Businesses optimistic of electronic Billing machines

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Businesses are optimistic that the use of the electronic Billing machines-EBMs is likely to streamline the operations and thus widen their profit margins.

The machines, introduced in 2013 help track Value Added tax –VAT registered taxpayers compliance but  comes with advantages that owners  of Businesses find it more viable towards boosting their  turnovers.

“I can easily track everything that is sold from my business, when my employees steal some money I can detect it from the invoices issued from the machine,” said Judith Munyana, a trader in Mateos center in Kigali.

” I can know how each product is performing because records are kept in one place” she said on Friday  during the survey done by this  website on the adoption of the use of the machines.

Even Bbale Sulaiman of  Rahamaan Furniture limited had to realize the importance of the billing machines  after his accountant connived with  Indian traders to print out invoices of the products he was not selling.

“ I found my accountant had  printed  invoices with iron bars when I sell furniture, this means if it wasn’t the  machine, I would not have known, I  will be seen as I aided these Indians  to evade taxes,”  he said.

For Anne Marie Nikuze, a representative of a disabled cooperative dealing crafts using the machine, its usage has helped members to track the financial transactions of the cooperative.

“At first, employees would tell us to lower prices when they have sold our products at higher price and we end up with little or even people refuse to buy our products because they are expensive,” she said.

But some businesses say that the use of electronic billing machines affects their clientele as most people are not willing to pay additional 18 percent VAT charge on the products they are purchasing while others say it hampers their service delivery.

“The nature of our business you have to be swift to serve your people well and it becomes hard with the EBM,”said John Habimana, owner of  Rosty Club who was last year charged Rwf 5m for not using the machine.

Accordingly, 9,800 out of 15,578 registered VAT payers use Electronic billing machines, a challenge  ahead of the tax body-Rwanda Revenue Authority that is looking at  increasing domestic revenues.

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About the author

Olive Ndaka is the Junior Editor for RwandaEye. An investor and young entrepreneur, she is a quick learner and has contributed many articles for RwandaEye in Kinyarwanda.

More posts by | Visit the site of Ndaka

 

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