This Law establishes the value added tax on goods and services supplied in Rwanda and on imported goods and services. 

In this Law:

(a)    “supply of goods” means the transfer of the right of ownership of goods to another person;

(b)    “capital assets” means tangible assets that a taxpayer uses to achieve the production;

(c)    “goods” means tangible property, including animals but excluding money;

(d)    “taxable goods or services” means goods or services imported or locally supplied to a person and which are subject to tax in accordance with the provisions of this Law;

(e)    “value added tax period” means a calendar month or quarter in which the value added tax must be paid;

(f)    “consideration” means the total monetary value of goods or services, including –

(i)    the total amount of money paid or payable on goods or services supplied directly or indirectly

(ii)    the market value price of a good or service supplied without pay, including any discount and rebate;

(iii)    and any duties, levies, fees, charges and taxes paid in customs excluding value added tax paid or payable on goods or services;

(g)    “hybrid automotive vehicle” means a type of automotive vehicle that combines a  conventional  internal  combustion engine system with an electric vehicle propulsion system

(h)    “value added tax return” means a document that a taxpayer submits to the tax administration indicating the computation of tax to be paid;

(i)    “customs legislation” means the East African Community Customs Management Act

(j)    “Commissioner General” means the Commissioner General of Rwanda Revenue Authority;

(k)    “Minister” means the Minister in charge of taxes;

(l)    “service” means any intangible activity performed for one or more persons in return for payment;

(m)    “service supplied in Rwanda” means a service is regarded as supplied in Rwanda if the service supplier –

(i)    has headquarters in Rwanda only;

(ii)    is a resident of Rwanda but has no headquarters in Rwanda or elsewhere;

(iii)    has headquarters in Rwanda and elsewhere but the headquarters most directly concerned with the supply of the service referred to is the one in Rwanda;

(iv)    has no headquarters in Rwanda but has it elsewhere and the recipients of the service need it or benefit from it in Rwanda;

(n)    “all-inclusive tour package” means an arrangement whereby a tour operator organises a service package of necessary services, including accommodation, transport of tourists and any other services provided at an all-inclusive price;

(o)    “exported service” means a service provided for use or consumption outside Rwanda whether the service is supplied in Rwanda or both inside and outside Rwanda but which does not have any impact on the recipient’s interest in Rwanda;

(p)    “construction” means the action of constructing a building or other physical infrastructure, whether in whole or in part thereof or an annex thereto, including services of maintenance and upgrading;

(q)    “final consumer” includes any person who buys a service or a good without the intention to sell or to use it for business purposes but for personal use;

(r)    “person” includes an individual, a company, a partnership, a foundation, a permanent establishment, a trust, a cooperative, a local or international non-governmental organisation with legal personality, faith-based organisation, a public organ, a diplomatic body that represents a foreign country, an international organisation and any other association of persons regardless of its status;

(t)    “input tax” means the refundable value added tax paid by the taxpayer in respect of taxable goods and services he or she has to use in his or her business activity;

(t)    “output tax” means value added tax charged by a taxpayer on the sale by him or her of taxable goods or services;

(u)    “liberal profession” means a profession exercised on the basis of special skills, in an independent manner, in offering services to the client;

(v)    “taxpayer” means a person who is registered for value added tax.
 

(1) Value added tax is charged on –
(a)    taxable goods and services, including online supplies;
(b)    and taxable imported goods and services.

(2) An Order of the Minister determines modalities for taxation of goods and services provided online.
 

The rate of value added tax is –

(a)    0% of the value of taxable goods or services that are zero-rated as provided for by this Law;

(b)    or 18% for other goods and services supplied in Rwanda or imported.

(1) Every taxpayer registered for value added tax is obliged to charge the tax on the taxable goods and services and remit it to the tax administration within the deadline provided for by this Law.

(2)    A person who imports taxable goods and services pays value added tax in accordance with the rates provided for by this Law.

(3)    A public procuring entity is obliged to withhold value added tax on all payments made for taxable goods and services supplied by successful value added tax-registered bidders.
 

(1)    All goods supplied by a taxpayer in Rwanda are taxable except the ones which are exempted.

