The rwanda Revenue Authority (RRA) has launched the first phase of the value added tax (VAT) electronic billing scheme, saying it was a major step towards combating tax evasion and corruption.Drocella Mukashyaka, the director of taxpayer services department, also noted that the initiative would ease VAT billing, promote fair competition and safeguard tax information.The Rwanda Revenues Authority has already given out 480 e-billing machines to selected VAT registered taxpayers for the first phase. The move is also intended to use new technologies to ease tax administration and collection.Mukashyaka said the e-tax machines record every transaction and then ensures the data is verifiable by revenue authority auditors, making it easy to immediately detect any falsification of tax data.Niyonsenga Jean Claude, a wholesaler at the Kigali Commercial Centre, told The New Times that the machine records every item sold or service rendered and transmits the information to RRA database.The move has thrilled shoppers, especially those who like to keep records for future accountability or planning.“In the past, I would buy goods but traders didn’t have receipts. However, with e-billing, the machine prints out the receipt automatically,” said Sarah Ingabire, a shopper in Kigali. Alphonse Ntawukuriryayo, the Nice and Clean Household proprietor, said e-billing would reduce the massive tax documents, which “sometimes delayed verification by revenues auditors.” “To qualify for a VAT refund, you are required to have your tax data verified. Besides, taxpayers will have credible documents because we will be having information on every taxpayer,” said Mukashyaka.Jacqueline Mukamana, a business woman in Remera, however, said the system does not offer an alternative billing mechanism, especially when there is no electricity or the device has technical problems. Mukashyaka advised traders to use manual billing method and then enter the information into the system later in case the system develops problems. But the problem must be reported to the tax body, she added.
