Businesses and individuals with annual turnover below Rwf2 million will not be required to use Electronic Billing Machines (EBMs) under a proposed ministerial order, with alternative measures to be introduced to ensure transactions are properly recorded. The change is part of a series of tax reforms recently approved by the Cabinet aimed at strengthening governance, supporting businesses, and sustaining economic growth. ALSO READ: Tax revenue reaches Rwf4tn in 2025/26 fiscal year According to the Rwanda Revenue Authority (RRA), the reforms are intended to align the EBM framework with changing business practices after 13 years of implementation. The legal basis for EBMs dates back to 2013 under the law governing tax procedures. According to Abel Ntegano, Director General for Tax Policy at the Ministry of Finance and Economic Planning, the changes are aimed at addressing challenges that have emerged over time while improving how transactions are recorded. “Alternative measures will be considered to ensure transactions are properly recorded where electronic billing machines are not applicable,” he said during a recent press briefing. “The approach takes into account the realities faced by different categories of taxpayers while maintaining the need for effective tax administration,” he added. ALSO READ: How RRA achieved a record Rwf3.2 trillion in revenue Angello Musinguzi, the Tax and Regulatory Partner at Garnet Partners Limited, a firm providing tax, audit and advisory services, said the exemption for some small businesses from using EBMs should not be viewed as removing them from the tax system. He said “Businesses could still have their transactions monitored through alternative digital systems, including platforms linked to electronic payments such as mobile money,” he said. Musinguzi explained that as digital payment systems continue to expand, authorities could explore different electronic channels to improve transaction visibility while making compliance easier for small taxpayers. “Many small businesses generate limited revenue, meaning strict enforcement of EBM requirements among such businesses could require significant government resources compared with the amount of tax revenue collected from them,” he said. Buyers could generate own invoices Another provision in the ministerial order allows buyers to generate an electronic invoice if a seller fails to issue one promptly or delays the process. According to Ntegano, a system has been introduced that allows the buyer to initiate the invoice generation process, but it must still be confirmed by the seller. “All these measures have been put in place to provide different stakeholders with simpler ways to work together, so that tax collection can be carried out more effectively,” he said. During the 2025/26 fiscal year, RRA collected Rwf3,956.4 billion in taxes, achieving 104.2 per cent of its Rwf3,795.4 billion target.
