EBM Campaign in Universties extended in IPB
Rwanda Revenue Authority fed knowledge to students in Institut Polytechnique de Byumba (IPB) about the role of eElectronic Billing Machines (EBM) in improving tax compliance. This function is part of the EBM awareness campaign in Universities which targets higher learning students and lectures with the Aim of promoting the use of EBM.
Father Dr Hakizimana Lucien, the Director of Quality Assurance at IPB said this campaign came on time because many of the students and lectures had little knowledge about EBM and had no culture of asking for invoices at every purchase.
Invoice in business transactions is considered as an agreement between client and seller and the legal proof of purchase and sales. EBMs have been introduced in 2013 to replace the old manual invoicing system which had many limitations including forgery of invoices, double sales invoice books and audits taking long and the manual invoices were easily destroyable by water and any other disaster.
Electronic billing machines are IT based devices made up of CIS (Certified Invoicing System) and SDC ( Sales Data controller), and are equipped with memories capable of recording and safely keeping all information related to business transaction, they are a solution to the limitations of the old system.
Electronic Billing Machines are beneficial to the business people because it helps them in stock management and data are safely kept, they are particularly important for the Tax administration because the EBM invoices clearly shows the Value Added Tax received by VAT registered taxpayers.
VAT rate is 18% of the selling price and is paid by the last consumer on goods and services with added value. VAT is collected by VAT registered business people on behalf of RRA.
In this lecture, the students and lecturers were encouraged to be the first people to ask for invoices at every purchase they make because it is the only way to insure that VAT tax paid will reach the National Treasury.
Uwimana Sarah, a Level 5 student in Social Science at IPB said that this campaign added important knowledge to her as far as EBM are concerned, “I used to think negatively of these EBM because business people complained about them, now I understand their importance in the collection of VAT that we all pay, and I will even encourage my friends to be asking for EBM invoices as they purchase”
EBM contributed the increase of over 6.5% in VAT collection and is likely to keep augmenting as the culture of asking for EBM invoices raise.