Rwanda: RRA withdraws privileges from E-Billing Machine defaulters

 

2 January 2014

Rwanda Revenue Authority (RRA) announced the withdrawal of administrative privileges from all Value Added Tax registered taxpayers who did not comply with the first deadline of December 31, 2013 for acquisition of electronic billing machines. This came into force yesterday despite the deadline for owning the machines having been pushed from December 31, 2013 to March 31, 2014. Others who will be affected are those that will have not obtained exemption from electronic billing usage by RRA, as assessments continue.

“RRA will immediately withdraw administrative privileges formally granted to compliant taxpayers for those who will not have complied with the set deadline of December 3, 2013 for acquisition of Electronic billing machines and have not obtained exemption from its usage,” Drocelle Mukashyaka, the Deputy Commissioner for Taxpayer Services confirmed to The New Times.

 

On top of losing these services, traders who will not comply with the March 31 deadline will incur fines ranging between Rwf5 million and Rwf20 million. Mukashyaka said the privileges to be stripped off from non compliant e-billing machine taxpayers include; Quitus Fiscal, Blue Channel, Gold Card scheme and all instalment payments for taxes. Important as well, tax clearance certificates and statement of arrears will be stripped from non-compliant taxpayers participating in public tenders.

“The move is intended to enforce the maximum use of electronic billing machines by VAT registered taxpayers and discourage unscrupulous taxpayers that would engage in tax evasion by not issuing tax invoices to their clients using these machines,” she said.

 

RRA recently introduced a consumer compliance award aimed at encouraging buyers to ask for receipts and be rewarded with cash and prizes in weekly draws. Despite several calls by RRA urging traders to purchase and start using the machines, only about 800 taxpayers out of 10,000 are using the machines. While RRA argues that some taxpayers are deliberately not using electronic billing machines, several business owners around Kigali claim the machines, which cost between Rwf180,000 and Rwf450,000, are expensive to purchase.

The machines were introduced in February last year to facilitate the tax authorities in calculating VAT, while they also facilitate traders by recording stock.
 
 
Source: Newtimes, Rwanda

Rwanda: E-Billing Machines – Traders Should Look to Long-Term Gains

 

3 January 2014

When Rwanda Revenue Authority (RRA) introduced electronic billing system in February last year, it was after assessing and weighing several pros against the cons of the system. The machines are to facilitate RRA in calculating VAT. It also facilitates traders by recording stock. The use of the machines is also in part to discourage unscrupulous taxpayers who would engage in tax evasion by not issuing tax invoices to their clients.
 
Like a trader already using the machine said, you will not be lining up at RRA offices to find out how much tax you owe the revenue body. The machine does that and you can know how much tax you owe after every transaction. What better deal could still be there than in embracing the digital future today? Unfortunately, it appears the majority of traders are apprehensive. Media reports indicate that only 800 out of 10,000 taxpayers are using the e-billing machines, forcing RRA to extend the deadline to March 31 to give them more time to adopt the machines.

Whereas being apprehensive would be appreciated considering that it is a new digital world traders are being told to walk into, some excuses smack of selfishness. It is true that a good trader is a tested miser, but to complain about paying for service of Rwf480,000 that would mint more advantages is taking one’s measly traits a tad too far. Traders ought to look beyond immediate returns. The machine is not like a single-use-only hardware, but will be used to serve interests it is designed for over time. To decry the current price of the e-billing machine is to think of it as some tissue paper, which is sad for the economy and the technological advancement government is trying to realise.
 
At the end of the day, even expecting RRA to give the machines free of charge is a long call; after all, no buyer walks to your warehouse to ask for free goods.
 
 
allAfrica

Rwanda: Special Feature – RRA Extends Deadline for Electronic Billing Machines to March 31

 

23 January 2014

In a bid to ensure that all businesses comply with the installation and use of Electronic Billing Machines (EBM), Rwanda Revenue Authority (RRA) has extended the deadline from December 31 to March 31. The extension is meant to provide enough time for VAT-registered tax payers to purchase machines and also give time to those who would wish to apply for exemptions from the use of machines to do so.
 
