- within Accounting and Audit, Insurance, Government and Public Sector topic(s)
On 29 April 2026, the Government of Rwanda gazetted the Ministerial order No. 004/26/10/TC of 29/04/2026 relating to the Value Added Tax (“VAT”) on goods and services provided online (the “Ministerial order”). The Ministerial order implements the provisions of Article 3 of the VAT Act enacted in 2023 which provides that VAT is charged on goods and services including, online supplies by setting out modalities for collecting VAT on cross-border B2C supplies.
Under the Ministerial order, online supplies subject to VAT include:
- software programmes and updating services;
- services that link the supplier to the recipient, including transportation-hailing platforms;
- online gaming activities;
- search engine services;
- sales, licensing or any other form of monetising data generated from online users;
- subscriptions for online journals and magazines;
- online images, text and information;
- access to online media databases;
- online education programmes, including distance teaching programmes through pre-recorded webcasts, webinars, online courses and training, excluding education services exempted by the VAT Act;
- streaming or downloading music and films;
- websites, web hosting or remote maintenance of programmes and equipment;
- political, cultural, artistic, sporting, scientific and other broadcasts and events, including online television broadcasts; and
- any other goods and services provided through an electronic, internet or digital marketplace.
The Ministerial order provides that persons (including those not based in Rwanda) making online supplies to customers in Rwanda are required to register for VAT or appoint a representative in Rwanda for that purpose.
Following their registration or appointment of a representative in Rwanda, online suppliers will have to charge VAT on their supplies and remit it to the tax administration.
The Ministerial order also imposes an obligation on Rwandan financial institutions facilitating payments to withhold VAT on purchases made online in case the supplier is not registered for VAT or does not have a representative in Rwanda.
Persons making online supplies to the customers in Rwanda are required to register for VAT or appoint representatives in Rwanda within three months from 29 April 2026. The Rwanda Tax Administration is also (within the same period) expected to put in place a designated portal and collaborate with the financial institutions facilitating payments, to complete the integration of their systems.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
[View Source]