From August 2025, the Malawi Revenue Authority (MRA) began encouraging VAT-registered operators to migrate to its new Electronic Invoicing System (EIS), which will replace the existing Electronic Fiscal Device (EFD) system. The deadline for migration is November 2025, after which EFDs will no longer be accepted.

What is changing

The EFD system — physical devices attached to point-of-sale operations that generate VAT-compliant receipts — is being replaced by a software-based Electronic Invoicing System. The EIS operates through a digital platform, enabling real-time or near-real-time reporting of invoices to the MRA.

This is part of a broader pattern of revenue administration modernisation in Malawi. The MRA has been one of the more functional public institutions in Malawi over the past decade, and the EIS migration continues that trajectory.

What it means for foreign companies

Any company operating in Malawi as a VAT-registered entity needs to ensure compliance with the November 2025 deadline. This involves:

  • Registering with the MRA’s EIS platform
  • Updating invoicing processes and software
  • Training staff on the new system
  • Ensuring internet connectivity sufficient for real-time reporting (a practical constraint in some locations)

Companies setting up in Malawi after August 2025 will register directly onto the EIS from the start — no legacy EFD transition required.

Broader tax administration context

The EIS introduction sits alongside other MRA digitisation efforts. Malawi’s tax administration has been improving in terms of automation, and the MRA’s enforcement capacity has grown. Foreign companies should assume a functioning tax authority that monitors compliance — not the informal approach to taxation that sometimes characterises perceptions of African markets.

VAT registration thresholds, rates, and filing requirements should be understood before commencing operations. We address tax structure in all Market Entry engagements and connect clients with reliable local tax advisors.

Our read

The EIS migration is a routine compliance matter, but it illustrates the broader direction: Malawi’s regulatory environment is becoming more digitalised and more consistently enforced. This is ultimately good for business — predictable rules, uniformly applied, are better for planning than discretionary enforcement. The transition period requires attention to ensure no compliance gaps.

Sources: Bridgepath Capital Monthly Economic Report August 2025, Malawi Revenue Authority.