In the evening of Sunday, February 28, I was deep in conversation with friends at a local joint in our fast-developing Busanza neighborhood when a message suddenly lit up the phone of one of our crew. His grin stretched from ear to ear. He rose to his feet, drained his lover—a bottle of beer—in one confident gulp, sat back down, and in that instant, the entire mood of the conversation shifted.
Of course, we were all eager to know what news had sparked such excitement in his shiny bald head. Without wasting a second, he launched into issuing orders—commanding the table like a DASSO commander trying to bring order to a disorganized Irondo parade.
There he was, carefully reading the message that had just flashed onto his mobile phone: “TENGAMARA – RRA yohereje Ishimwe ryawe rya 10% ya TVA ringana na 143,500RWF kuri eNoti…”
The ever-smiling Pazo, as we fondly call him, had received Frw 143,500 in VAT rewards—a cash-back benefit he earned by consistently requesting EBM invoices for every purchase while constructing his first home and leaving behind life as a tenant. He pulled me into a tight embrace, like a kangaroo mother carrying her young, in appreciation of the scheme he had joined about four months earlier.
He beckoned for another round, his face glowing with a satisfaction only good fortune brings; I, meanwhile, remained faithful to my modest indulgence—another cup of African tea, steaming quietly beside me.
Pazo is one of 157,029 final consumers celebrating their share of the Frw 1.3 billion in VAT-based rewards, equivalent to 10% of the VAT paid on Electronic Invoicing System (EBM) invoices requested during October, November, and December 2025—a clear evidence of growing compliance at the point of sale.
Across many tax jurisdictions, the conversation on taxation and VAT compliance in particular, has long focused on enforcement—audits, penalties, and inspections.
While these tools remain essential, Tengamara Na TVA as fondly known, has become a quieter yet more transformative approach gaining momentum in Rwanda’s taxation system.
By incentivizing consumers to demand EBM receipts, Rwanda Revenue Authority (RRA) is reshaping tax compliance behavior at the point of sale and redefining the relationship between taxpayers, consumers, and the tax authority within the broader compliance ecosystem.
At their core, VAT-based rewards scheme encourage consumers to request invoices by offering real tangible cash-back benefits, including 50% rewards of penalties levied to a trader for refusing to issue an invoice.
Here, all a consumer needs is to simply report non-compliant traders to RRA via the WhatsApp line 0739 008 010, whether for refusing to issue an invoice or for undervaluing a purchased product.
Empowering Consumers as Compliance Partners
Traditionally, consumers have been passive participants in the VAT and general taxation system. Once they paid for goods or services, their role ended. VAT rewards scheme continues to change this narrative by giving consumers a personal stake in tax compliance.
When a consumer requests a receipt, they are not merely fulfilling a civic duty; they are actively safeguarding their chance to benefit from the rewards attached to compliant transactions.
This behavioral shift turns millions of daily transactions into micro-enforcement moments. Consumers become informal watchdogs, discouraging underreporting and cash-only practices. In effect, compliance is no longer driven solely by fear of penalties, but rather by shared incentives and collective responsibility.
In the FY 2024/2025, VAT—a major source of government revenue—contributed Frw 962.1 billion, accounting for 32.14% of the total revenue collection.
Strengthening Voluntary Compliance among Businesses
For businesses, the impact is equally significant. Knowing that customers expect official receipts—and may walk away or report non-compliance—creates a powerful incentive to declare sales accurately. VAT rewards schemes therefore reduce the space for discretionary non-compliance, particularly in high-cash sectors such as retail, hospitality, and transport.
Importantly, this pressure is market-driven rather than enforcement-heavy. Businesses comply not just because tax authorities demand it, but because consumers do. Over time, this nurtures a culture where issuing receipts and declaring VAT becomes standard practice rather than an exception—driven by instilled culture and shared responsibility, not just by law.
Enhancing the Effectiveness of Tax Administration
From the perspective of tax administration, VAT-based rewards schemes are a force multiplier. Instead of relying on audit and enforcement resources, RRA benefit from a vast, distributed compliance network powered by consumers themselves.
The digital footprint created through electronic invoicing provides richer, real-time data. This improves risk profiling, supports targeted audits, and enhances revenue forecasting. Compliance enforcement becomes smarter, more data-driven, and less adversarial.
Building Trust and Tax Morale
Beyond revenue gains, VAT rewards schemes play a subtle but vital role in building tax morale. When citizens see transparency rewarded and fairness promoted, trust in the tax system grows. Consumers feel recognized as contributors to national development, while compliant businesses gain confidence that the system rewards honesty.
This trust is essential for sustainable compliance. Tax systems thrive not only on laws and penalties, but on legitimacy and public buy-in. VAT rewards schemes help bridge the psychological gap between paying taxes and seeing their broader value to society.
Since the VAT rewards scheme was introduced in March 2024, for example, over 750,000 people have registered, requesting more than 10 million electronic invoices, generating VAT in the region of Frw 80 billion.
In a nutshell, the VAT-based rewards scheme represents a paradigm shift in tax compliance. It empowers the wider community to act as enforcers, promotes the proper use of EBM, reduces tax evasion, increases voluntary compliance, and broadens the tax base.
By aligning the interests of consumers, businesses, and tax authorities, they transform compliance from a top-down obligation into a shared social contract. As Rwanda embraces digital taxation and citizen-centered enforcement, these schemes offer a compelling lesson: when consumers are empowered and incentivized, compliance stops being enforced—it becomes embraced.
In an era where trust and transparency are as important as enforcement, VAT rewards schemes stand out as a smart, inclusive, and forward-looking approach to strengthening tax systems.
EVERY INVOICE COUNTS.
The author is the Head of Communication at Rwanda Revenue Authority.
