Value added tax is commonly known as VAT or VAT.

VAT has a law (Law No. 02/2015 of 25/02/2015 reinforced by another law No. 37/2012 of 09/11/2012 that determines VAT) that determines it and is the responsibility of the merchant (Entrepreneur) ) to register.

Although VAT is mandatory not every trader must be registered. There are requirements for a trader to register for VAT.

Registration

Companies are required to register for value added tax if they have sales exceeding twenty million Rwandan francs (20,000,000 FRW) in a 12-month period or five million in three consecutive months in the last quarter of the year.

Where do you pay VAT?

The final consumer is the one who pays the tax instead of the registrant for collection and accounting purposes and paying the VAT to the RRA.

What are the responsibilities of a registered taxpayer for VAT?

Articles from 57 to 63 provide for the rights and obligations of the registered taxpayer for VAT including the following:

Posting the tax registration certificate in a prominent place where customers enter the place of business.
Issue VAT receipts to customers whenever they purchase goods and services.
Fill out the VAT return every quarter on the appropriate form
Be available at all times to receive VAT staff and provide them with accounting books that reflect the activities of the company.
The use of electronic technology is allowed in the issuance of invoices.

If you have any questions about your taxes, you can call the National Tax Office on toll-free number 3004.

This story was collected and published by Pacific Cup