Rwanda Vat

---
name: rwanda-vat
description: "Rwanda VAT for 2026: 18% and 0%, registration at FRW 20 million or FRW 5 million in three months, quarterly filing at or below FRW 200 million, foreign services, EIS invoices under the September 2026 order, online supplies under the April 2026 order, the end of the industrial exemption and the VAT deferral facility, and how to file in E-Tax."
license: "AGPL-3.0-or-later (code) / OpenAccountants Guide License v1.0 (content)"
metadata:
  source: openaccountants
  openaccountants_url: "https://www.openaccountants.com/skills/rwanda-vat"
  jurisdiction: "RW"
  tax_year: "2026"
  last_updated: "2026-11-01"
---

# Rwanda VAT v2.1

Tax year 2026. Law 049/2023 as amended by Law 009/2025.

## Who this applies to

Anyone making taxable supplies in Rwanda, importers, public bodies that withhold VAT (art 5), buyers of foreign services (art 14), and from 2026 non-resident online suppliers (Order 004). Registration: over FRW 20,000,000 in 12 months or FRW 5,000,000 in three consecutive months, within 7 days; voluntary registration is open (https://www.rra.gov.rw/en/domestic-tax-services/value-added-tax/default-title-1).

## Rates, bands and thresholds

| Item | Amount | Tax year | Official URL |
|---|---|---|---|
| Standard rate | 18% | 2026 | https://www.rra.gov.rw/en/domestic-tax-services/value-added-tax/penalties-and-interest |
| Zero rate | 0% on art 7 supplies | 2026 | same |
| Registration, 12 months | Over FRW 20,000,000 | 2026 | https://www.rra.gov.rw/en/domestic-tax-services/value-added-tax/default-title-1 |
| Registration, 3 consecutive months | FRW 5,000,000 | 2026 | same |
| Quarterly filing | Annual turnover at or below FRW 200,000,000; may opt monthly (art 28) | 2026 | https://www.rra.gov.rw/fileadmin/user_upload/VAT_Law_of_2023_ok.pdf |
| Non-deductible share of inseparable costs | 40% of the VAT (art 20) | 2026 | same |
| Late input claim window | 12 months with documents (art 17) | 2026 | same |
| Refund time | 30 days from the day after declaration, or after audit report (art 26) | 2026 | same |
| Carry-forward instead of refund | Under FRW 5,000,000 large, FRW 2,000,000 medium, FRW 500,000 small | 2026 | https://www.rra.gov.rw/en/domestic-tax-services/value-added-tax/default-title-1 |
| Machinery, capital assets, industrial raw materials | Exempt only until 30 June 2026 | 2026 | https://www.minijust.gov.rw/index.php?eID=dumpFile&f=130496&t=f&token=[REDACTED] |
| Energy equipment; imported pure electric vehicles, batteries, chargers | Exempt until 30 June 2028 | 2026 | same |
| VAT deferral, per consignment | Import VAT of at least FRW 10,000,000 | 2026 | https://www.rra.gov.rw/fileadmin/Folder_for_2025/CG__s_Guidelines_For_Implementation_of_VAT-July_2026.pdf |
| Consumer refund of VAT on online purchase | Claim within 60 days (Order 004 art 7) | 2026 | https://www.rra.gov.rw/fileadmin/Folder_for_2025/Ministerial_Order_VAT_on_Online_Services_April_2026.pdf |

## The base

**Taxable.** All goods supplied in Rwanda except exempt; services where both parties are resident, or the recipient is resident and benefits in Rwanda, or the provider is resident and the recipient benefits in Rwanda (art 6). Tax point: earliest of invoice, payment, removal or delivery of goods, delivery of service, or deregistration application (art 12).

**Zero-rated (art 7).** Exports of goods and services, minerals sold domestically, international transport of goods into Rwanda and transit, commission on all-inclusive tour booking, duty-free shops, security organ shops, diplomats, agreement organisations and funded projects, locally assembled electric and hybrid vehicles, batteries and chargers.

