VALUE ADDED TAX (VAT / TVA)

What is VAT?

Value Added Tax (VAT) is an indirect tax charged on goods and services consumed by customers.

Mu Rwanda, VAT isanzwe ni 18%.

VAT Formulas

• VAT = 18% × VAT Exclusive Price
• VAT = (18 ÷ 118) × VAT Inclusive Price
• VAT Payable = Output VAT − Input VAT
• Output VAT = 18% × Sales
• Input VAT = 18% × Purchases

VAT Keywords

• VAT – Value Added Tax
• Input VAT – VAT on Purchases
• Output VAT – VAT on Sales
• VAT Payable – Tax due to RRA
• VAT Refund – Recoverable VAT
• Tax Invoice – EBM Invoice