The tax body has increased awareness through a campaign to emphasize the use of Electronic Billing Machines which aim to boost tax compliance as well as ease doing business. 

RRA introduced the machines in February last year with a pilot phase that saw over 800 machines distributed for free to selected businesses around Kigali. With the pilot phase successful, RRA began rollout out of the machines to all VAT registered taxpayers.
 
The tax body says that every business registered for VAT will have to provide a customer with a receipt issued through the EBM for every good or service sold. The groups of taxpayers which must have a special devices installed on its premises to record every sale will be announced by Public Notice, as installation will be carried out in phases. If a business does not have an authorized EBM in place by the announced deadline, it could face a substantial fine.
 

What is the purpose of EBM? 

Besides combating tax evasion and corruption, Electronic Billing Machines will provide a market balance and make equal business opportunities for every entrepreneur.
 
Rwanda Revenue Authority knows that most businesses are not paying their full taxes, and to prove that fact, auditors often spend countless hours investigating and combing through massive documentation, which disrupts the operations of both honest taxpayers and those who evade taxes on purpose. Thanks to EBMs, VAT paid by the citizens and businesses will be instantly recorded and the audit itself will become much simpler.
 
The ambition to raise more internal revenue benefits all citizens who will eventually enjoy better social programs, and the money for that will be coming from VAT.
 

How does Electronic Billing Machine work?

The Sales Data Controller (SDC) records every transaction received from the Certified Invoicing System (CIS), and then ensures that an electronic signature is printed on the receipt. The signature is verifiable by RRA officers using a special decryption tool that is unique for every installed SDC device, thus allowing detection of any falsification. The SDC itself was carefully designed to be secure and tamper-proof. Rwanda Revenue Authority auditors can access any SDC and quickly detect missing taxes.
 
Electronic Billing Machines are designed to suit every business environment. If taxpayers already own invoice-processing equipment, they must make sure their system is compatible with requirements, as soon as possible. A buyer (registered VAT taxpayer) is required to ask the vendor (distributor of the machine) about the compatibility. 

The requirements and the testing method are provided by the SDC, a small electronic device that sits at the heart of the taxpayer’s financial system. Options for its installation depend on the brand and models offered by suppliers. In order to ensure that you are buying a certified machine compliant to RRA’s requirements, users are asked to read information published on each certificate before procuring equipment, as differences exist in the specific options each model has to offer.
 
Taxpayers must be aware not to buy equipment from those who merely claim to be certified; instead, always look at the source of information. If a taxpayer is still not sure who is authorized supplier, our call center will provide consultations, just dial 3004.
 

How can you tell if you are buying from a certified supplier? 

RRA has already certified three vendors who are currently the only vendors supposed to supply the machines. This is done to ensure that the machines on the market meet the requirements. The taxpayer is responsible for ensuring that the CIS is SDC compatible and that it can communicate with the SDC of your choice. SDC compatible means that CIS has equal connectivity settings, which must be adjusted to meet manufacturer’s installation requirements.
 
The tax body issues a confirmation of certification that recognizes the compatibility of the CIS with SDC. This applies only to CIS products and this certificate is not a license to sell. Certificate holders that further develop their products are responsible for ensuring that the certificate is listed here and is updated and remains compatible with technical specification. The certificate is only applicable to the product in the configuration that has been evaluated by Rwanda Revenue Authority.
 

Who is exempted from using the EBMs? 

There is a window for exemptions from the EBMs for some of registered taxpayers. To obtain this exemption, the taxpayer must apply to the tax body, specifying reasons for their inability to use EBMs. The Exemption is line with Articles 17, 18, 19 and 20 of Commissioner General Rules n° 002/2013 of 12/09/2013 implementing the ministerial order no 002/13/10/TC of 31/07/2013 on modalities of use of certified electronic billing machines.

