Organization : Rwanda Revenue Authority
Type of Facility : Electronic Billing Machine
Country: Rwanda
Website : https://www.rra.gov.rw/ahabanza
Electronic Billing Machine :
Rwanda has decided to introduce legislation which will help businesses to keep their books properly and protect honest taxpayers from unfair competition. New law is specifically designed to stop tax evasion, which is troubling even the richest countries around the world.
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Rwanda Revenue Authority will publish every certified model and version of CIS and SDC upon its certification.
We are not the only country introducing technology to combat tax evasion as Sweden, Germany, Greece, Ethiopia, Kenya and almost 50 other countries around the world have already done something similar. Differences between all jurisdictions are in technical specification and system implementation method which either allows users to adopt or replace their existing invoicing system.
In our continuance effort to provide improved and modern services to our taxpayers, the new legislation is designed with enough flexibility to reduce operative and administrative burdens, while still the highest security standards are in place for safekeeping your tax information.
Introduction :
An Electronic Billing Machine comprises of two components, a Certified Invoicing System (CIS) and a Sales Data Controller (SDC). If business doesn’t have Electronic Billing Machine in place by the announced deadline, it could face a substantial fine.
Upon the public announcement, every business registered for VAT will have to provide a customer with a special receipt issued through Electronic Billing Machine for every sold good or service.
The groups of taxpayers which must have a special devices installed on its premises to record every sale will be announced by Public Notice, as installation will be carried out in phases.
By end of each phase, the law will apply to every newly business registered for VAT in Rwanda.
What is the purpose of EBM?:
Besides combating tax evasion and corruption, Electronic Billing Machine will provide a market balance and make equal business opportunities for every entrepreneur.
Rwanda Revenue Authority knows that most businesses are not paying its full taxes and to prove that fact auditors often spend countless hours investigating and going over massive documentation which causes disruption in operations of both honest taxpayers and those who evade tax on purpose. Thanks to this affordable technology VAT paid by the citizens and businesses will be instantly recorded and the audit itself will become much simpler.
Our ambition to increase budget goes to the benefit of all citizens who will eventually enjoy better social programs, and the money for that will be coming from your VAT.
How does Electronic Billing Machine work?:
Sales Data Controller (SDC) records every transaction received from Certified Invoicing System (CIS), and then ensures that electronic signature on the receipt is printed. The signature is verifiable by RRA officers using a special decryption tool which is unique for every installed SDC device, therefore any falsification of the signature can be immediately detected.
The SDC itself was carefully designed to be secure and tamper-proof. Rwanda Revenue Authority auditors can access any SDC and quickly detect missing taxes.
Electronic Billing Machine are designed to suite every business environment. If taxpayer already own invoice processing equipment, they must make sure if their system is compatible with requirements, as soon as possible. Asking a vendor about the compatibility is the first step. The requirements and the testing method is provided by RRA.
The Sales Data Controller (SDC) is a small electronic device that sits at the heart of the taxpayer’s financial system. Options for its installation depend on the brand and models offered by suppliers. RRA advises all users to read information published on each certificate before procuring equipment, as difference exist in specific options each model has to offer.
How to look for Electronic Billing Machine?:
Rwanda Revenue Authority will publish every certified model and version of CIS and SDC upon its certification.
Taxpayers must be aware not buy equipment from those who claim to be certified, instead always look at the source of information. If taxpayer is still not sure who is authorized supplier, our call center will provide consultations, just dial 3004.
View Comments (1)
I would like to know when electronic billing machine will be started using in east African countries?