RRA to Install Invoice Devices at all Businesses

The Commissioner General of Rwanda Revenue Authority, Ben Kagarama said the tax body will establish a new tax assessment system in May.

The system includes electronic devices that will be freely distributed to the businessmen. 500 invoice devices will be freely distributed to the business premises effective May.

“The devices have already been used across the world including neighbours; Tanzania and Kenya have similar system in use,” Kagarama said.

Kagarama told press Friday that some business people are fond of tax evasion especially value added tax. The new system will facilitate both RRA and business people in accomplishing their duties.

RRA will be able to remote control daily activities of the businesses through the information delivered by the device.

Kagarama explained, “We have established special approaches of facilitations to the businesses in Rwanda; this is why in May we’re coming up with a new system that will enable us to evaluate the VAT payment.”

The device will be installed inside shops and other business consigns. Information recorded by the device will be directly transferred to the RRA receiver. “We will freely distribute the devices to businesses premises and train them how to use them,” Kagarama noted.

Kagarama said the first free 500 devices will be distributed in May.

He assured that there will be no concern with challenges RRA has already observed the practice and its impacts from other countries. RRA is ready for all sorts of inconveniences arising from the use of the devices.

He noted that some businessmen lose invoices after they pay-this is a problem to assessment of tax payment. Businessmen normally used to declare only the number of the invoices on which they pay the tax, which was very risky.

Businessmen will be able to distantly control their business and have the factual information. Those that will be given the device first are classified in high risky category of forgery.

The RRA has also established severe penalty to businessmen who will either try to operate outside the system or abuse the device to dodge the tax.

According to Kagarama, the new system is the complement to the previous one established in February where the payment and declaration is done online (internet).