Taxpayers eligible to apply for exemption are:

• All VAT registered businesses where the scope of VAT sales is small compared to the company’s total sales. Sales that add up to 75% of the company’s income derived from exempted services.
• All VAT registered businesses whose sales are only conducted during a limited portion of the year. However, any such taxpayer will not be exempted if sales total at least 30 invoices during a calendar year. Such businesses need to apply for exemption.

  

Penalties and Conditions for not complying

Much as the RRA is asking VAT taxpayers to meet the new deadline for implementing the installation of Electronic Billing Machines, which has been extended to March 31 this year, the tax body says it will withdraw administrative privileges from all VAT registered taxpayers who have not complied with the first deadline of December 31, 2013.

“RRA will immediately withdraw administrative privileges formally granted to compliant taxpayers for those who will not have complied with the set deadline,” said Drocella Mukashyaka, the Deputy Commissioner for Taxpayer Services at RRA.

 

The penalties and conditions will also affect those who have not obtained exemptions from the use of EBMs as privileged in the law. The tax body says that the assessment is still ongoing and asks taxpayers to take the chance to conform to the rules. Accordingly, the taxpayers who have not met the deadline will lose the privileges that the tax body gives to compliant taxpayers, including Quitus Fiscal, Blue Channel, Gold Card scheme and all installment payments for taxes.
 
Mukashyaka says that the reason behind the penalties is to enforce the maximum use of EBMs by VAT registered taxpayers as well as discourage dodgy taxpayers from engaging in tax evasion by not issuing tax invoices to their clients using these machines. Non-compliant taxpayers who participate in public tenders will be stripped of the tax clearance certificates and statement of arrears that are important in tendering processes.
 
To emphasize this measure, Rwanda Revenue Authority has also set up fines for non-compliant businesses that will not have met the March 31 deadline. The fines range from Rwf 5 million to Rwf 20 million. Mukashyaka notes that the privileges are crucial to businesses and therefore, so is the need to install the machines and retain them.
 

Rwanda Revenue Authority continues to reward consumers 

As a way of increasing awareness on the use of Electronic Billing Machines (EBMs), Rwanda Revenue Authority introduced awards that are aimed at rewarding consumers who demand invoices (receipts) issued by such machines.
 
The Consumer Excellence Award was introduced last year to promote the culture of asking for receipts whenever one purchases a product or a service. The Awards, along other efforts Rwanda Revenue Authority has put in place to boost the use of EBMs, are expected to increase compliance of VAT collection, one of the country’s taxes that boost domestic revenues. RRA believes that including consumers in the efforts to encourage the use of the machines is reaping positive results with more people now opting to buy from businesses that have installed machines, thanks to the awards.

“I want to thank special consumers who have taken heed of our call to ask for invoices and we will continue to reward them for their efforts to support the development of their country through promoting tax compliance,” said Richard Tushabe, the Rwanda Revenue Authority (RRA) Deputy Commissioner General.

 

25 consumers are awarded cash and other prizes every week in draws that are automatically done in a secure and highly protected electronic way. The 25 lucky winners, who will be walking away with various prizes every week, including a cash prize of RWF 100,000 francs, will be selected from invoices issued by EBMs countrywide. According to Tushabe, the purpose of the awards is to encourage consumers to demand invoices from the EBMs, something that leaves businesses with no option but to use the machines.

“VAT is paid by the consumer, it is your right to ensure that the tax you have paid has been declared by the tax payer so that it can contribute to the development of our country,” the Deputy Commissioner General noted. “If we work together as Rwandans we can reach our target, so we are asking everyone to insist on an EBM invoice.”

Tushabe noted that the campaign will also help the consumer to get in the habit of demanding for an invoice, which can help them in their day-to-day personal lives. “The invoice can also help you to follow up your daily expenses,” he noted.
 

The use of EBMs has proven to be more efficient and reliable in collecting VAT during the pilot phase, and the tax body has set a deadline for each VAT registered business to have bought such a machine.

“The machines help taxpayers keep records when they have made sales. Secondly, the machines also help RRA to track transactions made by taxpayers,” explained Celestin Bumbakare, RRA Commissioner for Domestic Taxes.
  

