The Rwanda Revenue Authority (RRA) plans to gradually migrate from hand-held electronic billing machines (EBMs) to a computer-based billing application that it says will improve accuracy and ease revenue collection.
Under the new development dubbed, EBM Phase Two, all traders registered for VAT will be given a free application, which they will use to process and print invoices for every transaction made.
According to Pascal Ruganintwari, the deputy commissioner-general and commissioner for corporate services at RRA, the system will enable the revenue body to track data for sales stock.
“RRA is offering the software free of charge and it will enable businesses to keep, process and assess all transactions. This was not possible with EBMs,” said Mr Ruganintwari.
He added that the system will improve tax compliance and ease the flow of information between traders and customs offices on imported goods.
Since its inception in 2013, the EBMs initiative saw sharp increases in domestic tax collection, but is has faced some challenges in adaptation.
Some 17,700 electronic billing machines have been distributed so far, among the 15,139 traders registered for VAT. This has seen VAT double to Rwf220.2 billion ($260.2m) in 2016 from Rwf110.5 billion ($130.5m) in 2013.
According to RRA officials, the roll out of the new upgraded billing system started in July with large and medium-size importers and traders.