(2)    Services supplied are taxable if –

(a)    the service recipient and the service provider are residents of Rwanda;

(b)    the service recipient is a resident of Rwanda and the service is useful to the recipient in Rwanda; or

(c)    the service provider is a resident of Rwanda and the service is useful to the recipient in Rwanda.

(3)    Unless exempted under this Law, an asset of a person used in business that is sold is subjected to the value added tax unless it is proved that the taxpayer was denied input tax on acquisition cost of that asset in accordance with the provisions of this Law.

(4)    Taxable assets of the taxpayer’s business that is owned by the taxpayer on the day of de-registration for value added tax are subjected to the tax that remains unpaid as of that same day.

(5)    A taxpayer must pay value added tax for taxable goods and services of his or her business that the taxpayer used for his or her personal consumption.

(6)    Imported goods or services are taxable if they are not exempted.

(1)    The following goods and services are zero-rated:

(a)    exported goods and their auxiliary services, including those that are already exempted;

(b)    exported services;

(c)    minerals sold on the domestic market;

(d)    international    transportation services of goods entering Rwanda and transportation services of goods in transit in Rwanda to other countries and related services;

(e)    commission fee charged to a tourist for all-inclusive tour package booking service;

(f)    goods sold in the shops that are exempted from tax as provided for by the law governing customs;

(g)    goods supplied in the shop intended for persons working in such security organs as provided for by the legislation governing such a shop;

(h)    goods and services intended for the following special categories of persons that are used in their missions:

     (i)    diplomats accredited to Rwanda;                                                                     

    (ii)    international organisations having signed agreements with the Republic of Rwanda

    (iii)    local    non-governmental organisations to which goods and services are donated and       acquired through funding by countries or international organisations having signed agreements with the Republic of Rwanda;

    (iv)    projects funded by partners having signed agreements with the Republic of Rwanda.

(i) locally assembled electric automotive vehicles, hybrid automotive vehicles, relevant batteries and their electric charging station equipment.

(2) The Commissioner General establishes rules governing the procedure for implementing the provisions of Paragraph (1)(h) of this Article.

 

_{as amended by Law Nº 009/2025 of 27/05/2025 amending Law Nº 049/2023 of 05/09/2023 establishing Value Added Tax} 

(1) The following goods and services are exempted from value added tax:   

(a) water supply and environmental conservation services for nonprofit making purposes with the exception of sewage pump-out services;   

(b) the following goods and services for health-related purposes:   

    (i) health and medical services;   

    (ii) equipment intended for persons with disabilities;  

    (iii)goods and pharmaceutical products appearing on the list established by the Minister in charge of health and approved by the Minister, which are imported or locally manufactured by a person authorised by the competent authority;    

    (iv) sanitary pads;  

(c) educational materials, services and equipment supplied physically or online that appear on the list established by the Minister in charge of education and approved by the Minister;   

(d) books, newspapers and journals;   

(e) the following transportation services carried out by a licensed person:  

     (i) transportation of persons by land in a motor vehicle  with a capacity of 14 persons or more;   

     (ii) transportation of persons by air; 

     (iii)transportation of persons or goods by boat;  

     (iv) transportation of household solid waste;  

(f) lending, lease and sale of the following:  

     (i) sale or lease of land;   

     (ii) sale of whole or part of a building for residential use;  

     (iii) renting or grant of the right to occupy a building used as a place of residence for one person or a family if the period of accommodation for a continuous term exceeds 90 days;   

     (iv) lease of a movable property made by a licensed financial institution or by or for a special purpose vehicle;     

(g) financial and insurance services determined by an Order of the Minister in charge of finance;    

(h) goods and services in connection with burial or cremation of a dead body that appear on the list established by the Minister in charge of cemeteries and approved by the Minister;   

(i) energy supply equipment that appears on the list established by the Minister in charge of energy and approved by the Minister;   

(j) exempted goods under lease;   

(k) agricultural and livestock products, except processed ones. However, processed maize, rice and milk, excluding powdered milk and milk derived products, are exempted from this tax;    

(l) agricultural and livestock insurance services; 

(m) services, agricultural inputs, agricultural and livestock materials and machinery that appear on the list established by the Minister in charge of agriculture and animal resources and approved by the Minister;   