How the winners are selected 

To ensure transparency, accuracy and fairness, Rwanda Revenue Authority set up a hi-tech, automated no-human-interference system that selects 25 people every week from thousands of invoices. The system, which records every EBM invoice countrywide, has the capacity using specific calculations to select 25 invoices for awards. Unlike other draws, the machine selects 25 invoices from all the invoices that have been issued for an entire week countrywide without any human interference and then makes a list of 25, something that assures accuracy of the method.
 
Gakwerere explains that the system is opened publicly by only one authorized personnel with a code that is designed for that particular draw which is obtained by multiplying the date of the draw with month and the year.

“The system then gives us a report in a PDF format, meaning no one can tamper with it. Secondly, the report comes with invoice number, the date and place at which it was issued and cannot be changed or altered,” he explained. 

Accordingly, the report is published in print and on the RRA website and on radios and televisions, where people cross check to see if their invoices have been selected for the awards for that week.

“So we are asking people to keep their invoices, because it is the only way they can claim their prizes,” Gakwerere noted.

 

 

Source: allAfrica

Tanzania: Use of Electronic Devices a Must, Traders Warned

 

23 February 2014

Government has maintained that the contested Electronic Fiscal Devices (EFD) must be used by the business community since the machines have been formally introduced in the country. Finance and Economic Affairs Minister, Ms Saada Mkuya made the statement in Dar es Salaam while addressing graduates at the sixth graduation ceremony of the Institute of Tax Administration (ITA).

“There is no way government is going to stop the use of the devices since they have been officially introduced. We will fight legally and ensure they are used as required,” she noted. 

Ms Saada asked the traders to stop looking for excuses and instead comply with the law for the benefit of their businesses and the nation at large. She said that was the only way to solve the challenges the traders encounter on the use of the EFDs and not the abandoning of the machines.

“It is possible that the (traders) protesting the use of EFDs now have sufficient knowledge on the importance of the machines. We need to continue creating public awareness,” she said.

The Minister asked the business community and the public in general to be patriotic by paying taxes for the development of the nation. In a separate development, she asked ITA to be creative towards the development. She was responding to a request by the institute that had asked government to providing the institute with 70b/- in the next financial budget for expansion of the institute. The Minister asked Tanzania Revenue Authority (TRA) to support the institute. Earlier on the Board Chairman of the TRA, Bernard Mchomvu told the Minister that TRA has plans to upgrade the institute to meet international standards. About 660 students graduated.
 
 
Source: Tanzania Daily News

Malawi: EFDs now operational

 

4 March 2014

The Malawi Revenue Authority (MRA) on Wednesday announced the introduction of a tax compliance tool called Electronic Fiscal Devices (EFDs). During a press briefing held at Msonkho House, the Authority’s head office, MRA Commissioner of Domestic Taxes Nellie Jimu said the use of EFDs will among many benefits, increase tax compliance levels in the country. She said the devices transmit all sales data to MRA’s server which will help the Authority easily assess the correct amount of Value Added Tax (VAT) and Income Tax.

“We are introducing EFDs following the enactment of the law in July 2011 to introduce and enforce the use of these devices. The EFDs are an advanced version of electronic cash registers that record all sales transactions at the point of sale. They have fiscalised memory which means data cannot be erased,” said Jimu.

 

The Commissioner said the machines produce fiscalised receipts containing data needed to assess tax while at the same time using GPRS/mobile network connectivity to transmit the data to MRA’s central server. She then appealed to every member of the general public to demand a ‘Fiscal receipt’ generated by the EFDs.

“For the EFDs to work out perfectly, we would like to appeal to every member of the general public to demand a fiscal receipt for goods bought or services rendered from VAT operators. By demanding fiscal receipts, consumers will be assured that their VAT has indeed been recorded and accounted for,” Jimu said.

