Businessperson convicted, fined K1m over MRA receipts
Blantyre Senior Resident Magistrate’s Court has convicted Feng Shaohong, a Chinese national and co-owner of ABC Shop in Blantyre, after finding her guilty of failing to issue and retain an electronic fiscal device (EFD) receipt.
By law, businesses are required to issue EFD receipts to customers as proof that they have paid value added tax (VAT) to public tax collector Malawi Revenue Authority (MRA).
However, in February this year Feng allegedly failed to issue and retain an EFD receipt after selling assorted items worth K60 590 to a customer at her shop’s premises in Blantyre contrary to Regulation 28(2) of the Value Added Tax (Electronic Fiscal Devices) Regulations as read with Section 63(1) of the Value Added Tax Act.
MRA dragged the businessperson to court where on June 23 she was convicted and fined K1 million or in default serve 18 months imprisonment with hard labour.
Feng has since paid the fine.
In the wake of this development, MRA deputy director (corporate affairs) Steven Kapoloma, in a statement, urged VAT registered businesses to comply with EFD regulations by using the machines honestly and issuing receipts to their customers. In the same statement, MRA is also encouraging the public to demand receipts for every purchase made.
