- Rwanda’s new VAT law introduces exemptions for electric and hybrid vehicles, processed rice and maize flour, and aircraft spare parts and maintenance tools.
- The law also taxes online supplies and rewards consumers who request electronic invoices.
- However, the definition of ‘exported service’ in the new VAT law departs from the widely accepted principle of destination, which may affect Rwanda’s tax competitiveness.
- The law exempts VAT on internal restructuring but has conditions that make the provision irrelevant, and it should have considered exempting the transfer of business as a going concern.
- The new VAT law shifts the burden of input VAT credit and refund entitlement from the tax administration to taxpayers, which may lead to increased VAT payable and penalties for taxpayers.
Source: allafrica.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