 

Some of the the features of a ‘Fiscal receipt’ will among others include, name and address of the operator, taxpayer identification number (TPIN) of the operator, an MRA logo, serial number of the device, total value of the sale, description of the goods or services, quantity, unit price, tax rate chargeable and amount of tax. The Commissioner further said the EFDs are the advantageous to businesses since they have a stock management module to help operators manage their stock and that its data reliability will lessen tax audit disputes.

“For MRA this means increased tax compliance, improved taxpayer record management, reduced time taken to assess, audit and collect, reduced audit queries, objections and appeals,” said Jimu.

 

The Deputy Commissioner General, Crispin Kulemeka, made a presentation titled ‘Facts about VAT: What it is and how it works’ which reminded all VAT operators to visibly display their certificates and emphasized that anyone contravening the law on taxes will be apprehended and penalised accordingly.
 
Taking his turn, MRA’s Commissioner General John Biziwick, said introduction of the Electronic Fiscal Devices will play a significant role in improving efficiency and effectiveness in the administration of VAT, therefore increasing revenues that will better enable Government to improve delivery of social and economic services. He said the Authority will always endeavour to find ways to enhance tax compliance, increase revenues and reduce cost of compliance by the taxpayers.

“We have appointed and certified qualified local distributors, from whom eligible VAT operators can procure EFD’s and also obtain all necessary services including installation, training, integration to your existing systems, maintenance and also secure after sales support. The authorised distributors are; Business Machines, Canotech Limited, Gestetner and Xerographics. The EFDs are available to buy from 6th March, 2014 and the roll out will be in phases. The initial phase begins from 6th March to 31st June 2014. This phase is targeting all VAT operators that are currently issuing manual receipts. These operators are also using ordinary cash registers,” said Biziwick.

 

The Commissioner General said all VAT operators that will procure, install and use the EFDs within the stipulated time frame will benefit from a Cost Recovery Scheme.

“What this means is that if they procure, install and commission their EFDs through an authorised local distributor, using their own finances, they will claim 100% cost of the device from MRA through subsequent VAT returns. There will be no cash refunds, but the Government will offset the cost incurred through VAT returns. The second point to note about the implementation of the EFDs is that this is mandatory. All VAT operators that do not have EFDs by the stated period will be punished in accordance with the law,” Biziwick said.

 

The Commissioner General further stressed that by demanding the ‘Fiscal receipt’ consumers will know that their tax will reach the final destination, businesses will have well managed records which means reduced cost of compliance and MRA will ensure that the correct amount of VAT is accounted for and collected, leading to low cost of tax administration.
 

 
Source: MRA

Malawi: VAT Collections Jump 20% EFDs rollout

 

7 March 2014

The Malawi Revenue Authority (MRA) hopes the tax base will widen and value added tax (VAT) collections jump by 20 percent following the introduction of Electronic Fiscal Devices (EFDs)—an advanced version of an electronic cash register.
 
MRA commissioner general John Biziwick told journalists in Blantyre on Wednesday the rollout of EFDs effective on March 6 will play a critical role in improving efficiency and effectiveness in the administration of VAT—a form of consumption tax levied on the purchase price—and also level the playing field. 

“As a revenue collecting body, we shall always endeavour to find ways to enhance tax compliance, increase revenues and reduce cost of compliance by the taxpayers,” he said.

 

Biziwick said one of the objectives of EFDs, apart from helping businesses improve their records management systems, is to track down businesses that have not been remitting the correct amount of VAT collected. According to Biziwick , there are about 8 800 businesses, that “faithfully and honestly” pay their VAT. EFDs are being introduced following the enactment of the law in July 2011 to introduce and enforce the use of these devices. MRA has certified local distributors, Business Machines Limited, Canotech Limited, Gestetner and Xerographics, to sell these devices ranging from $787 to $930 to eligible VAT operators and also install, train, maintain, integrate them to existing systems and securing of after sales support. 

The rollout of the device will start with phase one from March 6 to June 31 2014, targeting all VAT operators currently issuing manual receipts and those using ordinary cash registers while the second phase, at a large stage, will target VAT operators currently using Point of Sale (PoS) systems and business to business invoicing system. In essence, the devices are free of charge because all VAT operators that will procure, install and use the EFDs within the stipulated timeframe will benefit from a cost recovery scheme by claiming 100 percent cost of the device from MRA through subsequent VAT returns.
 
