Invoicing and Tax regulation in Rwanda

Invoicing Regulation in Rwanda

In Rwanda, invoicing is regulated by the Rwanda Revenue Authority (RRA) and it's mandatory for businesses to issue a tax invoice for any transaction above 100,000 RWF. The invoices should include details such as business names and Tax Identification Numbers of both the seller and buyer and the description, quantity, unit price, and total price of goods or services sold.

Real-time Reporting/Fiscalization

Fiscalization in Rwanda is implemented as a real-time reporting on all business transactions and it is compulsory for businesses to have Electronic Billing Machines (EBMs). These machines report all transactions in real-time to the RRA, ensuring compliance and transparency. The fines and penalties for non-compliance can be steep.

E-Invoicing in Rwanda

From January 2022, all businesses in Rwanda are required to switch to e-Invoicing, according to the RRA. The e-invoicing system is expected to improve efficiency, reduce the cost of doing business and enhance tax compliance. The Authority provides an e-invoicing system that businesses can integrate with, making the process seamless.

VAT/GST/Tax Compliance

Rwanda levies 18% VAT on the supply of all goods and services. All businesses with an annual turnover exceeding 20 million RWF must register for VAT, making it compulsory for most B2B and B2C businesses. For B2G businesses, the government is exempted from paying VAT. Tax compliance is strictly enforced by the RRA and all businesses are expected to file monthly VAT returns by the 15th of every month following the tax period.

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