Key topics on the workshop agenda included leveraging modern technologies to enhance VAT compliance, sharing country case studies, and discussing the implementation of VAT on cross-border digital supplies.
The African Tax Administration Forum (ATAF) organized a workshop in Kigali, Rwanda, from June 18th to June 21st, 2024, hosted by the
Rwanda Revenue Authority (RRA). The workshop aimed to foster peer-to-peer learning among ATAF member countries and support the implementation of tax policy and administration reforms, specifically focusing on e-invoicing systems and
Value Added Tax (VAT) on cross-border digital supplies.
In his opening remarks, Mr Anthony Munanda, Acting Head of Domestic Resource Mobilisation, highlighted the critical opportunities presented by adopting e-invoicing to enhance VAT compliance in African countries. He noted the importance of digital solutions in improving the tax-to-GDP ratios, which remain disproportionately low in Africa. The workshop was timely, given the pressing need for modern technologies to overcome challenges such as underreporting of sales, tax evasion, and lack of transaction transparency.
Key topics on the workshop agenda included leveraging modern technologies to enhance VAT compliance, sharing country case studies, and discussing the implementation of VAT on cross-border digital supplies. Participants explored the administrative measures and ICT infrastructure adopted by other countries, gaining valuable insights from presentations by experts from member tax administrations.
Mr. Ronald Niwenshuti, the RRA Commissioner General, emphasized the workshop’s role in providing an excellent platform for African countries to reflect on technology’s opportunities for enhancing VAT compliance. He acknowledged that VAT continues to underperform in many African countries, including Rwanda, due to limited transaction traceability and tax evasion. However, he also noted that since adopting these technologies, the RRA has seen significant growth in VAT revenue, with a 50.7% increase in FY 2022/23 compared to FY 2018/19. Corporate income taxes have also grown by almost 92.6% over the same period, demonstrating the broader benefits of improved sales reporting for VAT declarations.
The workshop concluded with a benchmarking study, providing delegates with practical insights into the administrative measures and ICT infrastructure already implemented in Rwanda. This study and the guidelines and strategies shared during the workshop aim to equip ATAF member countries with the tools necessary to enhance their VAT compliance and overall tax administration in the digital age.
