RRA disburse over Frw184 million in VAT reward to final consumers #rwanda #RwOT

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The rewards are based on invoices requested during the months of October, November, and December 2024.

A Ministerial Order gazetted in March 2024, stipulates that a final consumer, who purchase an item not intended for business, is entitled to a reward of 10% of the VAT amount indicated on the invoice.

To receive the reward, one must be registered under this program by dialing *800# and choosing EBM services or using MyRRA. After registration, the consumer is required to always remind the seller to include their phone number on the invoice issued.

Jean Paulin Uwitonze, Assistant Commissioner for Taxpayer Services and Communications, emphasized that this reward is not a short-term promotion and encouraged everyone to participate, contributing to national development while also benefiting personally.

Since April 2024, about 58,000 people have registered for VAT rewards. Among them, 18,215, who made invoiced purchases in the last third quarter, started receiving their rewards amounting to Frw184.4 billion, since Wednesday.

'Of those registered, more than 43,000 have already requested invoices since this program started in April last year. The total value of invoices requested so far is a substantial Frw97.3 billion, with VAT amounting to nearly Frw15 billion," Uwitonze stated.

Given that the reward is 10% of the VAT paid on these invoices, final consumers have collectively accumulated Frw1.48 billion in rewards.

Uwitonze urged all buyers to consistently request EBM invoices and reminded business owners of their obligation to issue them, warning of penalties for non-compliance.

A consumer, who is denied an invoice for the goods purchased, is urged to report it to the tax administration. In doing so, the affected final consumer receives an additional reward equal to 50% of the penalty imposed on the seller.

To report the trader, who refuses to issue an EBM invoice or provides incorrect one, consumers can send a message to the RRA WhatsApp number 0739008010.

'Infrastructure like roads, schools, hospitals, and security; all these need resources. Everyone should contribute to national development, knowing that sustainable progress comes from our collective efforts towards tax compliance,' Uwitonze added.

Why the received reward might be lower than expected

While consumers continue to receive their rewards, some have noticed that the amount received is lower than the amount displayed in the system, either via *800# or MyRRA.

This may be due to various factors, including the invoices belonging to the ongoing fourth quarter. The reward amount is deposited quarterly to the mobile money or bank account designated by the final consumer after the declaration of VAT.

'Sometimes, a consumer requests an EBM invoice, but the seller does not declare it or pay the corresponding VAT. In such cases, the unpaid VAT is deducted from the reward amount pending further follow up with the taxpayer in question, leading to differences between the expected and received rewards,' Uwitonze explained.

'There could also be ongoing verification before granting the reward on certain invoices, or a seller might have failed to declare some information. This means that the expected reward cannot be disbursed immediately. However, once the taxes are recovered, they are added to the pool of pending rewards and paid out accordingly.'

Some cases have also been reported where rewards were sent but did not reach recipients due to technical issues, requiring reprocessing, he said. In issuing EBM invoices, some sellers also generate invoices and later cancel them falsely claiming they were issued by mistake.

Uwitonze assured that such fraudulent practices would not succeed, as the system tracks all seller activities, including invoice issuance, refunds, and inventory adjustments.

He warned that tax audits could be conducted at any time, and those found engaging in such malpractices would have to correct them and face heavy penalties as provided by the law.

Rwanda Revenue Authority (RRA) has disbursed Frw184.4 million to consumers registered under the Value Added Tax (VAT) Reward program, who exercised their right and duty to request EBM invoices during purchasing.

IGIHE



Source : https://en.igihe.com/news/article/rra-disburse-over-frw184-million-in-vat-reward-to-final-consumers

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