RRA to outlaw non-certified tax receipts

Rwanda Revenue Authority (RRA) will, effective January, scrap tax receipts issued without using electronic billing machines in a bid to do away with manual methods of paying taxes.

Monday, November 25, 2013
RRA will not accept manual receipts. The New Times/ File.

Rwanda Revenue Authority (RRA) will, effective January, scrap tax receipts issued without using electronic billing machines in a bid to do away with manual methods of paying taxes.The move, according to Drocelle Mukashyaka, the deputy commissioner for taxpayer services, will target all VAT-registered taxpayers who are obliged by law to use electronic billing machines while issuing receipts to their clients."Come January 1, 2014, all receipts issued by VAT-registered taxpayers who do not use Electronic BillingMachines will not be accepted as genuine receipts,” Mukashyaka said.The initiative follows a requirement issued by RRA for all registered taxpayers to have the machines by the end of this year.Mukashyaka said electronic billing machines will help to modernise sales outlets and combat unfair competition occasioned by tax evasion."Several taxpayers are currently using these machines, so leaving others without them would create unfair competition and affect business as well as revenue collection,” she said.RRA listed companies authorised to supply e-billing machines, including, Pergamon, Inzonvou and AA-UNI Rwanda Ltd.The machines replace manual audits by automatically calculating value added tax owed by businesses to RRA, as well as controlling sales and stock by processing and storing invoices.The tax law says large taxpayers who fail to use the billing machines shall pay a fine of Rwf20 million. Medium tax-payers will pay a fine of Rwf10 million, while small and micro taxpayers will pay Rwf5 million and Rwf1m fine, respectively.Transporters facilitated Meanwhile, RRA last week launched the Authorised Economic Operator (AEO), a milestone in facilitating international movement of goods in the region as recommended by the World Customs Organisation.The programme is set to benefit exporters and importers by introducing an internationally recognised security standard in the supply chain."This is a ground-breaking facility to cut the red tape affecting trade and I am confident it will pave the way for business development in EAC as well as make Rwanda an even easier place to do business,” Ben Kagarama, the commissioner general of the tax body, said in a statement.AEO is a concept developed by the World Customs Organisation to support and grant security in international movement of goods."Through this concept, all chain operators will be accredited to ensure the integrity of information, and that what is said to be in a container, is in the container and nothing else,” Kagarama said."It will also ensure the integrity of employees within the supply chain. No one will be able to put goods in a container that should not be there. It will secure access to warehouse premises to prevent unauthorised persons from accessing goods.”RRA says this will help fast and efficient transit of goods.Click here for related story