- Rwanda enacted Law No. 009/2025 on May 27, 2025, amending the VAT Law No. 049/2023.
- The reform aims to enhance tax compliance, broaden the tax base, and align with economic development goals.
- Key amendments include expanded VAT exemptions and clarification on taxable supplies.
- VAT exemptions now cover medical services, pharmaceutical products, sanitary pads, educational materials, books, newspapers, raw agricultural products, electric vehicles, and certain industrial machinery.
- VAT applies to products manufactured in Rwanda, imported products, and services supplied within Rwanda.
- Industrial and manufacturing sectors benefit from temporary VAT exemptions to stimulate growth.
- Health and education sectors see cost reductions due to exemptions.
- Freight and logistics operators must charge 18 percent VAT on transport services.
- E-mobility retains VAT exemptions for fully electric vehicles until 2028.
- Long-term stays at hotels and tourist rentals may now be VAT exempt.
Source: vatabout.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
