Blantyre Magistrates Court has convicted Feng Shaohong, a Chinese national, co-owner of ABC Shop in Blantyre for failing to issue and retain an Electronic Fiscal Devices (EFDs) receipt.
According to a Steve Kapoloma, Malawi Revenue Authority (MRA) Deputy Director of Corporate Affairs, Shaohong in February this year failed to issue and retain a fiscal receipt after selling assorted items worth MK 60, 590 to a customer at her shop’s premises in Blantyre.
The intention of not using the EFD was to evade payment of Value Added Tax (VAT) to the Malawi Government which is contrary to Regulation 28 (2) of the Value Added Tax (Electronic Fiscal Devices) Regulations and Section 63(1) of the Value Added Tax Act (Cap. 42:02)
On 23 June, 2015, the Court convicted the trader and sentenced her to a fine of MK1,000,000 or 18 months imprisonment in default.
Shaohong has since paid the fine and a court order to redirect the paid funds to MRA has been issued.
“MRA is reminding all VAT registered businesses to always comply with EFD regulations by using the EFD machines honestly and issue fiscal receipts to their customers,” Kapoloma said.
“MRA is appealing to the public to help in the implementation of the use of the EFDs by demanding receipts and report any suspected malpractice relating to the EFDs.”
MRA is also encouraging all businesses who want to register for VAT to inquire the tax regulatory body.