(n) gaming activities;  

(o) personal effects of a Rwandan diplomat returning from a foreign mission, those of a Rwandan national who was residing abroad and is returning to Rwanda as well as those of any other Rwandan national returning to Rwanda and entitled to tax exemption in accordance with the customs legislation. In relation to the motor vehicle they possess, with the exception of returning Rwandan diplomats, other persons referred to in this Subparagraph are required to have owned the motor vehicle for a period of at least 12 months for being exempted; 

(p) goods and services intended for special economic zone imported by a licensed zone user;   

(q) goods, materials, supplies, machinery and motor vehicles intended for public organs in charge of national defence and security determined by law;  

(r) goods sold in customs before payment of taxes and duties;   

(s) machinery and capital assets of industries as well as raw materials used in industries that appear on the list established by the Minister in charge of industry and approved by the Minister;   

(t) aircraft, their spare parts and maintenance tools that appear on the list established by the Minister in charge of transport and approved by the Minister;   

(u) transfer of assets between related persons residing in Rwanda at the time of the restructuring of their business, activity if –   

    (i) the business activity of a person that acquires assets persists for a period of not less than three years; or  

   (ii) the person transferring the assets has the actual business of supplying or providing exempted goods or services;   

(v) equipment for conservation of bodies of victims of the Genocide against the Tutsi and its related evidence that appear on the list established by the Minister in charge of commemoration of the Genocide against the Tutsi and approved by the Minister;   

(w) goods or services which are purchased, sold, assigned, exchanged or otherwise transferred to or by a special purpose vehicle as a consequence of entering into an asset-backed securitisation transaction if the transaction has been approved or authorised based on the law regulating the capital market in Rwanda and the special purpose vehicle is a taxpayer registered in Rwanda;       

(x) imported pure electric motor vehicles, relevant batteries and their electric charging station equipment.     

(2) Entities that import or locally manufacture the exempted equipment for health-related purposes referred to in Paragraph (1)(b) are those recognised by the Rwandan legislation as public organs, social welfare organisations and any other form of voluntary or charitable organisations.      

(3) The exemption of the goods referred to in Paragraph (1) is applied as follows: 

(a) the energy supply equipment referred to in Paragraph (1)(i) is exempted until 30 June 2028;   

(b) machinery and capital assets of industries as well as raw materials used in industries referred to in Paragraph (1)(s) are exempted until 30 June 2026;   

(c) imported pure electric motor vehicles, relevant batteries and their electric charging station equipment referred to in Paragraph (1)(x) are exempted until 30 June 2028.     

(4) The equipment intended for persons with disabilities referred to in Paragraph (1)(b)(ii) is the one confirmed by a recognised medical doctor as being related to the disability of target users if the importer or the local manufacturer is a natural person. 

(5) Processed agricultural and livestock products referred to in Paragraph (1)(k) are the following:

(a) products whose added value is created by the use of machinery or of any other method up to the stage of being consumed or used;    

(b) products whose added value is created in the manner that changes the number of the harmonized system code and related duty rates used in the customs system.    

(6) An Order of the Minister determines requirements for an industry to be exempted from payment of value added tax on machinery and capital assets of industries as well as raw materials used in industries referred to in Paragraph (1)(s).” 

For the purpose of enforcement of this Law, zero-rated goods or services under Article 7 of this Law and exempted under provision of Article 8 of this Law are considered as zero-rated.

(1)    The following acts constitute the supply of taxable goods or services:

(a)    sale, exchange or other transfer of the right to dispose goods as the owner;

(b)    provision of any service;

(c)    lease of goods under a leasing agreement.

(2)    For a taxpayer who supplies goods or services either occasionally or without consideration, the supply of such goods or services is considered taxable if the taxpayer does so –

(a) for own benefit or for the benefit of others;

(b) for the benefit of business partners, any director or person employed in the business; or

(c) for the benefit of customers of the business, except bonuses on telephone    communications approved by the institution in charge of regulation of public utilities.
 

Subject to the provisions of this Law, the supply of goods or particular services as complementary to goods or services of another kind is treated as part of the principal goods or services.

