The law establishing the DST was passed in February 2025 and applies to services originating outside Rwanda. Jean Paulin Uwitonze, RRA's Deputy Commissioner for Taxpayer Services and Communications, confirmed that the tax will take effect at the start of the 2026 fiscal year.
'From 2026, digital services tax will be collected. It will cover online businesses such as Airbnb, Netflix, Amazon, and others. They will be required to pay tax on the services they provide in Rwanda, based on the revenues they generate,' Uwitonze said.
He added that RRA is finalising preparations to ensure a smooth rollout of the tax.
Tourism accommodation tax already in effect
In addition to the DST, a tourism accommodation tax introduced in February 2025 came into force on July 1, 2025. It is charged at a rate of 3% of the amount paid or payable for accommodation, excluding value-added tax (VAT).
The law requires accommodation providers, including hotels, lodges, apartments, motels, and Airbnb hosts, to register with RRA, collect the tax from clients, and remit it monthly.
According to RRA, taxpayers have largely complied since collections began on August 15, 2025.
'The tax is collected every month. For example, a business collects it from the 1st to the 30th of a given month and submits it to RRA no later than the 15th of the following month,' Uwitonze explained.
Crackdown on non-compliance
RRA has also warned businesses attempting to evade taxes. Uwitonze said the authority is working with partners, including buyers and the Electronic Billing Machine (EBM) system, to identify and penalise defaulters.
'Those who do not want to pay will be caught quickly. We can detect all unpaid taxes and ensure compliance,' he said.
IGIHE
Source : https://en.igihe.com/news/article/rwanda-to-begin-taxing-netflix-and-amazon-in-2026