**Exempt (art 8 as replaced by Law 009/2025).** Non-profit water supply and environmental services, except sewage pump-out; health services, disability equipment, listed pharmaceuticals, sanitary pads; listed educational items, books, newspapers, journals; passenger land transport in vehicles of 14 persons or more, air passenger transport, boat transport, household waste transport; sale or lease of land; sale of residential buildings; residential renting over 90 days; lease of movables by licensed financial institutions; financial and insurance services listed by Order 001/25; funeral items; listed energy equipment; unprocessed farm and livestock products, plus processed maize, rice and milk other than powder and milk derivatives; agricultural insurance; listed farm inputs; gaming; returning nationals' effects; zone user imports for special economic zones; defence goods; aircraft on the list; business transfers between related residents; securitisation.

Since Law 009/2025, fuel and road transport of goods are taxable. Fee-based financial services outside the Order are taxable.

**Input tax.** Credit needs a VAT invoice or customs proof (art 19) and the output tax having been paid (art 17). Personal use is denied. Mixed use is apportioned (art 17). Denied (art 20): passenger vehicles with parts and repairs unless the business sells or rents them or is a driving school; entertainment unless it is the business; accommodation unless the business or staff away from home; 40% of the VAT on inseparable costs. New registrants claim on stock in the first return (art 18).

**Foreign services (art 14).** Output tax is always due on the return for the period of delivery. Input is allowed only where the service is not available in Rwanda and the Minister authorised it. So it is not always net zero, as our earlier file said. The Handbook describes the tab as applying to services unavailable locally; the law's art 14(1) has no such limit and wins.

**Online supplies (Order 004, 2026).** Non-residents supplying customers in Rwanda register or appoint a representative. If unregistered, the bank facilitating payment withholds the VAT and files by the 15th of the next month. Registered suppliers file by the 15th after the period. Art 3 lists software, ride-hailing and marketplace platforms, online gaming, search, data sales, journals, streaming, hosting and more.

**Invoices (Order 006, in force September 2026).** The electronic invoicing system (EIS) replaces the 2013 EBM order. Rules: system at the sales point, notice with TIN and SDC serial, "do not pay if an invoice is not issued", buyer-initiated invoices must be approved, ERPs must integrate. Those not filing annual income tax need not issue on each sale but must approve buyer-initiated invoices (art 8). Adjustment and cancellation: Order 004 arts 10-22, via the RRA portal; cancel before the end of the tax period (art 19); adjust once.

**Deferral (July 2026).** After the exemption ended, manufacturing, mining, mineral exploration and gas extraction taxpayers may defer import VAT on Chapter 84 and 85 machinery, excluding passenger vehicles, office items, consumables and spares unless approved. Test: 90% of turnover taxable, or 80% exports, or new investor conditions, 12 months compliance, no arrears. Apply to the Commissioner for Customs Services before arrival. Declare in the monthly return following release.

### Carried: Required inputs and refusal catalogue

**Minimum viable**: bank statement. Acceptable from BK (Bank of Kigali), I&M Bank Rwanda, Equity Bank RW, BPR, Access Bank RW, or any Rwandan bank.

### Carried: Supplier pattern library

**Supplier pattern library**

| Pattern | Treatment | Notes |
| --- | --- | --- |
| BK, BANK OF KIGALI | EXCLUDE | Exempt financial |
| I&M RWANDA, I&M BANK RW | EXCLUDE | Same |
| EQUITY BANK RW, BPR | EXCLUDE | Same |
| RRA, RWANDA REVENUE | EXCLUDE | Tax payment |
| CUSTOMS | Check for import VAT |  |
| RSSB | EXCLUDE | Social security |
| REG, EUCL | Domestic 18% | Electricity |
| WASAC | Domestic 18% | Water |
| MTN RW, AIRTEL RW | Domestic 18% | Telecoms |
| GOOGLE, MICROSOFT, AWS | Reverse charge 18% | Non-resident |

## Deadlines and filing

| Period | Due |
|---|---|
| Monthly | 15 days after month end |
| Quarterly | 15 April, 15 July, 15 October, 15 January (https://www.rra.gov.rw/fileadmin/user_upload/13.1.23_OG_n___Special_of_11.01.2023_Kumenyekanisha_no_kwishyura_umusoro_ku_bihembo_n_umusoro_ku_nyongeragaciro_ku_gihembwe.pdf). Opting monthly is written notice, irrevocable for two years. |

File even with no sales or a nil result (art 28). Pay by the same date (art 29). Import VAT is due at the customs point.