(1) The tax point for the supply of goods and services is the one that is the earliest among the following:

(a) the date on which the invoice is issued;

(b) the date on which payment of goods and services is made, including partial payment. However, provisions of this subparagraph do not apply to advance payment made in construction services;

(c) the date on which goods are either removed from the premises of the supplier or given to the recipient;

(d) the date on which the service is delivered;

(e) the date on which a taxpayer applies for deregistration from the value added tax.

(2) Taxable goods or services provided for under this Law used for personal purposes are taxed on the date on which they are removed from the store or on the date on which the service is delivered.
 

The taxable value of each good or service is determined as follows:

(a) unless this Law provides otherwise, the taxable value on goods or services is the consideration paid in money by the recipient on that good or service;

(b) if goods or services are supplied for a non-monetary consideration, a monetary consideration for one part and non-monetary for the other or when the consideration is less than the market value of the goods or services, the taxable value on goods and services is the fair market value exclusive of the value added tax. This also applies in case of exchange or if the part of consideration is through exchange.
 

(1)    A taxpayer who acquires a service from a person who is outside Rwanda is considered as if he or she has received a taxable service and an output tax from that person who resides outside Rwanda.

(2)    Service delivery is considered as if it was made on the date on which the service was delivered by the person who resides outside Rwanda for a value determined under this Law. The output tax is payable on the date of declaration of the value added tax for the tax period in which the service was delivered. The output tax must appear on the receipt that justified the payment to the foreign service provider and that document is considered to be the value added tax invoice.

(3)    Recipients of foreign services which are not available in Rwanda are allowed to deduct input tax from output tax.

(4)    Services are considered not to be available in Rwanda if there is no person who can deliver identical or similar services on the local market.

(5)    The taxpayer who wants to acquire a service not available in Rwanda must request for authorisation from the Minister.

(6)    An Order of the Minister determines modalities to apply for authorisation to acquire foreign services not available in Rwanda.

 

Goods are considered to have been imported on the date they enter Rwandan territory in accordance with customs law while services are considered to have been imported on the date the importer receives them.

(1) The basic value for taxation of imported goods is the sum of –

(a) the value of the goods as determined by customs law, whether or not customs duty is payable on such imported goods;

(b) the cost of insurance and freight incurred in bringing the goods to Rwanda;

(c) the    cost    for    services    which facilitated the import of goods;

(d) the amount of customs duty, excise, port charges or other fiscal charges other than value added tax payable in respect of imported goods.

(2) Provisions of Paragraph (1)(b) and (c) of this Article apply if they are not specified under Subparagraph (a) of the same Paragraph:

(3) If goods are re-imported after being exported for repair, renovation or improvement and the nature of the goods is not changed, the value of the import is the amount of the increase in value of the goods as a result of such repair, renovation or improvement.
 

(1) A taxpayer who supplies taxable goods or services during a value added tax period is entitled to a credit of the input tax paid in respect of taxable acquisitions or taxable imported goods during the tax period for the purposes of selling taxable goods or delivering taxable services provided that the output tax was paid to the tax administration.

(2) Subject to the provisions of Paragraph (1) of this Article, the input tax to which the taxpayer is entitled is the one related only to his or her business activity.

(3) If a taxpayer purchased in the country or imported taxable goods or services which are directly or indirectly related, on one hand partly to taxable goods or services and partly to exempted goods or services on the other hand, the sum of the input tax is a portion of the tax paid to the taxable goods or services in relation with his or her taxable business.

(4) A taxpayer is not entitled to input tax if taxable goods or services purchased in Rwanda or imported are intended for personal purposes.

(5) However, if at the time of a value added tax declaration for a tax period in which a taxpayer was entitled to an input tax specified under this Law, the taxpayer does not have the relevant documents to claim for input tax, he or she is not entitled to the input tax during that period.

(6) Subject to provisions of Paragraph (5) of this Article, a taxpayer who is denied the input tax during the tax period is entitled to that tax in the first value added tax period if the taxpayer holds relevant documents which do not exceed 12 months starting from the day of value added tax declaration related to those documents.

 

A newly registered taxpayer on value added tax may claim, in his or her first declaration, an input tax on the goods that he or she had in stock during the date of registration.

