RRA implements system to assist traders in TIN security management
Wednesday, May 24, 2023
EBM serves to facilitate taxpayers to easily calculate their taxes. RRA has introduced new controls that will be in place to limit TIN usage strictly to the TIN owner. File

The Rwanda Revenue Authority (RRA) informs taxpayers that a new method for managing TIN security has been implemented as of Monday, May 22, 2023.

RRA said that the move of implementing the new purchase code system, comes after receiving repetitive complaints from taxpayers that anyone could use their TIN during purchase of goods and services. Businesses then requested RRA to put in place a mechanism that can help them to protect their business TIN against those people who could use them illegally.

From now, a buyer will be able to ensure that a specific purchase has been made by him before an invoice is issued.

"Whenever a vendor purchases goods and products for reselling, they are requested for a code, or to dial *800# and follow the prompts on their mobile telephone registered to their TIN,” the RRA announced.

The code is generated using a mobile phone registered with the Tax Identification Number. Through *800#, the buyer selects 5 (request code) after choosing the language. The buyer is then asked to enter their TIN and the seller’s TIN to get a security code that will enable the seller to issue an electronic invoice.

Rwanda Revenue Authority staff on duties at head office at Kimihurura. File

The RRA spokesperson, Jean-Paulin Uwitonze, said that a buyer can add as many numbers as they want to one Tax Identification Number (TIN) to allow them to have different possibilities of people who can make purchases for them.

Even though the tax administration confirmed the possibility for taxpayers using EBM Version 2.0 to issue electronic invoices using the generated security code, it has advised taxpayers to contact the nearest RRA office in case they don’t see where to generate the code in their system, for immediate assistance.

"Taxpayers who have not yet updated their EBM system are urged to visit their nearest RRA office to avoid challenges that might be caused by an un-updated system,” reads the announcement.

Some businesses were worried that they could fail to issue invoices while working offline. Uwitonze explained that RRA has considered the issue. "A code can be verified offline to allow those not connected to the internet to continue their operations.”