MRA commissioner of domestic taxes Nellie Jimu said the tax collector has been facing tax compliance challenges that include the suppression of sales, non-issuance of tax receipts/ invoices, non- remittance of VAT collected, undervaluation of tax receipts/ invoices, using multiple sets of business records and non -disclosure of branches and associated businesses. She said EFDs record all sales transactions at the point of sale, have fiscalised memory, which means data cannot be erased, produce fiscalised receipts and uses GPRS/mobile network connectivity to transmit the data to MRA central server.
 
 
Source: mwnation

Malawi mandates use of electronic fiscal devices for all registered VAT operators

 

19 March 2014

Executive summary

Effective 6 March 2014, the Malawi Revenue Authority (MRA) will implement the required use of Electronic Fiscal Devices (EFDs) for Value-Added Tax (VAT) operators.¹ EFDs are an advanced version of electronic cash registers that record all sales transactions and provide indisputable evidence of such transactions to the MRA.
 
Introduction of the EFDs are a result of amendments made to the Malawi VAT Act in July 2011. The amendments authorize the MRA to introduce the fiscal devices. The amendments make it mandatory for all VAT operators to acquire and use these machines for each sale transaction.
   

Detailed discussion

Implementation phases

For successful deployment of the EFD program, implementation will occur in phases based on the category of the VAT operators. The groups of VAT operators that must have these devices at each phase will be communicated in the media.

The initial phase began 6 March 2014. VAT operators issuing manual receipts or using ordinary cash registers are now required to acquire and use the EFDs. Ordinary cash registers are cash registers not attached to any computer system or Point of Sale (POS) devices. 

The first phase deadline for VAT operators to acquire the devices is 30 June 2014. After this date it will be an offense to issue a “non-fiscal receipt” and the MRA will take strict action against traders issuing non fiscal receipts. The two categories to follow are those that use POS systems requiring Electronic Fiscal Printers (EFP) followed by those that issue business to business (B to B) invoices required to use Electronic Signature Devices (ESD).
 
By the end of all the phases, it will be mandatory for every VAT registered operator to use an EFD. This includes any new business that has registered for VAT as of 6 March 2014.
 

EFD distributors

The MRA has licensed EFD distributors to procure from manufacturers, stock, sell, install commission and service the EFDs. Currently there are four licensed EFD distributors which include: (i) Business Machines Ltd; (ii) Canotech Limited; (iii) Gestetner Ltd; and (iv) Xerographics Ltd.
 

Cost recovery

VAT operators who procure the requisite EFDs within four months from the commencement of each phase shall recover the entire cost of the EFD from the MRA through the following month’s VAT return. VAT operators who procure the EFDs outside the prescribed time frame will not recover the cost of their purchases.
 

Implications

The MRA has announced that when the EFD operations commence, it will be mandatory for operators to process all their sales transactions through the EFD units and issue a fiscal receipt/invoice.
 

Endnote

1. As announced by the Malawi Revenue Authority on 5 March 2014 in the Press Release, Mandatory Introduction of Electronic Fiscal Devices (EFDs) For All Registered Value Added Tax (VAT) Operators in Malawi.
 
 
Source: Global Tax Alert

Malawi: MRA pilots Electronic Fiscal Devices, a new system of collecting VAT

 

22 March 2014

The Malawi Government has intensified its efforts to address various challenges it faces with tax collection from big shops and companies as Malawi Revenue Authority (MRA) pilots the use of Electronic Fiscal Devices (EFD), a new system for collecting Value Added Tax (VAT).
 
EFD, according to MRA’s Manager for Operations, Kondwani Sauti-Phiri, is a device that records all sales transactions and provides evidence of such transactions in a technically easy and undisputed way.

“EFD would replace manually generated receipts, invoices and ordinary electronic cash register. The EFD has non-erasable inbuilt fiscal ‘read only’ memory that stores business and tax data at the time of sale,” Sauti-Phiri said, adding that the EFD’s in-built GPRS modem will help MRA to capture data on a daily basis.