The taxpayer who claims for an input tax provides the following documents:

(a) the value added tax invoice in the case of taxable goods and services supplied from the local market;

(b) customs documents that proves the payment in case of taxable imported goods.
 

No input tax is allowed on the following goods and services:

(a) a passenger vehicle, spare parts or repair and maintenance services for such a vehicle. However, a taxpayer who conducts business of sale or rent of passenger vehicles, or has a driving school is entitled to input tax;

(b) goods acquired or imported for entertainment purposes. However, if the taxpayer’s business involves providing entertainment and the entertainment is provided in the ordinary course of that business and was not entrusted to a partner or employee, he or she is entitled to input tax;

(c) goods acquired for accommodation purposes, unless –

    (i) the taxpayer’s business involves provision of accommodation services;

    (ii) the accommodation was provided to persons who are away from their usual residential home for the interest of the business activity or employer’s interests;

(d) 40% of the value added tax paid on taxable goods and services in business activity, if such goods and services are inseparable in such a way that it is impossible to determine which one is
used for business purposes or for personal use.

 

Post-sale adjustments may result from the following reasons:

(a)    taxable goods or services no longer exist;

(b)    the nature of taxable goods or services is changed or damaged;

(c)    the consideration of taxable goods or services is changed; or

(d)    goods or part of the goods was returned to the supplier.
 

(1) In case of post-sale adjustments as provided for in Article 21 of this Law, a seller registered for value added tax must keep the original invoice accompanied with explanatory document of cancelation of that invoice.

(2) An Order of the Minister determines the procedures for adjustment of value added tax and the contents of the document cancelling the corresponding invoice.
 

(1)    If a taxpayer supplied goods or services for a consideration and paid all applicable tax on those goods and services but has not yet received payment either in full or in part, he or she is entitled to a refund of the tax paid for which he or she did not receive if–

(a)    the amount is equivalent to the debt that was previously included in the value of taxable goods or services;

(b)    the debt is written off in the books of accounts of the supplier of goods or services;

(c) the taxpayer has taken all possible steps in pursuing payment and has shown a court decision declaring the insolvency of his or her debtor.

(2) However, for an individual whose debt is less than FRW 3,000,000 in addition to the conditions referred to in Paragraph (1)(a) and (b) of this Article, the taxpayer must provide proof that he or she has taken all reasonable steps over a period of three years to recover the debt.

 

(1) A taxpayer who, for valid reasons, wants to amend the original value added tax return after deadline, by deducting the value added tax payable, must apply in writing to the Commissioner General.

(2) The taxpayer must, in the amendment of the original value added tax return, adjust the value added tax account to which the error or omission relates, and reflects such an adjustment in the amended return.

(1) The value added tax is calculated based on the general total of value added tax received or deducted from the buyer minus the input tax allowed to the taxpayer as provided for by this Law.

(2) Without prejudice to provisions of Article 17 (5) of this Law, the tax received or deducted from the buyer and the input tax provided for in Paragraph (1) of this Article must correspond to the tax period.
 

(1) If the input tax exceeds output tax, the surplus tax is refunded to the taxpayer as provided for by this Law.

(2) Representatives of foreign countries and international organisations are refunded the value added tax on the basis of the agreement which the country or international organisation they represent concluded with the Republic of Rwanda.

(3) Input value added tax refundable as provided for by this Article must be claimed in its taxable period.

(4) Without prejudice to provisions of law on investment promotion and facilitation, input value added tax refundable as provided for by this Article is refunded within 30 days calculated from the day following the day of declaration.

(5) However, if the carrying out of a comprehensive audit prior to refund is considered necessary, the period stated in Paragraph (4) of this Article is not considered. In that case, the input tax is refunded within 30 days calculated from the day following the day of issuing the audit report.

(6) The surplus value added tax is refunded if the value added tax on the goods and services purchased matches the tax paid to the tax administration.

 

(1) A final consumer who presents the tax administration with an electronic invoice is granted a reward on the value added tax paid on each invoice.

(2) An Order of the Minister determines the value of the reward and the conditions for granting such a reward.
 

(1) The value added tax is declared after the end of a month or after a quarter of three months.

