1.What is Electronic Billing Machine?
Electronic Billing Machine comprise of Certified Invoicing System which can be any electronic device
used for issuing invoices that has obtained Authority approval of meeting certification criteria AND
Sales Data Controller which is a receipt processing unit designed to apply special electronic signature
to each invoice making it verifiable by Rwanda Revenue Authority. Depending on the model which supplier
has certified the two components (CIS and SDC) may be separate and connected by cable, or combined into one cabinet.
2.Why is necessary to use Electronic Billing Machine?
It is about one of the most important measures for legalization of gray economy. Citizens will,
thanks to these secure devices, know exactly how much they paid for good or service and tax burden
will be clearly justified. Introduction of this invoicing system will eventually lead to modernization
of Rwanda towards new consumer protection programs and creation of fair competition among all taxpayers.
3.Until when it is necessary to have Electronic Billing Machine?
Rwanda Revenue Authority will issue final dates to the public for each group of businesses
that have to install Electronic Sales Devices. Final dates will represent beginning of system
exploitation for each business group.
4.Where can Electronic Billing Machine be purchased?
Certified Invoicing System and Sales Data Controllers will be sold by together or separately by licensed suppliers and their authorized distributors. Licenses, names, addresses and contact telephone numbers will be announced by Rwanda Revenue Authority. Everybody should wait for announcement in order to avoid being cheated by non-licensed sellers.
5.How much is Electronic Billing Machine going to cost?
Suppliers will offer wide range of products where cost will defer per brand and model
depending on business needs.The continuous cost of operating Electronic Billing Machine will include
consumption of paper for receipts which will depend on the volume and communication charge for SIM card installed in SDC which will not run more than 1000 RWF per month.
6.How Electronic Billing Machine work and how does it differ from regular sales machine?
Difference between regular machine and Electronic Sales Devices is in processing invoices which
can be verified only by Rwanda Revenue Authority. The new system allows user to issue sales
and refund invoice, copy of the invoice, training invoices,pro-forma invoices, all being approved
by Authority at the time of printing. This means ,that business will not suffer lack of functionality and Authority will have means to investigate if suspicious activity is performed by any taxpayer
7.Can non-certified equipment be used, even if it works like certified one?
Non-certified invoicing equipment cannot be used and are treated by Rwanda Revenue Authority as
if there is no invoicing system at all.
8.After buying Electronic Billing Machine, what is the next step?
After purchasing Electronic Billing Machine, authorized seller will notify Authority that
your system is ready to be activated. Activation process is very simple and consists
of Revenue officer verifying the address of your sales location. Sales Data Controller (SDC)
cannot be transferred from one location to another without notification procedure nor leasing it
or using others because of the fact it is certified and belongs to each individual Tax Identification Number.
9.Who is controlling Electronic Billing Machine and how?
Electronic Sales Devices are audited by Rwanda Revenue Authority alone using special
methods like receipt signature verification, remote audit and copying sales data
to electronic media from the Sales Data Controller unit.It is important to know that
issuing receipts is mandatory and enforcement will target those who lack to produce
them regardless if consumer is asking for it or not. In the same manner, enforcement will
be targeting those who attempt to disconnect or cause intentional malfunction to the system.
10.What if Electronic Billing Machine malfunctions?
User is obligated to notify Authority as soon as possible and to have machine repaired
within 48 hours, during which period user must continue issuing hand written VAT receipts.
These receipts will be reentered into the Electronic Billing Machine upon recovery and hand
written copies stored together with certified receipts to avoid double take-ups.
11.What if there is a power failure causing Electronic Billing Machine not to operate?
User is obligated to continue issuing hand written VAT receipts. These receipts will be
reentered into the Electronic Billing Machine upon recovery and hand written copies stored
together with certified receipts to avoid double take-ups.
12.What will Electronic Sales Devices change in existing accounting practice?
Accounting aspect will not change. The additional benefit users will have is access
to Authority’s web portal where a reporting mechanism will be available to consolidate
information from all sales locations equipped with Electronic Sales Devices.
13.How will Electronic Billing Machine issue receipts?
Electronic Billing Machine will make certified receipts uniformly distinguishing each sales item’s taxable and tax amounts. Consecutive receipt number and special signature will be provided by Sales Data Controller and Certified Invoicing System will print and manage the storage of electronic journal.
All items/services sold through Electronic Billing Machine will have clearly defined name and appropriate tax rate assigned to them, therefore exempt items will be registered under exempt (0%) tax rate.
15.Is it allowed to change Electronic Billing Machine if it doesn’t suite business needs?
Yes, one of the great advantages is that user may upgrade or downgrade Certified Invoicing System without involvement of authorized personnel only if Sales Data Controller remains in place.
Sales Data Controller will work with new Certified Invoicing System giving the fact that it is previously listed by the Authority as approved model.
16.If a client requests an invoice for the purpose of claiming VAT,will receipt produced by Electronic Billing Machine be sufficient or should another sales receipt be attached considering also possibility that receipt may fade?
Electronic Billing Machine enables input of client’s TIN on the receipt. If printing mechanism used by Certified Invoicing System (CIS) runs on thermal paper, customer should be advised to make a
photocopy for the purpose of safekeeping. However, receipt which is once printed by Electronic Sales Device is memorized in Sales Data Controller (SDC) and can be retrieved during the audit, therefore printed copy is not the only evidence that sale has occurred.
17.If a taxpayer has regular computer which he is using to print invoices should it be replaced?
Not necessarily, if a software installed on this computer is approved as Certified Invoicing System (CIS), than Sales Data Controller (SDC) can be simply connected to this computer. Therefore a taxpayers must only assure to be using invoicing software approved by the Authority and then purchase Sales Data Controller from an authorized supplier.
18.If Sales Data Controller is broken what is user suppose to do?
In case of technical problems, user must provide an interim solution. The law does not cover incidents that would have effect because there is a fault somewhere. Taxpayer should be aware that it is better to use Electronic Sales Devices than hand written receipts. Authority will always look if receipts are being issued.
19.If client returns the purchase and demands money back, how will Electronic Billing Machine balance the total?
Receipt type refund is available by Electronic Billing Machine, it must be printed at the time of returning the money in order to record a refund. Since the refund is recorded, RRA requests that user duly registers details of the refund into refund log book attaching the original sales receipt based on which refund is claimed, as every refund of tax is subject of justification.
20.What if it is necessary to change location where Electronic Billing Machine is initially installed?
Location of every Electronic Billing Machine is registered with Authority and therefore prior to change of sales location Authority must be notified. This does not apply to portable Electronic Sales Devices registered to operate for companies that conduct sales without permanent address, those are treated as special cases.
21.I already have an invoicing system which is up-to-date and does everything my business needs, do I need to change it completely?
No, however you are advised to check if your vendor is on top of the changes required to obtain approval for Certified Invoicing System (CIS). Once approval for your existing system is obtained, you are required only to connect Sales Data Controller (SDC) to CIS, and you have complete Electronic Billing Machine with minimum investment and without change of your practice.