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VAT Calculation

Standard rate: 16.5%

Summary (2025 Rates)

Total Amount
MK0
Amount including VAT
VAT Amount
MK0
Value Added Tax
Base Amount
MK0
Amount excluding VAT
VAT Rate: 16.5%
Effective: 2025-01-01

How VAT Works In Malawi (2025)

Understanding VAT Calculations

  1. Adding VAT: When you need to add VAT to a price, multiply the base amount by (1 + VAT rate). For Malawi's 16.5% rate: Amount × 1.16
  2. Removing VAT: To find the price excluding VAT from a VAT-inclusive price, divide by (1 + VAT rate). For 16.5%: Amount ÷ 1.16
  3. VAT Amount: The VAT portion alone is calculated as: (Total Amount × VAT Rate) ÷ (1 + VAT Rate)

Quick Examples

  • Add VAT: MK100 + 16.5% VAT = MK116.50
  • Remove VAT: MK116.50 ÷ 1.16 = MK100