(2) A taxpayer whose annual turnover is equal to or less than FRW 200,000,000, declares the value added tax quarterly within 15 days after the end of each quarter.

(3) A taxpayer whose annual turnover is more than FRW 200,000,000, declares the value added tax monthly within 15 days after the end of the month.

(4) However, a taxpayer whose annual turnover is equal to or less than FRW 200,000,000 and who intends to opt for a monthly value added tax declaration is authorised to do so.

(5) A taxpayer must file a value added tax declaration in the periods relevant to his or her category, regardless of whether he or she made sales or not, whether he or she has to pay a tax or he or she is requesting a refund, or even if the difference is zero.

(6) Declaration of value added tax is made in accordance with the modalities determined by the tax administration.
 

(1) The value added tax declared by a taxpayer must be paid within 15 days following each month or each quarter of declaration.

(2) The value added tax payable by an importer is due when the imported goods enter the customs point, in accordance with customs law.

A taxpayer registered for value added tax is issued with a certification of registration electronically.

An enterprise that is managed by a taxpayer and has branches is regarded as a single enterprise for the purposes of this Law. A person who runs a business in multiple branches of an enterprise is required to register the business under a single taxpayer identification number rather than under different numbers.

(1) The currency used in implementation of this Law is expressed in Rwandan francs.

(2) If any amount is expressed or paid in a currency other than Rwandan francs –

(a) on importation of goods, the amount is converted into Rwandan francs at the exchange rate applicable under the  customs  legislation  for  the purposes of computing the customs duty payable on the import;

(b) in any other case, the amount is to be converted into Rwandan francs at the National Bank of Rwanda exchange rate applicable between the foreign currency and Rwandan franc on the date on which the amount is given for the purposes of this Law.

(3) If there is no existing applicable exchange rate for a certain currency used by the National Bank of Rwanda, the applicable rate is computed on the basis of the National Bank’s rate for the United States Dollar and a published cross-rate for that currency in question against the United States Dollar.

(1) Upon request, the Commissioner General may authorise the refund of part or all of the value added tax incurred on goods acquired or imported by –

(a)    embassies, a diplomatic or consular mission or by a diplomat or consular official who enjoys full or limited immunity and rights according to the law governing diplomats accredited to Rwanda as well as the law governing trade cooperation between countries;

(b)    an international governmental organisation or foreign government to the extent required in accordance with international agreement;

(c)    an international organisation of which Rwanda is a member when such an organisation holds an international meeting in Rwanda.

(2) The application for a refund of tax under this article must be made on the approved form and in the manner prescribed by the Commissioner General and it must be accompanied by supporting documents as the Commissioner General may require. Some of such documents are –

(a)    evidence that the value added tax for which the refund is sought has in fact occurred;

(b)    evidence of the applicant’s entitlement to make an application for refund under this Article.

(3) In this article, international agreement means an agreement between the Government of Rwanda and a foreign Government or a governmental   international organisation for the provision of financial, technical, humanitarian, or administrative assistance to the Government of Rwanda.

 

(1)    The market value of goods or services is the consideration the goods and services would fetch in the open market at the time of supply.

(2)    If it is impossible to determine the market value of goods or services at a particular time, the market value is the consideration similar goods or services would ordinarily fetch in the open market in consideration of the difference between the similar goods or services and the actual goods or services. For this purpose, goods are similar if they are the same or closely resemble the other goods taking into account the character, quality, functionality, materials, and their reputation.

(3)    If the value of goods and services on the market is to be determined on specific goods or services or on the value of a person’s acquisitions, the value is determined in consideration of the market value of those goods or services or of such acquisitions as determined by this Article, in a given period.

(4) If the market value of goods or services cannot be determined in accordance with the provisions of the preceding paragraphs, their value is the consideration determined by rules issued by the Commissioner General.

 

_{as amended by Law Nº 009/2025 of 27/05/2025 amending Law Nº 049/2023 of 05/09/2023 establishing Value Added Tax} 

This Law was drafted in English, considered and adopted in Ikinyarwanda.

Law no 37/2012 of 9/12/2012 establishing the value added tax as amended to date is repealed.

This Law comes into force on the date of its publication in the Official Gazette of the Republic of Rwanda.