Register for VAT

A VAT-registered taxpayer has the following obligations:

1. Must display the  VAT registration certificate in a plain view at the entrance of his place of business for his client to see.
2. Must issue an electronic invoicing system(EIS) to his customers every time they buy goods or services.
3. Must file a monthly or quarterly VAT return on the appropriate form (UNG11).
4. Must be available at all times to receive VAT officers and present official books of accounts.
5. Must use an Electronic Billing Machine in issuing invoice

There are times when a taxpayer pays more than what he/she is required to pay. The refund concept refers to the VAT paid by taxpayer on purchases (VAT inputs tax ) which exceeds the VAT collected by taxpayer on sales (VAT output tax). Below is the scale of automatic refund:

1.For Large Taxpayers. When the amount to be refunded is less than Frw 5,000,000, the taxpayer shall deduct that amount during the next filing period;
2.For Medium Taxpayers. When the amount to be refunded is less than Frw 2,000,000, the taxpayer shall deduct that amount during the next filing period;
3.For Small Taxpayers. When the amount to be refunded is less than Frw 500,000, the taxpayer shall deduct that amount during the next filing period.

If the VAT refund claimed is a larger than these thresholds, RRA will audit the refund and may contact the taxpayer for further evidence. If the refund is correct and accurate, RRA will deposit the approved refund amount on the bank account provided by taxpayer.

Privileged persons, exempted such as diplomats, Embassies, projects funded by international organizations that have signed agreements with Rwanda and Non-Governmental Organizations that have a convention with the Government of Rwanda of not paying taxes are refunded the VAT charges on local purchases.

RRA has designed a form to ¨ll by indicating the address, bank details and the amount to claim. The existing purchase annexure also has to be downloaded, filled and uploaded so that the system can check if the invoices being claimed are genuine.

When an individual/taxpayer receives a tender from organizations/institutions that are exempted from paying VAT, s/he deducts the VAT as provided for by the law then thereafter files in refund request for VAT from Rwanda Revenue Authority.

A supplier of public institutions and some private taxpayers must withhold VAT and remit it to the Tax administration. The Supplier deducts this VAT withheld on declaration.

The request for VAT refund is submitted through E-tax system.

A taxpayer who completely ceases to operate, has the right to apply for VAT de-registration of his/her business via E-tax system.