Electronic invoicing guide
Rwanda
Digital reporting requirements
Real Time Reporting
Obligatory
Mandatory for all VAT taxpayers with a turnover higher than FRW 20,000,000 in any twelve-month period, or exceeds FRW 5,000,000 in the preceding quarter. Voluntary for the rest taxpayers.
There are 3 categories of exempt taxpayers:
• Exempt category I includes all non-VAT registered businesses. Such businesses are automatically qualified for exemption.
• Exempt category II includes all VAT registered businesses where the scope of VAT sales is small compared to the company’s total sales.
• Sales that sum up to 75% of the company’s income derived from exempted services, are considered to belong with exempt category II. They must apply for an exemption.
• Exempt category III (three) includes all VAT registered businesses whose sales are only conducted during a limited portion of the year.
However, any such taxpayer may not be exempted if sales are summed to at least 30 invoices during a calendar year. Such businesses need to apply for exemption.
Authority
Rwanda Revenue Authority
Platform
Electronic Invoicing System (EIS)
Format
Storage time
Reporting and processes
Taxpayers must comply with one of the five methods available for generating electronic invoices.
The systems, referred to as EBM (Electronic Billing Machine), are:
• E-invoicing software: a software system that is installed in the taxpayer’s computer. It is designed specifically for large and medium enterprises.
• Electronic invoicing mobile system: a smartphone app that will issue an invoice via SMS containing the required content and a link to invoice details. This method is available exclusively for taxpayers with an annual turnover of less than FRW 20 million (ca EUR 16435.00) a year.
• Online e-invoicing solution: an internet-based solution that allows taxpayers to issue invoices. Eligible for taxpayers from the service sector whose annual turnover does not exceed FRW 20 million and who do not issue invoices regularly.
• Online Sales Data Controller: designed for taxpayers who use their own invoicing software systems and are willing to send e-invoices through the internet. Such systems will require integration with Rwanda Revenue Authority (RRA), for which a request will have to be sent at [email protected]
• Virtual Sales Data Controller: a system that is like the Online Sales Data Controller. The only difference is that it also operates offline. This system needs integration with RRA as well, which is done by sending a request to the RRA e-mail address mentioned above.
Upcoming legislative changes
For the time being, no legislative changes are foreseen.
Links of Interest and documents
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