Start-ups should embrace use of electronic billing machines (EBMs) and issuing of customer invoices for products bought as part of the best business practices, the tax body has said.

Drocelle Mukashyaka, the Rwanda Revenue Authority deputy commissioner in charge of taxpayer services, said it is also an offence for any trader not to issue invoices as required by the law. Some businesses have in the past been accused of manipulating the machines to dodge taxes or under declare taxes.

When a taxpayer delays to declare due taxes, they are subjected to a fine of 10 per cent of the tax payable on value added tax. However, failure to issue a VAT invoice attracts 100 per cent of VAT as penalty of the invoice or transaction.

Taxpayers found not using EBMs are fined Rwf20 million (large taxpayers), while medium taxpayers pay Rwf10 million penalty, and the small taxpayers Rwf5 million.

Mukashyaka who was speaking during the training of new taxpayers on Friday, reiterated the need for taxpayers to fill their returns in time, saying it is in their interest and guards against disruptions in case one is found contravening the law. The training at RRA head offices attracted about 700 traders from Kicukiro District on Friday.

It was one of the series of trainings being conducted by the tax body to educate new business owners about taxation.

Bright Turatsinze, a participant, said RRA should conduct regular taxpayer trainings to educate them on new tax policies.

"Most services, like tax declaration, are done online, electronic billing machines (EBMs) and many people are not well equipped on computers.

Ziporah Mujawingo, a pharmacist, said it is important for RRA to set up information centres across the country since "such trainings are not so frequent” and are not attended by all the taxpayers.

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