The wait is over. Final consumers continue to register their phone numbers on EBM invoices every time they purchase. As a result, in the coming days, they will receive a 10% reward of the value-added tax (VAT) they paid on each EBM invoice they received.

The incentive aims to encourage every consumer to request EBM invoices. The invoicing system has become a crucial tool for promoting transparency in business and taxation through accurate data.

The law establishing value-added tax provides for a rate of 18 per cent on the value of taxable goods or services supplied in Rwanda or imported.

Pascal Ruganintwali, Rwanda Revenue Authority (RRA)

According to Pascal Ruganintwali, the Commissioner General of Rwanda Revenue Authority (RRA), the technology, introduced more than a decade ago, has enhanced transparency in taxation given that a merchant who issues an EBM invoice facilitates the authority in determining the right tax.

However, some traders do not issue EBM invoices or issue invoices that do not match their sales as a way to evade tax.

"This not only hinders getting the right tax but also brings inequality between businesses. Because as people who are together, selling similar things, if one does not issue EBM invoices and another one is properly issuing them, they cannot sell at the same prices,” he continued.

Ruganintwali explained that the government opted to reward final consumers who request EBM receipts as an incentive to encourage those who don’t pay their dues to do so.

"Whenever you request an EBM invoice and pay VAT for your purchase, you will receive a reward equivalent to 10% of the VAT paid. And if they refuse to issue the invoice and you inform RRA to intervene, we will order that person to make the invoice for the final consumer to receive the 10% of the VAT,” he said.

In addition, the consumer who reports a non-compliant trader will receive 50 per cent of the penalty imposed on the merchant.

"This is to warn them, we will no longer tolerate people who do not issue EBM receipts; they will be punished,” he added.

The law on tax procedures stipulates that a person who carries out any taxable activity issues an invoice generated by an electronic invoicing system.

A person registered on the VAT who sells goods or services without issuing an electronic invoice is liable to an administrative fine of 10 times the value of the evaded VAT. In case the fault is repeated within a period of two years, the defaulter is liable to an administrative fine of 20 times the value of the evaded VAT.

Except for taxpayers registered for the VAT, any person who is required to issue an EBM invoice who fails to do so is liable to an administrative fine of two times the value of the transaction.

The final consumer who provides information about a non-compliant trader will receive a reward of 50 per cent of the fines imposed on the trader.

Eligibility criteria

To start receiving this reward, one is required to register by dialling *800# on the mobile phone. All you need to do is enter your ID number, and your phone number will be automatically set up for your reward.

You can also register through www.MyRRA.rra.gov.rw. Both of these methods help you track how your reward is accumulating as you progress with your purchases.

Rewards are granted after verifying that the final consumer meets the criteria, including having received an EBM invoice indicating his or her mobile telephone number.

Ministerial Order n° 002/24/03/TC of 08/03/2024 determining the reward based on the value-added tax stipulates that "the reward amount is quarterly deposited to the mobile money or bank account designated by the final consumer within 15 days following the declaration of the value-added tax.”

A single invoice of value equal to or exceeding FRW 1,000,000 is subject to verification before granting the reward provided for in this Order.

Before granting the reward to the final consumer, the Commissioner General may request additional information to prevent abuse.

In case the final consumer requests and is denied an EBM invoice or receives one that does not match the amount paid, they can inform RRA on 0739008010 (WhatsApp), attaching a proof of payment, the place of purchase identified by TIN or address, the under-valued EBM or non-EBM invoice received.