Non-Tariff Barriers

Non-Tariff Measure

NTM classification

F71: Consumption taxes 

Date when the measure came into force

12 August 2005 

Publication where the measure is specified

Value Added Tax Act 

Regulation where the measure is specified

Value Added Tax Act 

Country/Region applying the measure

Malawi 

The rationale of the measure

No specific objective stated 

Coded list of objectives

X: For purposes n.e.s. 

Description of the measure

7.--( I) There is hereby imposed a tax to be known as value added tax
(in this Act otherwise called "Value Added Tax") which shall in accordance with this Act be charged on-
(a) every supply of goods and services made in Malawi;
(b) every importation of goods: and
(c) the supply of any imported service, other than exempt goods and services.

9. Except as otherwise provided in this Act. the rate of Value Added Tax shall be 17.5 per cent. calculated on the value of the taxable supply of the goods. services or import. 

Reference of the measure

Paragraph 7 & 9 

Measure also domestic

No 

Notes

Though the Act states a uniform VAT rate of 17.5, the website of the Malawi Revenue Authority (http://www.mra.mw/domestic/domestic.php?cdoID=3) states the current rate is 16.5% states that the rate is 16.5%. 

Products affected by the measure.

Description

All products and services except exempted items listed in Schedule One and Two of the Act, i.e.
First Schedule: Expempt Supplies
I. Live Animals
Exemption covers live anim<~ls under Customs Tariff Headings 0 I 02.10.00 to
0 I 06.00.00.
2. Animal Products
Exemption covers-
(a) meat and edible meat offals in raw form under Customs Tariff Headings 0201.10.00 to 0210.90.00:
(b) fish and crustaceans molluscs and other acqatic invertebrates under Customs Tariff Headings 0301.91.00 to 0307.99.00:
(c) dairy produce, birds eggs. natural honey, edible products of animal
origin. not elsewhere specified or included under Customs Tariff Headings
0401.10.00, 0401.20.00. 0401.30.00, 0407.00.10 to 0407.00.90 and
0409.00.00; and
(d) products of animals origin not elsewhere specified or included under Customs Tariff Headings 0501.00.00 to 0511.99.00.
3. Vegetable Products in Raw State
Exemption covers-
(a) live trees and other plants, bulbs, roots and the like under Customs
Tariff Headings 0601.10.00 to 0602.40.00, but excluding cut tlowers ;.md
ornamental foliage under Customs Tariff Headings 0603.10.00 to 0604.99.00:
(b) edible vegetables and certain roots and tubers under Customs Tariff
Headings 0701.10.00 to 0714.90.00;
(c) edible fruit and nuts, peel of citrus fruits or melons under Customs Tariff Headings 801.11.00 to 0805.90.00. 0807.11.00 to 0807.20.00, and 0809.10.00 to 0814.00.00;
(d) coffee and tea under Customs Tariff Headings 090 1.11.00, 090 1.12 .(X). 0902.10.00 and 0902.20.00;
(e) cereals under Cutstoms Tariff Headings 1001.10.00 to 1008.90.00;
(f) products of the milling industry, malt starches, inulin and wheat gluten under Customs Tariff Headings I 102.1 0.00 to I 107 .20.()(); and
(g) oil seeds and oleaginous fruit, miscellaneous gmins seeds and fruit. industrial or medicinal plants, straw and folder under Customs Tariff Headings 1201.00.00 to 1214.90.00, but excluding products under Customs
Tariff Headings 1208.10.00, 1208.90.00 and 1210.10.00 to 1210.20.00: and
(h) unmanufactured tobacco refuse of Customs Tariff Heading 24.01.
4. Water
Exemption covers non-mineral or aerated water without additives (tap or well) under Customs Tariff Heading 2201.90.00.
5. Residue.'! and Waste from the Food Industries
Exemption covers residues and waste under Customs Tariff Headings 2301.10.00 to 2301.20.00, 23.02, 23.03 and 2304.00.00 to 2306.90.00.
6. Petroleum Products·
Exemption covers petroleum oils under Customs Tariff Headings 27 10.00.11 to 2710.00.20 and 2710.00.41 to 2710.00.50.
7. Pharmaceutical Products
Exemption covers pharmaceutical products; under Customs Tariff Headings 3001.10.00 to 3006.60.00.
8. Miscellaneous Chemical Products
Exemption covers insecticides, fungicides and herbicides under Customs Tariff Headings 3808.10.00 to 3808.90.00.
9. Fuelwood
Exemption covers saw-dust. wood waste and scrap.
10. Printed Matler~Books and Ncn·spapers
Exemption covers printed hooks and newspapers under Customs Tariff Headings 48011.00.00, 4901.10.00 to 4903.00.00, 4905. 10.00 to 4905.99.00 and 4907.00.90 .
11. Other Furnishing Articles
Exemption covers mosquito and sand-fly nets under Customs Tariff Headings 6304.91.10, 6304.1.92.10. 6304.93.10 and 6304.99.10.
12. Coin
Exemption covers "Other coins"' under Customs Tariff Heading 711 H.90.00.
13. Mechanical Appliances (whether or not hand-operated) for projecting. dispersing or spraying liquids or powders
Exemption covers pumps for agricultural or horticultural use and mechanical
appliances under Customs Tariff Headings 8413.20.00. 8414.81.00. 8413.82.10
and 8424.81.00, 84.36 and 84.37.
14. Vehicles. other titan railway. train way rolling stock
Exemption covers tractors, ambulances and goods carrying: vehicles under Customs Tariff Headings 8701.10.00 to 8701.90.00 and 8703.90.20.
15. Medical Equipment
Exemption covers optical. photographic, cinematographic, measuring.
checking instruments and apparatus under Customs Tariff Headings 9001.10.00 to 9001.40.90. 9001.50.10.9001.90.10 to 9001.90.20. 9002.19.10,9004.90.10 and 9018. 11.00 to 9023.00.00.
16. Educational Services
17. Banking and Life Insurance Services
18. Postal Services
19. Funeral Services
Exemption includes provision of vehicles. coffins, wreaths and tombstones.
20. Medical Services
21. Transport of exports
22. Rental and sale of properties used for residential purposes
23. Ordinary Bread
Exemption covers ordinary bread under Customs Tariff Subheading 1905.90.10.

