Mandatory e-Invoicing in Rwanda: Electronic Invoicing System (EIS)
The electronic invoicing system in Rwanda is called Electronic Invoicing System (EIS) and came into force on January 1, 2021. It consists of several methods (Electronic Billing Machines) to generate certified invoices and send real-time data to the RRA (Rwanda Revenue Authority) via API.
The Electronic Billing Machines must be used to produce EIS invoices for each sales transaction, both to other businesses and to final consumers. Registered taxpayers engaged in sales transactions are required to issue EIS/EBM invoices at their sales locations. The process for using EBMs consists of entering the quantity, price, and code of each item being sold. The taxpayer must then print the invoice, give it to the consumer and keep a duplicate invoice.
A taxpayer must register for VAT purposes if its turnover exceeds FRW 20,000,000 in any twelve-month period, or exceeds FRW 5,000,000 in the preceding quarter. In addition, any taxpayer may elect to register for VAT purposes.
Electronic Billing Machine (EBM) systems to generate electronic invoices
In May 2021, the Rwandan tax authority informed taxpayers that they must comply with one of the five methods available for generating electronic invoices. The systems, referred to as EBM (Electronic Billing Machine), are as follows:
- E-invoicing software: a software system that is installed in the taxpayer’s computer. It is designed specifically for large and medium enterprises.
- Electronic invoicing mobile system: a smartphone app that will issue an invoice via SMS containing the required content and a link to invoice details. This method is available exclusively for taxpayers with an annual turnover of less than FRW 20 million (ca EUR 16435.00) a year.
- Online e-invoicing solution: an internet-based solution that allows taxpayers to issue invoices. Eligible for taxpayers from the service sector whose annual turnover does not exceed FRW 20 million and who do not issue invoices regularly.
- Online Sales Data Controller: designed for taxpayers who use their own invoicing software systems and are willing to send e-invoices through the internet. Such systems will require integration with Rwanda Revenue Authority (RRA), for which a request will have to be sent at firstname.lastname@example.org
- Virtual Sales Data Controller: a system that is like the Online Sales Data Controller. The only difference is that it also operates offline. This system needs integration with RRA as well, which is done by sending a request to the RRA e-mail address mentioned above.