 

To verify reports submitted and ensure efficiency in tax collection, Sauti-Phiri added that there will be machine at MRA’s offices connected to EFDs.

“The EFD can be connected to a network to store every sales transaction while receipts, that have a life span of five years, are being issued to buyers.

 

The types of the EFDs are electronic tax register (ETR), electronic signature device (ESD) and electronic fiscal printer (EFP), Sauti-Phiri while pleading with Malawians to be asking for receipts when buying goods from shops to confirm VAT is included. Sauti-Phiri said a shop is registered to collect VAT if it make sales of up to ten million kwacha per year. He further explained that companies will purchase the machines through local suppliers Gestetner, Business Machines Limited (BML), Canotech and Xerographics.
 
As a way of making the landing cost cheaper, Sauti-Phiri said that Government has put a duty waiver on the machines.

“Much as you buy the machine upfront, you will be able to claim 100 percent cost. Effectively, this means Government has subsidised the cost of the gadget.” Sauti-Phiri said.

 

The Law regarding EFD was amended and passed in parliament in 2011 and twenty VAT operators are currently involved in the pilot phase.
 
 
Source: malawi24

Tanzania: TRA Compiles List of Firms Required to Use EFDs

 

10 April 2014

A list of business entities required to use electronic fiscal devices (EFD) has been put on the noticeboards of all regional and district Tanzania Revenue Authority (TRA) offices and on its website. This has been implemented in response to a directive given by the Prime Minister, Mr Mizengo Pinda, after a meeting held in February, this year.
 
Addressing a press briefing in Dar es Salaam, TRA Acting Director of Taxpayer Services and Education, Mr Julius Mjenga, said the meeting was also attended by the Ministry of Finance, Ministry of Industry and Trade and the Prime Minister’s Office (Regional Administration and Local Governments).
 
TRA was told to compile a list of businesses which were required to use EFDs, publish it in the media and provide their contact office details so stakeholders with queries could be served, Mr Mjenga said.

“The list has already been compiled and distributed to all regional and district commissioners countrywide,” he said. “TRA would like to inform the general public that the legal use of EFD is still in force,” Mr Mjenga stressed.

 

He warned that anyone who attempted to frustrate the exercise was committing an offence and would be prosecuted.
 
 
Source: Tanzania Daily News (Dar es Salaam)

Tanzania: TRA confers with agencies over EFD prices

 

27 April 2014 

The Tanzania Revenue Authority (TRA) has resumed a training programme directed at the business community in a second phase on the viable use of the Electronic Tax Register (ETR), The Guardian on Sunday can report.

The device that is principally used by retail business that issue receipts manually is among the three electronic fiscal devices (EFDs) which the government had introduced in recent years to targeted individual enterprises and companies doing businesses in the country. The machines have been designed for use in business for efficient management controls in areas of sales analysis and stock control system to facilitate revenue collection which conforms to requirements specified by the laws.
 
TRA Director for Taxpayer Services and Education, Richard Kayombo said in Dar es Salaam that the drive is meant to create awareness on the importance of EFDs to the general public and business groups from village level to regional level, with participation of district councils. He told the Guardian on Sunday in an exclusive interview on Wednesday that seminars are being conducted in various parts of the country, part of a continuous program organized on a block management system targeting various community groups.
 
TRA is also negotiating with 11 companies which it had offered tender to distribute the devices countrywide, with a view to reducing their prices. He said that a TRA team is currently reviewing the cost quotations with distributing agencies to review the Sh 900,000 price quotation to bring it down to Sh 600,000 or slightly above. Once the new price levels are effected, buyers would pay on instalments on agreed terms of payments, or they might acquire loan facilities from banks or SACCOS to purchase directly.
 
Traders have over the past year staged demonstrations and shop closures to protest orders of using cash registers, complaining about their steep prices.
 
 
SOURCE: GUARDIAN ON SUNDAY