### How to file

1. Connect the EBM or EIS to the internet so back office data syncs with E-Tax (https://www.rra.gov.rw/en/domestic-tax-services/value-added-tax/penalties-and-interest).
2. Log in at https://etax.rra.gov.rw.
3. Annexure Downloads, VAT. Enable content in VatAnnexure. Tabs: Sales, Purchases, VAT Importation, Deductible VAT Reverse, VAT Retained.
4. Sales: buyer TIN, name, nature, invoice number, date, total ex VAT, exempt, zero-rated, exports, taxable, VAT. Exports go in the Exports column, not zero-rated.
5. VAT Importation: customs station, DD COM number, date, nature, origin, CIF, VAT paid from V02 on the customs declaration.
6. Deductible VAT Reverse: foreign supplier, invoice, amount, VAT at 18%. VAT Retained: public body TIN and amount withheld.
7. Validate and save each tab, then fill the declaration. Totals must equal the annexures.
8. Tick the certifying box, submit, and pay against the RRA Reference Number on the receipt.

An invoice not recognised on purchase upload is saved for the next period. Steps from https://www.rra.gov.rw/fileadmin/Folder_for_2025/RRA_Tax_Handbook_2025_Final.pdf.

## Penalties and interest

| Fault | Consequence | Source |
|---|---|---|
| Late declaration, fixed fine (Law 020/2023 art 81) | FRW 50,000 for a non-commercial person or turnover over FRW 2,000,000 up to FRW 20,000,000; FRW 300,000 for a public institution or non-profit with turnover over FRW 20,000,000; FRW 500,000 for a notified large taxpayer | https://www.rra.gov.rw/fileadmin/user_upload/OG_n___Special_ter_of_31.03.2023_Uburyo_bw_isoresha_Tax_procedures_01.pdf |
| Repeat fault within 2 years | Fine doubled; third time, four times | same |
| Certified statements not filed when required | FRW 500,000 every month until filed | same |
| Late declaration and payment (art 82) | 20% of tax up to 30 days, 40% from day 31 to 60, 60% after 60 days | same |
| Declared on time, paid late (art 82) | 5% up to 30 days, 10% from day 31 to 60, 30% after 60 days | same |
| Understatement of 10% to 20% (art 83) | 10% of the understatement; doubles above 20%; none if corrected and paid before notice of audit, but art 82 fines apply | same |
| Late-payment interest (art 80) | 0.5% a month up to 6 months, 1% from 6 to 12 months, 1.5% after 12 months; not compounded; every started month counts; capped at 100% of the tax | same |
| Tax evasion (art 81) | Fine equal to the evaded tax, plus criminal penalties | same |

Payments offset principal tax first, then the fine, then interest (art 80). The Law's art 82 text reads "twenty percent (10%)" for the middle band; we follow the figure 10%, as the numeric text and the 5/10/30 scale show.

| VAT fault | Fine | Source |
|---|---|---|
| Trading unregistered when required | 50% of VAT for the whole period | https://www.rra.gov.rw/en/domestic-tax-services/value-added-tax/penalties-and-interest |
| Incorrect invoice to cut VAT or raise input | 100% of the VAT | same |
| Non-registered person issuing a VAT invoice | 100% and pays the tax shown | same |
| Non-VAT person failing to issue an EIS invoice | 2 times the transaction value; doubled on repeat in 2 years (Law 020/2023 art 84) | https://www.rra.gov.rw/fileadmin/user_upload/OG_n___Special_ter_of_31.03.2023_Uburyo_bw_isoresha_Tax_procedures_01.pdf |

## Cross-border points

Exports are zero-rated with documents. There is no EAC intra-community mechanism in the law: imports from EAC countries pay VAT at the customs point. Foreign services and online supplies: see The base.

## Two worked examples that recompute

**Example 1. Quarter.** Taxable sales FRW 10,000,000; deductible purchases FRW 6,000,000.

```oa-check
name: Net VAT for a period
inputs:
  sales: 10000000
  purchases: 6000000
steps:
  - output: sales * 0.18
  - input: purchases * 0.18
  - net: output - input
expected:
  net: 720000.00
```

**Example 2. Decision: buy a service abroad or locally.** Service of FRW 3,000,000 from abroad, with similar local supply available. Output FRW 540,000 is due and no input is allowed, so it costs 540,000. The same service from a local VAT-registered supplier costs nothing net. With Minister authorisation for an unavailable service, net cost is zero.

```oa-check
name: Foreign service, local alternative
inputs:
  price: 3000000
  input_allowed: 0
steps:
  - output: price * 0.18
  - input: output * input_allowed
  - cost: output - input
expected:
  cost: 540000.00
```

## Ask the client first

1. Turnover over the last 12 months and last 3 months?
2. Monthly or quarterly?
3. Exempt supplies too? If so, apportion.
4. Foreign services? Available locally? Authorised?
5. Imports of machinery after 30 June 2026?
6. EIS or ERP in use?

