Rwanda: VAT on nonresident online sellers of goods and services introduced

Ministerial Order No 004/26/10/TC (published April 29, 2026) introduces VAT compliance obligations for nonresident sellers of goods and services provided online.

• Scope: Covers goods and services provided online, including intangible goods and digital services such as software, platforms, streaming, cloud computing, and other digital marketplace transactions.
• B2B vs. B2C: No distinction made between B2B and B2C. Rules apply to all customers located in Rwanda regardless of status.
• Customer location: A transaction is considered taxable in Rwanda if the recipient is in Rwanda, consumption occurs in Rwanda (even if the buyer is not in Rwanda), or indicators such as billing address, SIM card, bank account, phone number, or IP address link the customer to Rwanda.
• Marketplace/platform rules: While platforms are included as taxable services (intermediation), the order does not shift VAT obligations to electronic marketplace operators and intermediaries. However, financial intermediaries may have VAT withholding obligations if the seller is not registered.
• Registration: Nonresident sellers must register if selling in-scope goods or services to customers in Rwanda through an electronic registration system to be setup by the tax authority, regardless of their sales volume. Nonresident sellers may appoint a local representative instead of registering directly with the tax authority. 
• VAT invoicing: The order does not include any specific provisions that address invoicing requirements.
• Penalties: Penalty provisions in the general VAT law would apply.
• Implementation timeline: The order is effective as of the date of its publication in the official gazette but does not include any specific timeline for the tax authority to establish the electronic registration system.

For more information, contact a KPMG tax professional:

Philippe Stephanny | philippestephanny@kpmg.com

Joel Namanya | jnamanya@kpmg.com