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Tax advisors delight with VAT input validation controls

Tax advisors expressed their satisfaction regarding the newly launched VAT input validation controls, a system which generates automatic appreciation or refutation of valued added tax declaration. The system verifies important domestic tax and customs information on declaration annexure of VAT and generates immediate response once the declaration is sent. Declarations are made within 15 days after the month VAT was collected. According to Emmy Mbera, EBM project coordinator, the input VAT validation controls is a solution to problems caused by EBM fraudsters. 25 companies are now blacklisted due to using fictitious invoices, whereby they used to print EBM receipts without exchange of goods or services, with the intention to claim input VAT, neutralize payable VAT or tax evasion. With this system, the information on the receipt must be genuine to be accepted. This is a kind of automatic audit from the tax administration, means claiming a false invoice can never be accepted, instead, it would indicate the fraudulent attempt and therefore help the revenue enforcement and investigation to map the tax law breakers. Deputy Commissioner for small and medium taxpayers stated also that the system helps processing and quickening VAT refund to taxpayers as it helps doing a desk audit contrary to auditing processes which took time and cause delays in refunding VAT. Donation Nsengiyumva, a 6-year experienced tax advisor expressed his satisfaction of his career as they contribute to the revenue collection by helping taxpayers to comply with tax obligations. He also indicated that VAT input validation controls system help them avoid mistakes as it leads them in their declaration. “It leads you and rejects false information,” he pointed out. On top of making VAT declaration efficient and effective, Nsengiyumva also appreciated that the system provides a quick audit and help them claim quickly VAT refund and differentiate professional tax advisors and impostors. Nsengiyumva said: ‘In order to be a professional, you need to have integrity and have knowledge of taxes. There are people who register to be tax advisors with intention of becoming quickly rich, they follow what the business person tell them because they are their boss instead of following the law. Professional tax advisory is about abiding by tax law not the will of the taxpayer.”

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