The Electronic Billing Machine (EBM) project coordinator at the Rwanda Revenue Authority, Emmy Mbera said that owners of the shops closed were first trained and advised to use the machines at least twice before their shops are closed.
“This activity was to verify those who issue the EBM-generated receipts and those who don’t issue them to clients and thus avoid paying taxes. Sanctions for traders who don’t offer EBM receipts include the closing of their shops for 30 days,” he said.
One shop owner whose shop was closed in Nyabugogo told IGIHE that traders have already got used to issuing EBM-generated receipts but they sometimes forget to give them to clients due to a big number of clients coming at the same time.
“We usually issue the EBM receipts but sometimes you can forget due to many clients you have. In order to not delay them, you let them go with no EBMs,” he said.
The VAT law stipulates that any person required to use an EBM who sells goods or services without issuing an electronic invoice is liable to an administrative fine of 10 times the value of the evaded VAT.
In case the offense is repeated, the punishment is doubled to a fine of 20 times the value of the evaded VAT.
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