SECOND SCHEDULE (s. 21)
ZERO-RATED SUPPLIES
1. Export of goods and services
2. Goods shipped as stores on aircraft and vessels leaving the territory of Malawi.
3. Fertilizers
Zero rating covers fertilizers under Customs Tariff Headings 3101.00.00 to 3105.90.00.
4. Sheath Contraceptives (Condoms)
Zero rating covers condoms under Customs Tariff Heading 4014.10.00.
5. Exercise Books
Zero-rating covers exercise books under Customs Tariff Subheading 4820.20.00.
6. Laundry Soap
Zero-rating covers laundry soap under Customs Tariff Subheading 3401.19.00.
7. Salt
Zero-rating covers salt under Customs Sub-heading 2501.00.00.
8. Machinery
(a) zero-rating covers agricultural, horticultural, forestry machinery, e.g. ploughs, harrows, manure spreaders and parts under Customs Tariff Headings 8432.10.00, 8432.21.00, 8432.29.00, 8432.30.00, 8432.40.00, 8432.80.10, 8432.80.90.
(b) zero-rating covers harvesting machinery, e.g. lawn mowers, egg grading machinery, combine harvesters, haymaking machinery, under Customs Tariff Headings 8433.11.00, 8433.19.00, 8433.20.00, 8433.30.00.
8433.40.00, 8433.51.00, 8433.52.00, 8433.53.00, 8433.59.00, and 8433.60.00.
9. Motor Vehicles for Transport of Goods
(a) zero-rating covers motor vehicles under Customs Tariff Hcadings"
8704.21.30"-Single cabin, GVW> 2.99 tonnes <5 tonnes
"8704.22.10"--GVW>5 tonnes <10 tonnes
"8704.22.20"--GVW> 10 tonnes <15 tonnes
"8704.22. 90"--GVW> 15 tonnes <20 tonnes
''8704.23.00"--GVW>20 tonnes etc.
"8704.31.30"-Single cabin, GVW>2.99 tonnes <5 tonnes
"8704.32.30" --GVW> 15 tonnes<20 tonnes
"8704.32.90"--GVW> 20 tonnes
(b) zero-rating covers trailers, semi trailers under Customs Tariff
Headings-
"8716.31.10"-GVW < 10 tonnes
"8716.31.20" -GVW < 15 tonnes
"8716.31.30"-GVW > 15 tonnes
"8716.39.30"-GVW>2.99 tonnes<IO tonnes
"8716.39.40"-GVW> 10 tonnes 

Countries/Regions affected by the measure.

Description

Entire world