The bulk of domestic revenues for Malawi come from tax revenue, which are divided into direct and indirect taxes. Tax performance determines government day-to-day operational functions and efforts to strengthen the same cannot be overemphasized. Some studies have concluded that the primary obstacle to revenue mobilization is weak administration. Indirect taxes are the main contributors of the Malawi central government revenue. Malawi Revenue Authority (MRA) piloted the use of Electronic Fiscal Devices (EFD), a new system for collecting Value Added Tax (VAT) in March 2014 to strengthen tax administration. Since inception, VAT there has been an increase in total and average VAT compared to the months before the EFDs. However, the initiative has countered some challenges, including traders giving customers the option, whether or not to get a receipt. There is need for improved tax education, policy coordination, inclusive decision-making and incorporation of the informal sector in VAT and generally tax revenue policy.