## Sources

| Source | URL | Read on |
|---|---|---|
| Law 049/2023 establishing VAT (read: arts 4-8, 12-14, 17-20, 25-29) | https://www.rra.gov.rw/fileadmin/user_upload/VAT_Law_of_2023_ok.pdf | 2026-11-01 |
| Official Gazette Special of 29/05/2025: Law 009/2025 (VAT), Law 014/2025 (income tax) (whole of both) | https://www.minijust.gov.rw/index.php?eID=dumpFile&f=130496&t=f&token=[REDACTED] | 2026-11-01 |
| Ministerial Order 004/26/10/TC of 29/04/2026 (read: arts 2-27) | https://www.rra.gov.rw/fileadmin/Folder_for_2025/Ministerial_Order_VAT_on_Online_Services_April_2026.pdf | 2026-11-01 |
| Ministerial Order 006/26/10/TC of 24/09/2026 (whole) | https://www.rra.gov.rw/fileadmin/user_upload/Ministerial_order_EBM.pdf | 2026-11-01 |
| Commissioner General Instructions 001/2023, quarterly PAYE and VAT (whole) | https://www.rra.gov.rw/fileadmin/user_upload/13.1.23_OG_n___Special_of_11.01.2023_Kumenyekanisha_no_kwishyura_umusoro_ku_bihembo_n_umusoro_ku_nyongeragaciro_ku_gihembwe.pdf | 2026-11-01 |
| RRA Commissioner General guidelines, VAT deferral facility, July 2026 (whole, OCR of scan) | https://www.rra.gov.rw/fileadmin/Folder_for_2025/CG__s_Guidelines_For_Implementation_of_VAT-July_2026.pdf | 2026-11-01 |
| RRA, VAT registration page (whole page) | https://www.rra.gov.rw/en/domestic-tax-services/value-added-tax/default-title-1 | 2026-11-01 |
| RRA, Declare VAT page (whole page) | https://www.rra.gov.rw/en/domestic-tax-services/value-added-tax/penalties-and-interest | 2026-11-01 |
| Law 020/2023 on tax procedures (read: arts 15, 35, 78, 80-88) | https://www.rra.gov.rw/fileadmin/user_upload/OG_n___Special_ter_of_31.03.2023_Uburyo_bw_isoresha_Tax_procedures_01.pdf | 2026-11-01 |
| RRA Tax Handbook 2025 (read: E-Tax steps, real regime, PAYE, VAT declaration chapters) | https://www.rra.gov.rw/fileadmin/Folder_for_2025/RRA_Tax_Handbook_2025_Final.pdf | 2026-11-01 |

Not yet confirmed: three old file lines not re-read in the law, kept as prompts only: 18% at market value on stock held at cessation; a supply to a special economic zone being zero-rated with a certificate; handwritten non-EBM invoices giving no input credit; the 20,000,000 and 5,000,000 thresholds are from the RRA page; the article of the law was not found in our extract; CG Instructions 001/2023 predate Law 049/2023; RRA Pay PAYE page shows March to May style quarters for PAYE, which differ from the Instructions, so confirm with RRA before relying on either; old return boxes A1-A7, B1-B9, C1-C3 could not be matched to any page read and are removed from the body; the old supplier pattern treatments of REG, WASAC and BK are working defaults; the medical scheme payment date is not a VAT point; Order 003/24 on foreign service authorisation was not read; Order 001/25 list of exempt financial services was only partly extracted.

## Today's figures and who stands behind this skill

This file is an AI skill (tax rules your AI follows) from OpenAccountants, copied on 2026-11-01. Rates, thresholds and deadlines change. For the current version of this skill, its official sources and the named accountant (if any) who stands behind it, call `get_skill` with slug `rwanda-vat` on the OpenAccountants connector (https://www.openaccountants.com/connect), or read https://www.openaccountants.com/skills/rwanda-vat. If neither is available, confirm every figure against the official source pages cited above before relying on it.