Malawi – VAT on Non-Resident Digital Service Providers 

The Malawi Minister of Finance has announced that the government plans to introduce VAT on digital services provided by non-resident digital service providers. The digital platforms such as Netflix, YouTube, and Facebook are the main driving force behind the government’s decision to introduce VAT on foreign electronic services. 

In the near future, the Ministry of Finance will submit a bill to Parliament that will serve as the foundation for introducing the new regulatory framework. The foreign digital service providers that don’t have a permanent establishment in the country and generate income from B2C supplies to Malawi residents will be obliged to register for VAT, charge it, and collect it under specific rules. 

The VAT accountability shall cover a broad range of foreign providers, including streaming service providers, digital advertising providers, cloud-based service providers, and more. 

Malawi is one of the latest countries that is going to mandate VAT on digital services provided by non-resident providers in 2026. 

In the coming weeks, we will learn more about the outlook for the reporting system, the timeline, and the responsibilities awaiting non-resident providers of B2C digital services in Malawi.