Rwanda plans to introduce value added tax (VAT) on the supply of digital services and products to Rwandan residents by non-resident suppliers such as Netflix and Amazon. According to the Rwanda Revenue Authority (RRA), levying VAT on the cross-border supply of digital services and products is in line with the destination principle of VAT, dictating that VAT must be paid in the country where consumption of the service or product takes place.
The RRA has since engaged the African Tax Administration Forum (ATAF) and other international organizations to undertake an impact assessment of the proposed tax on revenue and the digital services sector.
This information was shared by the Deputy Commissioner General (DCG) of the RRA, Jean Louis Kaliningondo, in his interview on 11 March 2022 with the local daily, The New Times.