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Declare VAT
If you want to make E-declaration, you should follow all the steps in place.
Preparations
In order to declare VAT you must be registered for this specific tax:
- Record all transactions into annexures. Fill the provided information into documents and then upload when submitting the declaration
- Connect EBM to internet and have access to its back office and E-Tax (Myrra). Information will synchronize.
In case an invoice is not recognized by the system, at the time of uploading purchase annexure, that invoice is automatically recorded and saved in the system and it can be used in the next tax period as the issue is being resolved.
A taxpayer whose annual turnover is equal to or less than FRW 200,000,000, declares the value added tax quarterly within 15 days following the end of each quarter.
A taxpayer whose annual turnover is more than FRW 200,000,000, declares the value added tax monthly within 15 days following the end of the month.
However, a taxpayer whose annual turnover is equal to or less than FRW 200,000,000 and who intends to opt for a monthly value added tax declaration is allowed to do so. VAT filing is mandatory, missing to file leads to penalties
Missing or having trouble with:
Deductions and exemptions
Here you will find the list of goods and services that are zero rated and exempted from value added tax as provided by the law.
When you purchase taxable goods or services, the tax paid is deducted from the total VAT collected from your clients.
Rates, penalties and fines
As stipulated in the Law n° 020/2023 on tax procedures, the following administrative fines are imposed to persons who do not comply with provisions of Value Added Tax:
- If a person carries out business activities without being registered on Value Added Tax while it was so required, he or she is liable to an administrative fine of fifty percent (50%) of the amount of Value Added Tax due for the entire period of operation of the business.
- If a person issues an incorrect Value Added Tax invoice with intention to decrease the amount of Value Added Tax payable or to increase the Value Added Tax input credit, he or she is liable to an administrative fine of one hundred percent (100%) of the amount of the Value Added Tax payable.
- If a non-Value Added Tax registered person issues a VAT invoice, he or she is liable to an administrative fine of one hundred percent (100%) of the Value Added Tax imposed and pays the tax indicated on that invoice.
Noncompliance penalties depend on the following faults: late filing, misuse of EBM, understatement of price, etc.
- 0% of the value of taxable goods or services that are zero-rated as provided for by the Law Nº 049/2023 in its article 7.
- 18% for other goods and services supplied in Rwanda or imported.
- Exempted items.
Tutorials on how to declare VAT
- How to declare VAT via MyRRA