The Malawi Revenue Authority (MRA) has penalised 131 Value Added Tax (VAT) operators for failing to purchase and produce evidence of acquiring Electronic Tax Registers (ETRS) in the first phase of the Electronic Fiscal Devices (EFDs).
The first phase of the project commenced on March 6, 2014 and was expected to end on July 31 2014, but was delayed with a stay order obtained by some traders claiming some irregularities with the project.
Court however vacated the stay order in the month of August, making the project operational again.
According to the information sourced from its website, the tax collecting body started the enforcement on the 20th of August, 2014 with an agenda to ensure that every registered operator of VAT belonging to the first phase, especially in the catchment areas or cities of Blantyre, Lilongwe and Mzuzu have the devices.
The EFD offences posed ranges from failure to use EFDs, fraudulent use of EFDs, tampering with EFDs and their software, failure to comply with any obligation as a user or supplier, failure to demand a fiscal receipt, failure to issue a fiscal receipt to other general offences.
EFD Enforcement Manager, Bentry Khonje said the fined taxpayers did not adhere to the request by the Authority, urging them to replace their receipt systems with ETRs by July 31, 2014, hence the fines.
“During the first two weeks of our operations we managed to visit 1064 operators’ country wide. Of the operators 773 had bought the machines but were yet to activate them, 153 were using the machines but 131 taxpayers were penalised for failure to produce evidence of purchase of the EFDs.
“The fined traders are expected to pay a fine of K500,000 within a period of 14 days from the day they were fined and on top of that acquire the machines, failing which will attract a stiffer punishment ,” said Khonje.
Khonje further said the aim of the enforcement is to bring equality amongst taxpayers so that all VAT operators acquire fiscal devices especially those that are in the first phase of the ETRs.
Section 46 of the VAT Act and Sections 24 to 30 of the Electronic Fiscal Devices (EFD) Regulations of 2014, stipulates offences, related fines and penalties for VAT operators who breach EFDs provisions.
He therefore urged all VAT operators who are in the first phase and have not yet purchased ETRs, to procure, install and start issuing fiscal receipts or invoices with immediate effect.
Meanwhile, the Malawi Revenue Authority (MRA) is gearing up for the second phase of the Electronic Fiscal Devices (EFDs).
This phase will involve the introduction of Electronic Signature Devices (ESDs) and Electronic Fiscal Printers (EFPs) to all businesses that issue receipts through computerised systemsFollow and Subscribe Nyasa TV :