development Tambulasi said proves that the system is workable and beneficial.

He also cautioned against acts of intimidation targeting traders who have complied, describing such behaviour as harmful to both businesses and the economy.

“We have engaged stakeholders, conducted trainings and extended deadlines. The implementation must now proceed,” added Tambulasi.

Tambulasi further clarified that EIS is not a new tax, but a system designed to improve how transactions are recorded and monitored.

He reiterated that VAT, currently at 17.5 percent, is paid by consumers, not businesses, with traders only acting as agents collecting the tax on behalf of government.

He has since appealed to all businesses to reopen and comply with the system, warning that continued resistance risks disrupting economic activity.