Electronic Billing Machine (EBM)

Electronic Billing Machine (EBM)
The VAT law No. 37/2012 of 09/11/2012, article 24 obliges all VAT registered taxpayers in
Rwanda to acquire and use EBM to issue tax invoices to their customers on every transaction
they make. Failure to comply is a tax crime that attracts penalties.
Any business that carried out taxable activities exceeding a turnover of Rwf20m in the previous
fiscal year or Rwf5m in the last quarter is required to register for VAT within a period of seven
(7) days from the end of that year or quarter.
Also, motivated by the nature of business or for voluntary reasons, businesses below the above
mentioned turnover may register for VAT.
The use of EBM, which is in force in Rwanda since 2013 is not a new form of tax but a
simplified and accurate method of collecting VAT.
This system is meant to deal with evasion of VAT, help businesses to keep proper records,
enhance revenue protection and protect honest taxpayers from unfair competition.
It also helps you to reduce the operative and administrative burdens of a business, while
ensuring the highest security standards for safekeeping your tax information.
Users of an EBM are subject to the following main obligations:
1. To purchase a certified set of Electronic Billing Machine from a licensed supplier
2. To install a certified Electronic Billing Machine at the sales location
3. To issue a receipt printed from EBM to every customer who purchases items or pays for
a service; regardless whether the customer requires or rejects to take it
4. To ensure that the EBM is placed where it is accessible and visible to customers
5. To ensure that all items or services sold through EBM have a clearly defined name and
appropriate tax rate
6. To post a visible notice with the following information where the EBM is installed:
a. Name of the Taxpayer (user), Address and the Tax Identification Number (TIN)
b. Machine registration code
c. Sales data controller (SDC) serial number
d. A statement “DO NOT PAY IF A RECEIPT IS NOT ISSUED”
7. To keep copies of invoices printed by the certified Electronic Billing Machine for ten
(10) years
8. To ensure that the EBM user manual is received at the time of purchase of EBM
9. To report to RRA of a change/s in sales location through the procedures determined by
the Commissioner General
10. To report to RRA malfunctions of the EBM within six (6) hours
11. To keep the sales data controller (SDC) in Rwanda while it is working or not working.
12. To have a valid purchase contract for the EBM from an authorized supplier
13. To report to RRA about replacement of EBM in twelve (12) days after it is replaced or
removed from the registered sales outlet for any reason
14. To submit a request to RRA de-activate the EBM in case of cessation of business activity
15. To issue invoices written by hand in two specimens in case there is no certified Electronic
Billing Machine functioning properly at the sales location and keep for at least ten (10) years
the second specimen of a handwritten invoice together with original certified receipt printed
after the certified Electronic Billing Machine is recovered.
16. To make a certified refund receipt printed by EBM and keep the document relating to the
refund in accordance with refund procedures determined by Commissioner General’s
instructions;
17. To notify RRA in writing about cessation of EBM operation in twelve (12) hours due to
theft or damage by force majeure and this notification is accompanied by a copy of report from
the Rwanda National Police.
18. If there is a failure of EBM, a taxpayer must purchase a new one within eight (8) working
days.
Punishable Acts and Penalties to avoid:
S/N PUNISHABLE ACTS PENALTIES

Any person required to use EBM but sells
Administrative fine of ten (10) times the value of
1. goods or services without issuing an
the evaded VAT
electronic invoice
Administrative fine of twenty (20) times the value
2. In case he/she is a second time offender
of the evaded VAT
Any person who fails to comply with other Administrative fine of two hundred thousand
3.
EBM users obligations Rwandan francs (FRW 200,000)
In case of repetition of noncompliance with Administrative fine of four hundred thousand
4.
other EBM users obligations Rwandan francs (FRW 400,000)
Any person who issues underpriced EBM Administrative fine of ten (10) times the value of
5.
invoice/s the evaded VAT
In case that person repeats the offence of Administrative fine of twenty (20) times the value
6.
giving underpriced EBM invoices of the evaded value added tax
Additional penalties include the closure of business activities for a period of thirty (30) days,
7. being barred from bidding for public tenders; withdrawal of a business register and being
published in nationwide newspapers
For more information on this and other tax matters please contact us
on: [email protected], Twitter: @rrainfo Facebook: Rwanda Revenue Authority,
Instagram: rwandarevenue, Toll Free: 3004

Electronic Billing Machine (EBM)

Uploaded by

Copyright:

Available Formats

Electronic Billing Machine (EBM)

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Electronic Billing Machine (EBM)

Uploaded by

Copyright:

Available Formats

Electronic Billing Machine (EBM)

Users of an EBM are subject to the following main obligations:

1. To purchase a certified set of Electronic Billing Machine from a licensed supplier

2. To install a certified Electronic Billing Machine at the sales location

b. Machine registration code

c. Sales data controller (SDC) serial number

d. A statement “DO NOT PAY IF A RECEIPT IS NOT ISSUED”

Punishable Acts and Penalties to avoid:

S/N PUNISHABLE ACTS PENALTIES

You might also like