The "VAT 5 Certificate Validation" endpoint ensures the accuracy and existence of the VAT 5 certificate details submitted by a customer. This is essential for confirming eligibility for VAT relief on certain transactions. In the context of sales transactions, if a transaction qualifies for VAT relief (i.e., isReliefSupply is true), the certificate details must be validated before processing the transaction
VAT Relief is a process administered by the Malawi Revenue Authority (MRA) that allows certain approved buyers—such as NGOs, government projects, and donor-funded initiatives—to purchase goods or services without paying Value Added Tax (VAT), in accordance with approved exemptions under Malawi’s tax laws. To benefit from this relief, the buyer must first register the project with MRA. In Msonkho Online, this involves creating a VAT-free project. Each time the buyer intends to make a qualifying purchase under this project, a VAT5 Certificate is generated within the Msonkho Online system to authorize the VAT-exempt transaction.
The VAT5 Certificate includes:
Project Number
Certificate Number
Quantity of goods to be purchased
Issue Date and Expiry Date
This certificate is presented to the seller at the time of purchase. To process the VAT relief transaction:
The VAT on each standard-rated item is removed, leaving only the taxable amount (the amount before VAT) to be paid.
Before the transaction is completed, the VAT5 Certificate must be validated using the "Validate VAT5 Certificate" endpoint.
Important Note:
The VAT5 Certificate can be reused until the approved quantity is fully consumed. For example, if the declared quantity is 40, the buyer may use the certificate to purchase 20 items now and use the remaining balance later, until all 40 items have been purchased.
The contents of 4.4.4. VAT 5Certificate Validation
