Companies and people with annual turnover beneath Rwf2 million is not going to be required to make use of Digital Billing Machines (EBMs) below a proposed ministerial order, with different measures to be launched to make sure transactions are correctly recorded.
The change is a part of a collection of tax reforms not too long ago authorised by the Cupboard aimed toward strengthening governance, supporting companies, and sustaining financial development.
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In response to the Rwanda Income Authority (RRA), the reforms are meant to align the EBM framework with altering enterprise practices after 13 years of implementation. The authorized foundation for EBMs dates again to 2013 below the regulation governing tax procedures.
In response to Abel Ntegano, Director Normal for Tax Coverage on the Ministry of Finance and Financial Planning, the modifications are aimed toward addressing challenges which have emerged over time whereas enhancing how transactions are recorded.
“Various measures shall be thought-about to make sure transactions are correctly recorded the place digital billing machines aren’t relevant,” he mentioned throughout a current press briefing.
“The method takes into consideration the realities confronted by totally different classes of taxpayers whereas sustaining the necessity for efficient tax administration,” he added.
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Angello Musinguzi, the Tax and Regulatory Companion at Garnet Companions Restricted, a agency offering tax, audit and advisory companies, mentioned the exemption for some small companies from utilizing EBMs shouldn’t be considered as eradicating them from the tax system.
He mentioned
“Companies may nonetheless have their transactions monitored by different digital methods, together with platforms linked to digital funds equivalent to cellular cash,” he mentioned.
Musinguzi defined that as digital fee methods proceed to develop, authorities may discover totally different digital channels to enhance transaction visibility whereas making compliance simpler for small taxpayers.
“Many small companies generate restricted income, which means strict enforcement of EBM necessities amongst such companies may require important authorities sources in contrast with the quantity of tax income collected from them,” he mentioned.
Patrons may generate personal invoices
One other provision within the ministerial order permits patrons to generate an digital bill if a vendor fails to problem one promptly or delays the method.
In response to Ntegano, a system has been launched that enables the customer to provoke the bill technology course of, nevertheless it should nonetheless be confirmed by the vendor.
“All these measures have been put in place to supply totally different stakeholders with easier methods to work collectively, in order that tax assortment might be carried out extra successfully,” he mentioned.
Throughout the 2025/26 fiscal yr, RRA collected Rwf3,956.4 billion in taxes, attaining 104.2 per cent of its Rwf3,795.4 billion goal.
