Rwanda Revenue Authority (RRA) has started a crackdown of businesses not using the electronic invoicing system, commonly known as the Electronic Billing Machine (EBM), designed to facilitate business control and issuance of electronic invoices. In Rubavu town, like elsewhere in the country, the tax body is inspecting to ensure all businesses comply with the law. ALSO READ: Risk of closure looms for businesses without EBMs in Rubavu According to RRA, the new initiative, which is part of a campaign to ensure that businesses use the electronic invoicing system was launched in August. Jean-Paulin Uwitonze, the Assistant Commissioner in Charge of Taxpayer Services and Communications Division at RRA, said the move comes after studies showed that there are businesses that are non-compliant to EBM usage, something that is contrary to tax law. EBM usage became compulsory for all traders in 2020. Speaking to The New Times, Uwitonze noted that currently, a businessperson with a computer, a smart phone, or tablet, can easily use the electronic invoicing system. “It is mandatory for all traders to use EBM as per the 2018 tax law. Though a certain number of businesses appreciated the adoption of EBM for financial management and professionalism in doing business, some don't understand it,” he stated. We noticed some business people ignoring issuing EMB bills, then we decided to increase efforts to mobilise such groups who are resistant, spreading speculation within their colleagues that it charges extra tax, along with punishment, something you may have seen in Rubavu and other places in Nyagatare, Rusizi, and parts of Kigali. According to him, there should be no excuses that “there are some business people who have limited skills on how to use EBM” because “we found some people issuing five bills and then they stop. We punish them because they ignore it intentionally, though there are new business people with limited knowledge on it,” he added. For Mayor of Rubavu District, Prosper Mulindwa, noted that the malpractice of not using EBM is challenge to the district. It is a problem that needs more efforts to raise awareness of traders but also consumers, that it is beneficial for both of them as well. So, we keep mobilising people, showing them the importance of requesting EBM from traders, whether it is direct or indirect, said Mulindwa. My business is small; worth not more than Rwf200,000. How should I provide EBM? I will keep running away when they [RRA] come, said Jeanne Ayinkamiye (real name withheld), a shopkeeper in Byahi Cell, Rubavu Sector, a suburb of Rubavu town. Statistics from RRA show that there are 14,125 taxpayers in Rubavu District where the adoption rate of EMB stands at 24.3 percent. As of now, the tax authority registered 405,072 taxpayers, of whom 109,034 adopted the EBM and only 78,329 are users. ALSO: RRA launches nationwide campaign to promote EBM usage The law on tax procedures provides that a person registered for VAT who sells goods or services without using an electronic invoicing system is liable to an administrative fine of 10 times the value of the evaded VAT. In case the act is repeated within two years, the defaulter is liable to an administrative fine that is 20 times the value of the evaded tax.
